...\ eighth edition Global Business Today CharlesW. L Hill University of Washington McGraw-Hill Irwin contents PREFACE xiii PART ONE Chapter One Introduction 4 What Is Globalization? 6 The Globalization of Markets 6 The Globalization of Production 7 The Emergence of Global Institutions 9 Drivers of Globalization 11 Declining Trade and Investmen t Barriers 11 The Role of Technological Change 14 The Changing Demographics of the Global Economy 16 The Changing World Output and World Trade Picture 16 The Changing Foreign Direct Investment Picture 18 The Changing Nature of the Multinational Enterprise 19 The Changing World Order 22 The Global Economy of the Twenty-First Century 23 The Globalization Debate 24 Antiglobalization Protests 24 Globalization, Jobs, and Income 26 Globalization, Labor Policies, and the Environment 28 Globalization and,National Sovereignty 29 Globalization and the World's Poor 30 Managing in the Global Marketplace 31 Key Terms 33 Chapter Summary 33 Critical Thinking and Discussion Questions 34 Research Task 34 Closing Case: Legal Outsourcing 35 Introduction and Overview 2 Globalization 3 PART TWO Chapter Two Country Differences 36 National Differences in Political Economy 37 Opening Case: Ghana: An African Dynamo 37 Introduction 38 Political Systems 39 Collectivism and Individualism 39 Democracy and Totalitarianism 42 Economic Systems 44 Market Economy 44 Command Economy 45 Mixed Economy 45 Legal Systems 46 Different Legal Systems 46 Differences...
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...Errata for Instructor’s Manual Chapter 12 – The Strategy of International Business Hill, International Business, 7th Edition CLOSING CASE: Wal-Mart’s Global Expansion Summary The closing case describes Wal-Mart’s international expansion strategy. Wal-Mart, today the largest retailer in the world, was a purely domestic company until 1991. When the company decided to expand into Mexico, critics warned that the company was too American, that its model would not work in other where markets where infrastructure, consumer tastes and preferences vary, and where established retailers already dominated. Wal-Mart went ahead with its expansion plans anyway, opening a joint venture operation in Mexico with local retailer Cifera. Discussion of the closing can revolve around the following questions: QUESTION1: How does expanding internationally benefit Wal-Mart? ANSWER 1: Wal-Mart really had no choice but to expand internationally if the company was to continue to grow. The company had reached a saturation point in the U.S. market, and needed to expand elsewhere in order to grow revenues. However, other benefits have accrued as a result of the international expansion including the ability to reap significant economies of scale from its global buying power, and gains from the cross-flow of ideas across the thirteen countries in which the company now competes. QUESTION 2: What are the risks that Wal-Mart faces when entering other retail markets? How can these risks...
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...Shidler College of Business University of Hawai´i at Mānoa Vietnam MBA Program Fall 2011 BUS 632—Business Strategy Dates of Course: Oct. 20 - 29 Professor James Richardson BusAd C501f Office Phone: 956-7270 Email: jamesr@hawaii.edu Course Outline and Objectives: BUS 632 covers strategic management as an integrating paradigm for your business knowledge. The aim is to develop an understanding of the strategic challenges facing managers in competitive markets. Globalization, foreign competition, and rapidly changing technology have sharply increased the intensity of competition in most industries. We will learn how leading firms have devised strategies, structured, and managed their organizations to achieve competitive advantage in this challenging environment. Strategic management deals with uncertainty and unstructured situations. You will learn tools and concepts for putting some structure into your analysis of strategic issues. But most strategic choices require judgment. Case studies enable us to test our judgment and learn vicariously from successful and unsuccessful managers in a variety of situations. Hence, class discussion of the cases is a central part of your learning experience. Methods: We will combine cases, lectures, individual and group papers and presentations. Pre-requisites: First semester of Core. Textbook: Jay Barney, Gaining and Sustaining Competitive Advantage, Fourth Edition. Case Packet will be available. Assignments and Grading: 1. Participation: (15%)...
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...detail and containing a bank of practice questions for plenty of reinforcement of key topics • A key study guide – guiding you through the study text and helping you revise • An online question bank for additional reinforcement of knowledge • An exam kit – essential for exam preparation and packed with examstandard practice questions • 2 tutor-marked mock exams to be sat during your studies • Key notes - highlighting the key topics in an easy-to-use format Total price: £160.95 Visit us at www.emilewoolfpublishing.com distancelearning@emilewoolfpublishing.com tel: +44(0) 1483 225746 ACCA ACCA Paper F3 (INT) Financial Accounting (International) Welcome to Emile Woolf‘s study text for Paper F3 Financial Accounting (International) which is: Written by tutors Comprehensive but concise In simple English Used around the world by Emile Woolf...
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...Syllabus International Business 1 (IB-1) 2012-2013 1-IBMS 1. INTRODUCTION This International Business (IB-1) course is designed to provide students with a basic understanding of the international business environment. In order to be successful, IBMS Students need to familiarize themselves with the basic concepts and definitions of today’s competitive business world. Students must become aware of the major actors and forces that help shape the international business context. The course covers a variety of topics, which include the theoretical foundations of global trade and investment, the political environment, foreign direct investment and market entry, international business strategy and operations. The course is structured around lectures and workshops. Students are expected to attend all lectures and workshops. In the lectures, students will learn about the field of international business. In the workshops, students are expected to present and discuss international business cases. These business cases provide helpful examples and insights towards an understanding of the International Business theory taught in lecture classes. Students are encouraged to contribute to meaningful discussions, develop the ability to defend their position and apply knowledge to “real life” situations based on the cases presented in class. Attendance IB-1 is not a spectator sport. Attendance and contribution accounts for 10%...
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...REITMANS WAY OUT INTRODUCTION (PROBLEM OR ISSUE) Founded in Montreal in 1926, Reitmans is a Canadian retailer of women’s, men’s and junior apparel and accessories, operating more than 900 stores under seven banners, each targeting consumers of different age groups. Although Reitmans has a long history and great reputation in Canadian apparel retail market, its sales revenues and net income declined steadily and significantly since 2011, with sales dropping from more than $900 million in 2011 down to nearly $700 million in 2015 and net income from $90 million in 2011 to about $10 million in 2015. (Attachment 1) Facing severe financial difficulties, in Nov. 2014, Reitmants, which had already closed dozens of stores across its various banners, announced that it would close or rename 107 Smart Set Stores which belong to one of its seven banners by the end of 2015. Earlier than this announcement, Reitmans had tried to refocus on the Smart Set banner over nearly two years, an attempt to attract more mature woman who had greater amount of income and who were willing to spend more on clothing. However, Reitmans decided to abandon the efforts eventually confronting with intense competition and the pressures brought on by the impact of a weaker Canadian dollar, which is currently of less the 70 cents U.S. In order to promote sales of its Thyme maternity apparels, Reitmans announced in 2012 a partnership with Babies “R” US to supply maternity accessories in 150 US chain stores...
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... Previous Page CHAPTER 9: Closing the Project Click or drag to navigate through the chapter: Next Page . Meghan sent Sarah the two-page summary and the new report for the final approval. Sarah confirmed that all was good to go. The final report was sent to Sarah for distribution within the Upper Region Workforce Development Group more than a week before the due date. The finance team for Effective Market Research sent the final invoice for the last 25 percent of the project costs. Meghan sent the project evaluation form to Sarah and met with her project team members. Two days later, Meghan received the following e-mail, “Meghan, I did not approve this report, and it cannot be distributed. I see all kinds of problems in the report that must be corrected before the report is OK.” The e-mail was from Christine. Meghan was very careful to follow the directions of Christine and had approval from Sarah for the final report. Meghan sent a note, “Christine, Please let me know the problems that are in the report so that we can make corrections.” Meghan was a bit concerned that Christine had responded in such a manner when the communication from Sarah had suggested that Christine had approved the report. Sarah was supposed to be Meghan’s contact. CASE QUESTIONS 1. Did Meghan’s team satisfy the customer? Why or why not? 2. How should Meghan respond...
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...BS3102 – Financial Management Lecturer: Anh Tran Coursework 1 – Case 5 – 24/11-‘13 Andre Deimling Arman Gabass Carl Dahl Enrico Mellis Philip Koenig BS3102 – Financial Management Lecturer: Anh Tran Coursework 1 – Case 5 – 24/11-‘13 Andre Deimling Arman Gabass Carl Dahl Enrico Mellis Philip Koenig General Electric’s Proposed Acquisition of Honeywell General Electric’s Proposed Acquisition of Honeywell Investment Decisions Analysis of Investment Decisions Analysis of Table of Contents Executive Summary 2 Strategic Considerations 4 Political Complications 4 Personalities Involved 4 Valuation Methods 5 Early Closing of Positions 6 Situation Analysis 6 Investments Effects on Closing Positions on the 1st March 2001 7 Late Closing of Position: 8 Investments Effects on Closing Positions after the 1st July 2001 8 Arbitrage Spread 9 Conclusion 11 Executive Summary The proposed merger between General Electric (GE) and Honeywell has been praised by the Companies and up until 1st of March 2001 been called “the cleanest deal you’ll ever see” by Welch, CEO of GE. On the 1st of March the antitrust regulator, The European Commission (EC), announces that they will perform a full review over the potential merger. If GE were to acquire Honeywell, they could become a dominant player in the Aerospace industry. This fact is underlying reason for EC’s review as their main objectives are to prevent market dominance, as effects of un-proportional...
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...PURCHASE AGREEMENT[1] ASSET PURCHASE AGREEMENT (the “Agreement”) entered into this ___ day of April, 2013, between Flyer International Corp., a Delaware corporation (“Buyer”), and Hill Universal Inc., a Delaware corporation (“Seller”). Capitalized terms used in this Agreement and not otherwise defined shall have the meanings set forth in Article 1. RECITALS WHEREAS, Buyer desires to purchase from Seller, and Seller desires to sell to Buyer, the Assets (as hereinafter defined), in each case in accordance with the terms and subject to the conditions of this Agreement; WHEREAS, Buyer and Seller (collectively, the “Parties”) desire to enter into this Agreement for the purpose of setting forth their mutual understandings and agreements with respect to the foregoing; NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, hereby agree as follows: ARTICLE 1 DEFINITIONS For purposes of this Agreement, the following terms (and variations thereof) have the meanings specified or referred to in this Article 1: “Assets” means all owned tangible property (including, without limitation, machinery, equipment, furniture, automobiles, __________) used in operating the Facility and the Equipment as currently operated; “Best Efforts” means the efforts that a prudent Person desirous of achieving a result would use in similar...
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...Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2012 or ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 000-22513 AMAZON.COM, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 91-1646860 (I.R.S. Employer Identification No.) 410 Terry Avenue North Seattle, Washington 98109-5210 (206) 266-1000 (Address and telephone number, including area code, of registrant’s principal executive offices) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Name of Each Exchange on Which Registered Common Stock, par value $.01 per share None Nasdaq Global Select Market Securities registered pursuant to Section 12(g) of the Act: Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No ¨ No x Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ¨ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities...
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... International Economics and Business (Course code: 308) Instructor: Dr. Mahima Sharma (A+B+D), Mr. Mohd. Irfan (C+E) Course Credit: 3 Number of Sessions: 24 Office Ext: 236, 269 Course Overview/objective: There are new realities that are critical for today’s students to embrace with the remarkable changes that are taking place in the cross border flow of products, services, capital, technology and people. Today both the volume of international trade and the level of firms’ internationalization are increasing at a fast pace creating newer opportunities and challenges for business. With this fact in mind, this course has been designed to prepare the future managers to grasp and comprehend the economic forces behind international business operations (as for instance -why does international trade take place? or why do firms invest overseas?) and the economic consequences of such operations( as for instance effect of international trade on production and consumption or effect of international trade on exchange rates. The contents of the course will familiarize the students with various fundamentals of international economics theory and also understand the linkages between these economic concepts and their implications for business. (As for instance the creation of a regional trade block and its implications for various sectors of business in the integrating countries) ...
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...is the major benefit of trade identified in the theories of international trade? 2. What do theories of international trade teach us about the pattern of trade in the world economy? 3. 6 4. What are the main differences among mercantilism, Adam Smith’s theory of absolute advantage, and David Ricardo’s theory of comparative advantage? 5. Why is the theory of comparative advantage so important in today’s world? 6. According to the theory of comparative advantage, what is the relationship between free trade and economic growth? Does the empirical evidence support this prediction? 7. What is the criticism that Paul Samuelson made of theories that advocate free trade? 8. How is the Heckscher- Ohlin theory different from the theory of comparative advantage? 9. What is the Leontief paradox? Why is it important? 10. What are central predictions of the product life- cycle theory? What are the limitations of this theory? 11. What does new trade theory tell us about the pattern of trade in the world economy? 12. What are the implications of new trade theory for government policy? 13. According to Porter’s theory of national competitive advantage, what elements explain why different countries achieve international success in certain industries? 14. What are the implications of Porter’s theory for government policy? 15. What are the implications of theories of international trade such as the theory of comparative advantage for the location...
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...Chapter 4 Case Study: Teva Pharmaceuticals Buys Barr Pharmaceuticals to Create a Global Generic Drugs Powerhouse 1. Why do you believe that Teva chose to acquire the outstanding stock of Barr rather than selected assets? Explain your answer. Answer: Much of the value of Barr is intangible in the form of patents, brand names, and in-process research and development. The latter generally represents unpatented ideas and processes which have not been commercialized but may have the potential to become commercially viable products. When a firm acquires the stock of another firm, it is entitled to all assets (tangible or otherwise) and liabilities that are either on or off the balance sheet. Tax losses and credits and other value attributes such as brand names also pass to the owners of the stock. In a purchase of assets, the acquirer only is entitled to those assets that are listed and appended to the agreement of purchase and sale. Consequently, for a business where intangible assets are so important, a stock purchase would seem the most appropriate form of acquisition. 2. Mergers of businesses with operations in many countries must seek approval from a number of regulatory agencies. How might this affect the time between the signing of the agreement and the actual closing? How might the ability to realize synergy following the merger of the two businesses be affected by actions required by the regulatory authorities before granting their approval? Be specific. Answer:...
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...TRANSACTION SERVICES Doing Deals in Tough Times Best Practices of Leading M&A Teams ADVISORY Doing Deals in Tough Times 1 Tough Times Ahead Although 2007 was a record-setting year for global mergers and acquisitions (M&A), the current credit market suggests that conditions will become significantly more challenging for acquirers in the immediate future. Banks and other financial institutions have been particularly hard hit –analysts estimate that sub prime losses could reach $400 billion, and with their balance sheets in disarray, banks have not been eager to fund new transactions. Investor’s Business Daily estimates that sponsor deal volume will fall 30 percent in 2008 and strategic deals will fall 10 percent. Because of these conditions, lenders are now imposing tougher hurdles on dealmakers and forcing them to better articulate and justify their future expected cash flows. Of course, even in tough times companies will continue to make acquisitions. However, today’s difficult financial environment will put added pressure on companies to succeed. Companies that are fortunate enough to finance their deals will understand that they have a smaller margin of error. Managers who are relying on new synergies will find themselves racing against the clock to prove that their value proposition is real and to satisfy the terms being enforced by lenders. In addition, the softer economic times will further challenge acquirers to capture new revenue synergies...
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...School of Business Candidate - 2009 Masters in Financial Management scott@biomatica.com Supervisor: Hans Haanappel, PhD Erasmus University Rotterdam, Department of Finance Assistant Professor - Faculty of Economics hans_haanappel@planet.nl I. MANAGEMENT SUMMARY SABMiller plc (www.sabmiller.com), publicly listed on the London Stock Exchange (LSE:SAB) and Johannesburg Stock Exchange (JSE:SAB), and available via the US OTC market (OTC:SBMRF), is a global brewing and bottling group. Founded in South Africa in 1895, SABMiller today is an international enterprise with a market value of £21 billion, producing a range of premium beers, including six numbering amongst the top 50 brands in the world: Pilsner Urquell, Peroni, Miller Genuine Draft, Miler Lite, Castle and Grolsch. The Grolsch brand, previously purveyed by 392-year-old Royal Grolsch NV, was the target of a notable acquisition in the brewery industry in November of 2007, with SABMiller paying a premium €816 million ($1.2bn; £583m), an 84% premium over Grolsch’s then share price. A premium price for a premium band, the acquisition of Grolsch added a northern European product to SABMiller’s portfolio and expanded its native and foreign market share. Riding a wave of merger mania in the brewing industry, hindsight and the global recession ask: was it worth it? This case study takes a close look at the fundamentals in addressing this question. Keywords SABMiller, Grolsch, beer, breweries, acquisitions, valuation, case study ...
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