Riad A. Ajami is currently Professor of International Management and Global Strategy at the Raj Soin College of Business at Wright State University, USA. Professor Ajami is the Editor-in-Chief of the Journal of Asia-Pacific Business and Editor-in-Chief of the Haworth International Business Press Series in Asia-Pacific Business. He has appeared on national television and radio, including, among others, Nightline, the PBS News Hour, NBC News, CNN, National Public Radio and CBS Radio.G. Jason Goddard is Vice President at Wells Fargo Bank, where he has been a commercial lender for over 20 years. He obtained his MBA from the University of North Carolina at Greensboro, USA. Mr. Goddard is currently Adjunct Professor at Wake Forest University and UNC-Greensboro, and is the Associate Editor of the Journal of Asia-Pacific Business, where he has authored numerous articles. Mr. Goddard teaches the investment real estate course at Wake Forest University, USA, and has taught international business and international finance at UNCG and in Ludwigshafen Germany at the University of Applied Sciences.

• Chapter One: Global Business: Competitiveness and Sustainability 1Globalization: Detractors and Supporters 2Global Business: The Balance of Competitiveness and Sustainability 4Thematic Definition of the Field of International Business 10Chapter Two: International Marketing 11What Must Be Done: The International Marketer’s Dilemma 11To Centralize or Decentralize: The First Key Decisions 12Ethnocentric, Geocentric, & Polycentric Approaches 14Product Decisions 14Promotional Tools 16Personal Selling 17Sales Promotions 18Publicity and Public Relations 18Pricing Decisions 18Pricing Methods 19Placement Decisions: Distribution of Products 22The Importance of Placement 22Factors Involved in Distribution Decisions 23Summary 26Discussion Questions 27Bibliography 28Appendix: A Checklist for Export Marketing 30Chapter Three: International Finance 33Financing International Business 33Working Capital Management 33Intra-company Pooling 36Hedging Against Inflation 37Managing Blocked Funds 37Transfer Pricing 39Capital Budgeting and Financial Structure of an MNC 40Exchange Control Restrictions on Remittances 40Political Risks 40Tax Considerations 40Sources of Funds 41Currency of Borrowing Investments 41Different Inflation Rates 42Letters of Credit in International Trade 43International Capital Markets 43The Emergence of International Capital Markets 44National Financial Markets 45The Euromarkets 46International Equities Markets 49Emerging Markets 51Summary 52Discussion Questions 53Bibliography 54Chapter Four: International Accounting 55What is Accounting? 55Differences in Accounting Practices Among Countries 56Factors Affecting Accounting Systems 56What Type of Differences Emerge? 57Differences in Valuation 58The Impact of Accounting Differences 58Differences in Disclosure 59Segmentation of Accounting 60Social Reporting 62Policy Formation and Harmonization 63 Determining Policy 63Policymaking in the United States 63Policymaking in other Countries 63Harmonization 64Regional Harmonization Efforts 65Special Accounting Problems 66Differences in Currency Exchange Rates 67Consolidation Problems 70Inflation 72Transfer Pricing and Costing 73Other International Accounting Issues 74Accounting for Expropriation 74Planning and Control 74Auditing 75Summary 75Discussion Questions 75Bibliography 77Chapter Five: International Taxation 79Why Taxes? 79Types of Taxes 80Income Taxes 80Transaction Taxes 81Value-Added Taxes 81Excise Taxes 82Extraction Taxes 82Tariffs (Border Taxes) 82Tax Compliance and Tax Enforcement 82International Taxation 85Taxes: MNC 85Taxes: U.S. Controlled Foreign Corporations 85Double Taxation 86Tax Treaties 86Foreign Tax Credits for U.S. Corporations 87Special Issues and Problems in International Taxation 89Tax Havens 89Transfer Pricing 90Unitary Taxes 90Tax Incentives for International Business 91Foreign Sales Corporations 91Domestic International Sales Corporations 92U.S. Possessions Corporations 92Influence of U.S. Tax Law on Corporate Operations 93Taxation of Individual Foreign Source Income 93Expenses of U.S. Expatriates 94Summary 94Discussion Questions 95Bibliography 96Chapter Six: International Staffing and Labor Issues 97 Organizing a Multinational Corporation 97Function Structure 98Regional Structure 98Product Structure 98Matrix Structure 98International Staffing 98Recruitment 98Selection 99Training 100Motivation 101Managerial Staffing 101Value to Firm 101Branch Manager versus Home Office: Who Is In Charge? 102Branch Managers: Who Should Firms Choose? 103Choosing Branch Managers: Selection Criteria 104Labor Pool 104Corporate Policies 104Desired Local Image 104Local Employee Incentives 104Existing Methods of Selection 105Potential For Culture Shock 105Training Branch Managers 105Alternative Models 106Compensating Branch Managers 107Wages 107Taxes 107Repatriating Branch Managers 107Reverse Culture Shock 107Ethical Issues 108Female Managers Overseas 108Overseas Assignments as Dumping Grounds 109International Labor Issues 109Managing an International Work Force 109Wages and Benefits 110Job Security and Layoffs 111Labor Productivity 112Technology 112Labor Unions 113MNC Tactics 122Counter-Tactics by Labor 123International Unions 123Codetermination 124Summary 124Discussion Questions 125Bibliography 126Chapter Seven: Managing Global Operations and Technology 127Operations, Technology, and International Competition 127International Production and Operations 128Worldwide Standardization 128Supply 128Control 129Controlling Strategically 129Areas to Control 129Designing the Local Operations System 132Plant Location 133Plant Layout 133Materials Handling 133Staffing 133Production and Operations Management 133Productive Activities 134Supportive Activities 135Just-In-Time System 136International Technology 136Diffusion of Technology 137Technology Development 137Technology Transfer 138Choice of Production Technology 139Pricing Technology Transfers 141Protecting Technology 142Management Information Systems 142MIS in an MNC 142Corporate Reports 143International Data Processing: Integration Issues 144Should International Firms Go Global? 145Summary 146Discussion Questions 147Bibliography 148Chapter Eight: Global Business Cases 149Global Business Cases 149Competitiveness Cases:Myanmar: The Last Global Frontier 150 (G. Jason Goddard) Increasing Market Share at Acme Industries 154 (Van R. Wood VCU et al) Attractiveness of Global Markets 166 (Gregory Keller Wright State) Hedging with Foreign Exchange 175 (Anonymous) Sustainability Cases:Lilly Pharmaceuticals: Triple Bottom Line and Values-Based Leadership 183(Joseph Petrick, Wright State)Corporate Diversity Initiative 190(Anonymous)International Real Estate Investor 196(G. Jason Goddard)Cooperative Workforce Development: Public-Private Sustainable Linkages 206(Jennifer Winner & Riad Ajami)Privilege Capital 213 (Martina Roskova)Glossary 223Index 232 About the Authors 238

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Riad A. Ajami is currently Professor of International Management and Global Strategy at the Raj Soin College of Business at Wright State University, USA. Professor Ajami is the Editor-in-Chief of the Journal of Asia-Pacific Business and Editor-in-Chief of the Haworth International Business Press Series in Asia-Pacific Business. He has appeared on national television and radio, including, among others, Nightline, the PBS News Hour, NBC News, CNN, National Public Radio and CBS Radio.G. Jason Goddard is Vice President at Wells Fargo Bank, where he has been a commercial lender for over 20 years. He obtained his MBA from the University of North Carolina at Greensboro, USA. Mr. Goddard is currently Adjunct Professor at Wake Forest University and UNC-Greensboro, and is the Associate Editor of the Journal of Asia-Pacific Business, where he has authored numerous articles. Mr. Goddard teaches the investment real estate course at Wake Forest University, USA, and has taught international business and international finance at UNCG and in Ludwigshafen Germany at the University of Applied Sciences.

• Chapter One: Global Business: Competitiveness and Sustainability 1Globalization: Detractors and Supporters 2Global Business: The Balance of Competitiveness and Sustainability 4Thematic Definition of the Field of International Business 10Chapter Two: International Marketing 11What Must Be Done: The International Marketer’s Dilemma 11To Centralize or Decentralize: The First Key Decisions 12Ethnocentric, Geocentric, & Polycentric Approaches 14Product Decisions 14Promotional Tools 16Personal Selling 17Sales Promotions 18Publicity and Public Relations 18Pricing Decisions 18Pricing Methods 19Placement Decisions: Distribution of Products 22The Importance of Placement 22Factors Involved in Distribution Decisions 23Summary 26Discussion Questions 27Bibliography 28Appendix: A Checklist for Export Marketing 30Chapter Three: International Finance 33Financing International Business 33Working Capital Management 33Intra-company Pooling 36Hedging Against Inflation 37Managing Blocked Funds 37Transfer Pricing 39Capital Budgeting and Financial Structure of an MNC 40Exchange Control Restrictions on Remittances 40Political Risks 40Tax Considerations 40Sources of Funds 41Currency of Borrowing Investments 41Different Inflation Rates 42Letters of Credit in International Trade 43International Capital Markets 43The Emergence of International Capital Markets 44National Financial Markets 45The Euromarkets 46International Equities Markets 49Emerging Markets 51Summary 52Discussion Questions 53Bibliography 54Chapter Four: International Accounting 55What is Accounting? 55Differences in Accounting Practices Among Countries 56Factors Affecting Accounting Systems 56What Type of Differences Emerge? 57Differences in Valuation 58The Impact of Accounting Differences 58Differences in Disclosure 59Segmentation of Accounting 60Social Reporting 62Policy Formation and Harmonization 63 Determining Policy 63Policymaking in the United States 63Policymaking in other Countries 63Harmonization 64Regional Harmonization Efforts 65Special Accounting Problems 66Differences in Currency Exchange Rates 67Consolidation Problems 70Inflation 72Transfer Pricing and Costing 73Other International Accounting Issues 74Accounting for Expropriation 74Planning and Control 74Auditing 75Summary 75Discussion Questions 75Bibliography 77Chapter Five: International Taxation 79Why Taxes? 79Types of Taxes 80Income Taxes 80Transaction Taxes 81Value-Added Taxes 81Excise Taxes 82Extraction Taxes 82Tariffs (Border Taxes) 82Tax Compliance and Tax Enforcement 82International Taxation 85Taxes: MNC 85Taxes: U.S. Controlled Foreign Corporations 85Double Taxation 86Tax Treaties 86Foreign Tax Credits for U.S. Corporations 87Special Issues and Problems in International Taxation 89Tax Havens 89Transfer Pricing 90Unitary Taxes 90Tax Incentives for International Business 91Foreign Sales Corporations 91Domestic International Sales Corporations 92U.S. Possessions Corporations 92Influence of U.S. Tax Law on Corporate Operations 93Taxation of Individual Foreign Source Income 93Expenses of U.S. Expatriates 94Summary 94Discussion Questions 95Bibliography 96Chapter Six: International Staffing and Labor Issues 97 Organizing a Multinational Corporation 97Function Structure 98Regional Structure 98Product Structure 98Matrix Structure 98International Staffing 98Recruitment 98Selection 99Training 100Motivation 101Managerial Staffing 101Value to Firm 101Branch Manager versus Home Office: Who Is In Charge? 102Branch Managers: Who Should Firms Choose? 103Choosing Branch Managers: Selection Criteria 104Labor Pool 104Corporate Policies 104Desired Local Image 104Local Employee Incentives 104Existing Methods of Selection 105Potential For Culture Shock 105Training Branch Managers 105Alternative Models 106Compensating Branch Managers 107Wages 107Taxes 107Repatriating Branch Managers 107Reverse Culture Shock 107Ethical Issues 108Female Managers Overseas 108Overseas Assignments as Dumping Grounds 109International Labor Issues 109Managing an International Work Force 109Wages and Benefits 110Job Security and Layoffs 111Labor Productivity 112Technology 112Labor Unions 113MNC Tactics 122Counter-Tactics by Labor 123International Unions 123Codetermination 124Summary 124Discussion Questions 125Bibliography 126Chapter Seven: Managing Global Operations and Technology 127Operations, Technology, and International Competition 127International Production and Operations 128Worldwide Standardization 128Supply 128Control 129Controlling Strategically 129Areas to Control 129Designing the Local Operations System 132Plant Location 133Plant Layout 133Materials Handling 133Staffing 133Production and Operations Management 133Productive Activities 134Supportive Activities 135Just-In-Time System 136International Technology 136Diffusion of Technology 137Technology Development 137Technology Transfer 138Choice of Production Technology 139Pricing Technology Transfers 141Protecting Technology 142Management Information Systems 142MIS in an MNC 142Corporate Reports 143International Data Processing: Integration Issues 144Should International Firms Go Global? 145Summary 146Discussion Questions 147Bibliography 148Chapter Eight: Global Business Cases 149Global Business Cases 149Competitiveness Cases:Myanmar: The Last Global Frontier 150 (G. Jason Goddard) Increasing Market Share at Acme Industries 154 (Van R. Wood VCU et al) Attractiveness of Global Markets 166 (Gregory Keller Wright State) Hedging with Foreign Exchange 175 (Anonymous) Sustainability Cases:Lilly Pharmaceuticals: Triple Bottom Line and Values-Based Leadership 183(Joseph Petrick, Wright State)Corporate Diversity Initiative 190(Anonymous)International Real Estate Investor 196(G. Jason Goddard)Cooperative Workforce Development: Public-Private Sustainable Linkages 206(Jennifer Winner & Riad Ajami)Privilege Capital 213 (Martina Roskova)Glossary 223Index 232 About the Authors 238

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Riad A. Ajami is currently Professor of International Management and Global Strategy at the Raj Soin College of Business at Wright State University, USA. Professor Ajami is the Editor-in-Chief of the Journal of Asia-Pacific Business and Editor-in-Chief of the Haworth International Business Press Series in Asia-Pacific Business. He has appeared on national television and radio, including, among others, Nightline, the PBS News Hour, NBC News, CNN, National Public Radio and CBS Radio.G. Jason Goddard is Vice President at Wells Fargo Bank, where he has been a commercial lender for over 20 years. He obtained his MBA from the University of North Carolina at Greensboro, USA. Mr. Goddard is currently Adjunct Professor at Wake Forest University and UNC-Greensboro, and is the Associate Editor of the Journal of Asia-Pacific Business, where he has authored numerous articles. Mr. Goddard teaches the investment real estate course at Wake Forest University, USA, and has taught international business and international finance at UNCG and in Ludwigshafen Germany at the University of Applied Sciences.

• Chapter One: Global Business: Competitiveness and Sustainability 1Globalization: Detractors and Supporters 2Global Business: The Balance of Competitiveness and Sustainability 4Thematic Definition of the Field of International Business 10Chapter Two: International Marketing 11What Must Be Done: The International Marketer’s Dilemma 11To Centralize or Decentralize: The First Key Decisions 12Ethnocentric, Geocentric, & Polycentric Approaches 14Product Decisions 14Promotional Tools 16Personal Selling 17Sales Promotions 18Publicity and Public Relations 18Pricing Decisions 18Pricing Methods 19Placement Decisions: Distribution of Products 22The Importance of Placement 22Factors Involved in Distribution Decisions 23Summary 26Discussion Questions 27Bibliography 28Appendix: A Checklist for Export Marketing 30Chapter Three: International Finance 33Financing International Business 33Working Capital Management 33Intra-company Pooling 36Hedging Against Inflation 37Managing Blocked Funds 37Transfer Pricing 39Capital Budgeting and Financial Structure of an MNC 40Exchange Control Restrictions on Remittances 40Political Risks 40Tax Considerations 40Sources of Funds 41Currency of Borrowing Investments 41Different Inflation Rates 42Letters of Credit in International Trade 43International Capital Markets 43The Emergence of International Capital Markets 44National Financial Markets 45The Euromarkets 46International Equities Markets 49Emerging Markets 51Summary 52Discussion Questions 53Bibliography 54Chapter Four: International Accounting 55What is Accounting? 55Differences in Accounting Practices Among Countries 56Factors Affecting Accounting Systems 56What Type of Differences Emerge? 57Differences in Valuation 58The Impact of Accounting Differences 58Differences in Disclosure 59Segmentation of Accounting 60Social Reporting 62Policy Formation and Harmonization 63 Determining Policy 63Policymaking in the United States 63Policymaking in other Countries 63Harmonization 64Regional Harmonization Efforts 65Special Accounting Problems 66Differences in Currency Exchange Rates 67Consolidation Problems 70Inflation 72Transfer Pricing and Costing 73Other International Accounting Issues 74Accounting for Expropriation 74Planning and Control 74Auditing 75Summary 75Discussion Questions 75Bibliography 77Chapter Five: International Taxation 79Why Taxes? 79Types of Taxes 80Income Taxes 80Transaction Taxes 81Value-Added Taxes 81Excise Taxes 82Extraction Taxes 82Tariffs (Border Taxes) 82Tax Compliance and Tax Enforcement 82International Taxation 85Taxes: MNC 85Taxes: U.S. Controlled Foreign Corporations 85Double Taxation 86Tax Treaties 86Foreign Tax Credits for U.S. Corporations 87Special Issues and Problems in International Taxation 89Tax Havens 89Transfer Pricing 90Unitary Taxes 90Tax Incentives for International Business 91Foreign Sales Corporations 91Domestic International Sales Corporations 92U.S. Possessions Corporations 92Influence of U.S. Tax Law on Corporate Operations 93Taxation of Individual Foreign Source Income 93Expenses of U.S. Expatriates 94Summary 94Discussion Questions 95Bibliography 96Chapter Six: International Staffing and Labor Issues 97 Organizing a Multinational Corporation 97Function Structure 98Regional Structure 98Product Structure 98Matrix Structure 98International Staffing 98Recruitment 98Selection 99Training 100Motivation 101Managerial Staffing 101Value to Firm 101Branch Manager versus Home Office: Who Is In Charge? 102Branch Managers: Who Should Firms Choose? 103Choosing Branch Managers: Selection Criteria 104Labor Pool 104Corporate Policies 104Desired Local Image 104Local Employee Incentives 104Existing Methods of Selection 105Potential For Culture Shock 105Training Branch Managers 105Alternative Models 106Compensating Branch Managers 107Wages 107Taxes 107Repatriating Branch Managers 107Reverse Culture Shock 107Ethical Issues 108Female Managers Overseas 108Overseas Assignments as Dumping Grounds 109International Labor Issues 109Managing an International Work Force 109Wages and Benefits 110Job Security and Layoffs 111Labor Productivity 112Technology 112Labor Unions 113MNC Tactics 122Counter-Tactics by Labor 123International Unions 123Codetermination 124Summary 124Discussion Questions 125Bibliography 126Chapter Seven: Managing Global Operations and Technology 127Operations, Technology, and International Competition 127International Production and Operations 128Worldwide Standardization 128Supply 128Control 129Controlling Strategically 129Areas to Control 129Designing the Local Operations System 132Plant Location 133Plant Layout 133Materials Handling 133Staffing 133Production and Operations Management 133Productive Activities 134Supportive Activities 135Just-In-Time System 136International Technology 136Diffusion of Technology 137Technology Development 137Technology Transfer 138Choice of Production Technology 139Pricing Technology Transfers 141Protecting Technology 142Management Information Systems 142MIS in an MNC 142Corporate Reports 143International Data Processing: Integration Issues 144Should International Firms Go Global? 145Summary 146Discussion Questions 147Bibliography 148Chapter Eight: Global Business Cases 149Global Business Cases 149Competitiveness Cases:Myanmar: The Last Global Frontier 150 (G. Jason Goddard) Increasing Market Share at Acme Industries 154 (Van R. Wood VCU et al) Attractiveness of Global Markets 166 (Gregory Keller Wright State) Hedging with Foreign Exchange 175 (Anonymous) Sustainability Cases:Lilly Pharmaceuticals: Triple Bottom Line and Values-Based Leadership 183(Joseph Petrick, Wright State)Corporate Diversity Initiative 190(Anonymous)International Real Estate Investor 196(G. Jason Goddard)Cooperative Workforce Development: Public-Private Sustainable Linkages 206(Jennifer Winner & Riad Ajami)Privilege Capital 213 (Martina Roskova)Glossary 223Index 232 About the Authors 238

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