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Contents

Preface 29 About the Authors

39

PART

ONE

BACKGROUND FOR INTERNATIONAL

BUSINESS

44

1

Globalization and International Business

44

CASE: The Global Playground

45

Introduction

48

What Is International Business7.

49

The Forces Driving Globalization Factors in Increased Globalization

50

51

What's Wrong with Globalization? Threats to National Sovereignty

56 56

Economic Growth and Environmental Stress

57

Growing Income Inequality

57

| Point ^J3ffi^S^^3

's Offshoring Good Strategy?

58

Why Companies Engage in InternationaLBusiness

60

Expanding Sales

60 ,

Acquiring Resources

Minimizing Risk

60

60

Modes of Operations in International Business

61

Merchandise Exports and Imports

62

Service Exports and Imports

62

Investments

63

Types of International Organizations

63

Looking to the Future:

Three Ways of Looking at Globalization

C A S E : Carnival Cruise Lines: Exploiting a Sea of Global

Opportunity

69

Summary Key Terms

74 75

Endnotes An Atlas

75 78

Map Index

86

Why International Business Differs from Domestic

Business

64

67

Physical and Social Factors The Competitive Environment

65

68

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