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International Business
17th Edition
ST
UV
SOLUTIONS
IA
MANUAL
_A
PP
John Daniels, Lee Radebaugh, Daniel Sullivan
RO
Comprehensive Solutions Manual for Instructors
and Students
VE
||| ||| || ||| || | || ||| | || ||| |
9780135899915
D?
© John Daniels, Lee Radebaugh & Daniel Sullivan. All rights
reserved. Reproduction or distribution without permission is
prohibited.
© MEDGEEK
, TABLE OF CONTENTS
Solutions Manual – International Business (17th Edition)
Authors: John Daniels, Lee Radebaugh, and Daniel Sullivan
ISBN: 9780135899915
ST
PART 1: BACKGROUND FOR INTERNATIONAL BUSINESS
Chapter 1: Globalization and International Business
UV
PART 2: COMPARATIVE ENVIRONMENTAL FRAMEWORKS
Chapter 2: The Cultural Environments Facing Business
Chapter 3: The Political and Legal Environments Facing Business
Chapter 4: The Economic Environments Facing Businesses
Chapter 5: Globalization and Society
IA
PART 3: THEORIES AND INSTITUTIONS: TRADE AND INVESTMENT
Chapter 6: International Trade and Factor Mobility Theory
_A
Chapter 7: Governmental Influence on Trade
Chapter 8: Cross-National Cooperation and Agreements
PART 4: WORLD FINANCIAL ENVIRONMENT
PP
Chapter 9: Global Foreign-Exchange Markets
Chapter 10: The Determination of Exchange Rates
Chapter 11: Global Capital Markets
PART 5: GLOBAL STRATEGY, STRUCTURE, AND IMPLEMENTATION
RO
Chapter 12: The Strategy of International Business
Chapter 13: Country Evaluation and Selection
Chapter 14: Export and Import
Chapter 15: Direct Investment and Collaborative Strategies
Chapter 16: The Organization of International Business
VE
PART 6: MANAGING INTERNATIONAL OPERATIONS
Chapter 17: Marketing Globally
Chapter 18: Global Operations and Supply-Chain Management
D?
Chapter 19: International Accounting and Finance Issues
Chapter 20: International Human Resource Management
, PART ONE
BACKGROUND FOR INTERNATIONAL BUSINESS
Chapter 1
ST
Globalization and International Business
UV
OBJECTIVES
1-1 Explain why and how the study of international business (IB) is important
1-2 Understand the relationship between globalization and IB
1-3 Grasp the forces driving globalization and IB
1-4 Discuss the major criticisms of globalization
IA
1-5 Assess the major reasons companies seek to create value by engaging in IB
1-6 Define and illustrate the different operating modes for companies to accomplish their
international objectives
_A
1-7 Recognize why national differences in companies' external environments affect how they
may best improve their IB performance
CHAPTER OVERVIEW
PP
Globalization has become a major socioeconomic force and topic of debate in the twenty-first
century. Chapter One examines the forces that are driving this phenomenon, as well as the often-
passionate criticisms of the process. The chapter reviews the objectives that firms pursue when
they engage in international business activities and describes the various modes of entry that may
be used. It also notes the terminology that has come into existence as new types of organizations
RO
have evolved. The chapter concludes with a discussion of the conditions in a company's external
environment that may affect its international operations.
CHAPTER OUTLINE
VE
OPENING CASE: THE GLOBALIZED BUSINESS OF SPORTS [see Map 1.1]
Although not everyone agrees that the unbridled globalization of professional sports is all for the
good, the process and possibilities are definitely far reaching. Today's satellite television
D?
broadcasts enable fans to watch top players and teams in nearly any sport from almost anywhere
on earth. Professional teams scour the world to find and develop the most talented athletes, and
players forsake home country allegiances in their pursuit of the world's highest salaries. Further,
the more people that tournaments can attract through attendance and television, the more money
that sponsors and advertisers are willing to pay—and the greater the likelihood that those
sponsors and advertisers will have business operations that span the globe. In addition, sports and
2-1
Copyright © 2022 Pearson Education, Inc.
, nonsports companies alike pay famous athletes and teams generous sums to endorse their
products. Successful teams have opened shops both domestically and internationally to sell
souvenirs bearing their logos and may make more money on merchandise than from TV rights
and sponsorships combined. Most recently, as teams and leagues have begun to seek income
opportunities outside their home countries, foreign investors have acquired a U.S. baseball team;
ST
another group of foreign investors acquired controlling interest in a British soccer (football)
team, and the National Football League (NFL) of the United States underwrites flag football
games in Chinese schools and is playing some regular season NFL games in Europe. Map 1.1
outlines national sports in a variety of countries and can be used to discuss how culture impacts
UV
globalization.
Questions
1-1 Professional athlete A is a star. Professional athlete B is an average player. How has the
globalization of professional sports affected each of these both positively and negatively?
IA
Being a star, professional athlete A can become a target for endorsement deals from local
and international companies and organizations that would use such an athlete in advertising.
They also get substantial financial contracts (salaries and bonuses) from their clubs. The
_A
endorsements and salary deals get more lucrative if professional athlete A reaches strong
positive visibility in major sport events or if he/she develops a global brand such as
Cristiano Ronaldo. Advertisers will pay them considerably for endorsing a product or
service. However, the same athlete might be dropped if his/her performance decline or if
scandals damage his/her image.
PP
For the average player such as professional athlete B, professional sports globalization has
afforded them higher salaries than before. Globalization has led to a rise in professional
sports interest and viewership and, consequently, robust growth in professional athletes'
salaries. At the same time, the fierce competition between athletes and the growing demands
RO
from clubs and fans have put intense pressure on athletes to perform regularly. Today's
athletes have little room for mistakes. (LO1-2: Understand the relationship between
globalization and IB, AACSB: Analytical Skills).
1-2 As you read the chapter, identify and show an example of each international mode of
VE
operations that is illustrated in the globalization of professional sports.
Sport is a major source of service exports and imports. Countries compete to organize major
global events such as the world cup or the Olympics for many business and political reasons.
Chief among them is tourism. Let's say that some American fans fly on Qatar Airlines to
D?
watch the upcoming world cup in Qatar in 2022. Their travel expenses in Qatar are service
exports for Qatar and service imports for the U.S. (LO1-2: Understand the relationship
between globalization and IB, AACSB: Analytical Skills).
Teaching Tips: Carefully review the PowerPoint slides for Chapter One. A good
Internet source of information on globalization can be found at
2-2
Copyright © 2022 Pearson Education, Inc.
International Business
17th Edition
ST
UV
SOLUTIONS
IA
MANUAL
_A
PP
John Daniels, Lee Radebaugh, Daniel Sullivan
RO
Comprehensive Solutions Manual for Instructors
and Students
VE
||| ||| || ||| || | || ||| | || ||| |
9780135899915
D?
© John Daniels, Lee Radebaugh & Daniel Sullivan. All rights
reserved. Reproduction or distribution without permission is
prohibited.
© MEDGEEK
, TABLE OF CONTENTS
Solutions Manual – International Business (17th Edition)
Authors: John Daniels, Lee Radebaugh, and Daniel Sullivan
ISBN: 9780135899915
ST
PART 1: BACKGROUND FOR INTERNATIONAL BUSINESS
Chapter 1: Globalization and International Business
UV
PART 2: COMPARATIVE ENVIRONMENTAL FRAMEWORKS
Chapter 2: The Cultural Environments Facing Business
Chapter 3: The Political and Legal Environments Facing Business
Chapter 4: The Economic Environments Facing Businesses
Chapter 5: Globalization and Society
IA
PART 3: THEORIES AND INSTITUTIONS: TRADE AND INVESTMENT
Chapter 6: International Trade and Factor Mobility Theory
_A
Chapter 7: Governmental Influence on Trade
Chapter 8: Cross-National Cooperation and Agreements
PART 4: WORLD FINANCIAL ENVIRONMENT
PP
Chapter 9: Global Foreign-Exchange Markets
Chapter 10: The Determination of Exchange Rates
Chapter 11: Global Capital Markets
PART 5: GLOBAL STRATEGY, STRUCTURE, AND IMPLEMENTATION
RO
Chapter 12: The Strategy of International Business
Chapter 13: Country Evaluation and Selection
Chapter 14: Export and Import
Chapter 15: Direct Investment and Collaborative Strategies
Chapter 16: The Organization of International Business
VE
PART 6: MANAGING INTERNATIONAL OPERATIONS
Chapter 17: Marketing Globally
Chapter 18: Global Operations and Supply-Chain Management
D?
Chapter 19: International Accounting and Finance Issues
Chapter 20: International Human Resource Management
, PART ONE
BACKGROUND FOR INTERNATIONAL BUSINESS
Chapter 1
ST
Globalization and International Business
UV
OBJECTIVES
1-1 Explain why and how the study of international business (IB) is important
1-2 Understand the relationship between globalization and IB
1-3 Grasp the forces driving globalization and IB
1-4 Discuss the major criticisms of globalization
IA
1-5 Assess the major reasons companies seek to create value by engaging in IB
1-6 Define and illustrate the different operating modes for companies to accomplish their
international objectives
_A
1-7 Recognize why national differences in companies' external environments affect how they
may best improve their IB performance
CHAPTER OVERVIEW
PP
Globalization has become a major socioeconomic force and topic of debate in the twenty-first
century. Chapter One examines the forces that are driving this phenomenon, as well as the often-
passionate criticisms of the process. The chapter reviews the objectives that firms pursue when
they engage in international business activities and describes the various modes of entry that may
be used. It also notes the terminology that has come into existence as new types of organizations
RO
have evolved. The chapter concludes with a discussion of the conditions in a company's external
environment that may affect its international operations.
CHAPTER OUTLINE
VE
OPENING CASE: THE GLOBALIZED BUSINESS OF SPORTS [see Map 1.1]
Although not everyone agrees that the unbridled globalization of professional sports is all for the
good, the process and possibilities are definitely far reaching. Today's satellite television
D?
broadcasts enable fans to watch top players and teams in nearly any sport from almost anywhere
on earth. Professional teams scour the world to find and develop the most talented athletes, and
players forsake home country allegiances in their pursuit of the world's highest salaries. Further,
the more people that tournaments can attract through attendance and television, the more money
that sponsors and advertisers are willing to pay—and the greater the likelihood that those
sponsors and advertisers will have business operations that span the globe. In addition, sports and
2-1
Copyright © 2022 Pearson Education, Inc.
, nonsports companies alike pay famous athletes and teams generous sums to endorse their
products. Successful teams have opened shops both domestically and internationally to sell
souvenirs bearing their logos and may make more money on merchandise than from TV rights
and sponsorships combined. Most recently, as teams and leagues have begun to seek income
opportunities outside their home countries, foreign investors have acquired a U.S. baseball team;
ST
another group of foreign investors acquired controlling interest in a British soccer (football)
team, and the National Football League (NFL) of the United States underwrites flag football
games in Chinese schools and is playing some regular season NFL games in Europe. Map 1.1
outlines national sports in a variety of countries and can be used to discuss how culture impacts
UV
globalization.
Questions
1-1 Professional athlete A is a star. Professional athlete B is an average player. How has the
globalization of professional sports affected each of these both positively and negatively?
IA
Being a star, professional athlete A can become a target for endorsement deals from local
and international companies and organizations that would use such an athlete in advertising.
They also get substantial financial contracts (salaries and bonuses) from their clubs. The
_A
endorsements and salary deals get more lucrative if professional athlete A reaches strong
positive visibility in major sport events or if he/she develops a global brand such as
Cristiano Ronaldo. Advertisers will pay them considerably for endorsing a product or
service. However, the same athlete might be dropped if his/her performance decline or if
scandals damage his/her image.
PP
For the average player such as professional athlete B, professional sports globalization has
afforded them higher salaries than before. Globalization has led to a rise in professional
sports interest and viewership and, consequently, robust growth in professional athletes'
salaries. At the same time, the fierce competition between athletes and the growing demands
RO
from clubs and fans have put intense pressure on athletes to perform regularly. Today's
athletes have little room for mistakes. (LO1-2: Understand the relationship between
globalization and IB, AACSB: Analytical Skills).
1-2 As you read the chapter, identify and show an example of each international mode of
VE
operations that is illustrated in the globalization of professional sports.
Sport is a major source of service exports and imports. Countries compete to organize major
global events such as the world cup or the Olympics for many business and political reasons.
Chief among them is tourism. Let's say that some American fans fly on Qatar Airlines to
D?
watch the upcoming world cup in Qatar in 2022. Their travel expenses in Qatar are service
exports for Qatar and service imports for the U.S. (LO1-2: Understand the relationship
between globalization and IB, AACSB: Analytical Skills).
Teaching Tips: Carefully review the PowerPoint slides for Chapter One. A good
Internet source of information on globalization can be found at
2-2
Copyright © 2022 Pearson Education, Inc.
