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Elements of Multinational Strategy

ISBN-10: 354074438X

ISBN-13: 9783540744382

Edition: 2007

Authors: Keith Head

List price: $54.99
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Description:

This textbook on international business integrates the academic study of international trade and foreign direct investment with the actual strategic and operational decisions of exporters and multinational enterprises. The book aims to merge managerial decision making in the internationally oriented firm with the conceptual tools provided by international economics. The book proceeds as follows. Like most firms, we begin with exporting and importing, and tackle issues raised by overseas investment later. We first analyze the gains from trade and then enumerate the many costs of cross-border goods and service transactions. Next we apply the four elements of multinational strategy - factor advantages, trade costs, scale economies, and market sizes - to the decision of which multinational form best suits each firm. We then take up issues of central importance to firms that invest overseas: exchange rate risk, political risk, taxation, and expatriate assignments.
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Book details

List price: $54.99
Copyright year: 2007
Publisher: Springer
Publication date: 11/14/2007
Binding: Paperback
Pages: 208
Size: 6.25" wide x 9.25" long x 0.50" tall
Weight: 0.990
Language: English

Business Across Borders
Overview of International Business
What Makes a Business Transaction "International"?
Types of Transaction
Types of Entities
Six Forms of Separation
Political Separation
Physical Separation
Relational Separation
Environmental Separation
Developmental Separation
Cultural Separation
Looking Forward
References
Gains from Trade
Comparative Advantage in the Short Run
Comparative Advantage in the Long Run
The Shoe Story and Economic Reality
From Comparative to Competitive Advantage
Shoe Story II: Returns to Scale
References
Factor Advantages
Factor Abundance
The Case of Cashmere
Factor Quality
Dynamics of Comparative Advantage
References
Trade Costs
Physical Separation and the Distance Effect
Freight Costs
Time Costs
Travel and Communication Costs
Political Separation and the Border Effect
Estimated Border Effects
Trade Policy Barriers
Currency Conversion Costs
Relational Separation and Transaction Costs
INCO Terms
References
Trade Rules
National Trade Policies
Standard Customs Procedures
Special Import Measures
The World Trade Organization
Dumping
Developments in Antidumping Policy
Antidumping Procedures in the US, EU, and Canada
Strategies for Coping with Antidumping
Subsidies and Countervailing Duties
Safeguards
Disguised Protection
Preferential Trade Agreements
The European Union
The North American Free Trade Agreement
References
Market Adaptation
The Levitt Argument
Examples of Adaptation
Environmental Adaptations
Developmental Adaptations
Cultural Adaptation
Traditions and Imprinting
Conformism and the Social Interaction Effect
Communication Standards
Technical Standards
The Costs of Adaptation
Weighing the Benefits and Costs
Pricing to Market
References
Multinational Formation
Examples of Real World Multinational Forms
Mercedes-Benz
Nestle's Food Products
Mattel's Barbie
Multinational "Business" Strategy
Combining the Four Elements
Multinational Corporate Strategy
Forms for Two Vertically Related Products
Three Product Forms
Revisiting the Exemplars
References
Internalization
Asset Heavy or Asset Light?
Organizing Business Relationships
Problems with Spot Transactions
Relationship-Specific Investment
Downstream Incentive Problems
Information Transfer
Reputation Transfer
Contracts Versus Internalization
Internal Allocation of Resources
References
Competitive Interactions
Motivating Examples
SUVs in the USA
Retail in China
Key Concepts
Sources of Strategic Complementarity
Sources of First-Mover Advantages
Multinational Location Games
References
Foreign Exchange Risk
Exchange Rate Systems
Fundamental Valuation
Parity (Price) Standards
Equilibrium (Quantity) Standards
Responses to Exchange Rate Risk
Political Risk
Political Analysis
Political Strategy
Understand Host-Country Objectives
Catalogue Host-Country Policy Instruments
Calculate Host-Country Bargaining Power
Enhance the Firm's Own Strategic Position
References
International Taxation
Jurisdiction: Who Taxes Whom
Simple Algebra of International Taxation
Taxation of MNCs' Earnings from Abroad
Withholding Taxes
Tax Reduction Strategies
Transfer Pricing
Thin Capitalization
Tax Havens
References
Expatriate Assignment
Typical Features of Expatriate Assignments
Compensation
Expatriate Life
Selection of Managers in Foreign Locations
Advantages of Expats
Advantages of Locals
Strategy and Staffing