International Business in the Global World

Introduction 11

Chapter 1

International Business and Related Fields of Study 15

1.1. Evolution of International Business as a field of study in the age of economic globalisation 16

1.1.1. Introduction 16

1.1.2. The nature and the definition of International Business 17

1.1.3. Evolution and trends of research in the field of International Business 20

1.1.4. New research problems in the field of International Business – challenges for the 21st century 23

1.2. Globalisation processes and their impact on International Business 30

1.2.1. The concept of globalisation – evolution, properties, main actors 30

1.2.2. Liberalisation as a precondition for the development of globalisation 32

1.2.3. Innovation as a prime mover in globalisation development 35

1.2.4. Other factors that impact the development of globalisation 39

1.2.5. The effects of globalisation – in general terms and in relation to IB 41

1.3. Regionalisation and International Business 45

1.3.1. Regionalisation and its rationale 45

1.3.2. The effects of regionalisation 48

1.3.3. The world’s regional integration groupings 50

Chapter 2

Enterprise in International Business 53

2.1. The internationalisation process 54

2.2. Transnational corporations and their role in the globalisation process 55

2.2.1. The classification of international enterprises 55

2.2.2. The history of TNCs 59

2.2.3. The development of corporations 60

2.2.4. The drivers of internationalisation 61

2.2.5. The strategies of internationalisation 63

2.2.6. Forms of foreign expansion 65

2.2.7. Foreign Direct Investment 68

2.2.8. Mergers and Acquisitions in International Business 71

2.2.9. Forms of TNC cooperation on the global market 75

2.3. Network connections between companies in the global economy 78

2.3.1. Virtual enterprises 78

2.3.2. Clusters as a form of cooperation between companies 84

2.4. Small and medium-sized companies in International Business 89

2.4.1. SME definition criteria 90

2.4.2. Forms of internationalisation adopted in the SME sector 93

2.4.3. Determinants and barriers to internationalisation in the SME sector 95

2.4.4. Innovative potential of small and medium-sized companies 98

Chapter 3

International Business Management 103

3.1. Theoretical fundaments of international management 104

3.2. International management 107

3.3. Supply chain 112

3.4. International logistics. 113

3.5. Selected modern methods of management 116

3.5.1. Business Process Reengineering (BPR) 116

3.5.2. Benchmarking 118

3.5.3. Lean Management 119

3.5.4. Kaizen 120

3.5.5. Time Based Management 122

3.5.6. Just in Time 122

3.5.7. Total Quality Management 124

3.5.8. Knowledge Management 126

3.6. The role of the manager in International Business 127

Chapter 4

International Marketing 131

4.1. The role of international marketing 132

4.1.1. The essence and scope of international marketing 132

4.1.2. Concepts of international marketing 133

4.2. International environment of the enterprise 136

4.2.1. The role and importance of the international environment 136

4.2.2. Elements of foreign external environment 137

4.3. Evaluation of opportunities in the international market 148

4.3.1. Problems of foreign market research 148

4.3.2. Identification and analysis of market opportunities 150

4.3.3. Segmentation of foreign markets 152

4.4. The use of marketing instruments on the international market 157

4.4.1. International product offering 157

4.4.2. Pricing policies on international markets 162

4.4.3. International channels of distribution 167

4.4.4. Communication in international marketing 173

Chapter 5

International Business Finance 189

5.1. Concept of international corporate financing 190

5.2. Exchange rate and its formation 191

5.2.1. Concept and functions of the exchange rate 191

5.2.2. Classification of exchange rates 192

5.2.3. Exchange rate regimes – typology and problem of choice 193

5.2.4. Equilibrium on the foreign exchange market 199

5.2.5. Economic and non-economic factors influencing the exchange rate200

5.2.6. Consequences of changes in exchange rate for International Business204

5.3. Role of foreign exchange market in International Business 206

5.3.1. Introduction to foreign exchange (forex) market 206

5.3.2. Transactions in forex market 208

5.3.3. Quotations in forex market 208

5.4. Technical aspects of foreign exchange transactions 210

5.5. Finance management in International Business 210

5.5.1. International capital management 210

5.5.2. Long-term financing of business in international financial markets 211

5.5.3. Short-term financing of business in international financial markets 212

5.5.4. Exchange risk management 213

Chapter 6

Contract as a Tool of International Business 217

6.1. Introduction 218

6.2. The transaction cycle in foreign trade 221

6.3. The concept of contract 223

6.4. Standard forms and general contractual conditions 226

6.5. Contractual clauses 228

6.5.1. Formal and structuring clauses 228

6.5.2. Principal (fundamental) clauses 230

6.5.3. Supplementary clauses 235

6.6. Breach of contractual obligations 242

Chapter 7

International Settlements 247

7.1. Basic regulations of Polish foreign exchange law 248

7.2. Documents determining payment and their characteristics 250

7.2.1. Financial documents 252

7.2.2. Commercial documents 257

7.2.3. Transportation documents 258

7.2.4. Insurance documents 263

7.2.5. Supporting documents 265

7.3. Methods of payment in international trade 266

7.4. Rules for selecting the method of payment for the base price (Incoterms) 271

7.5. Factoring and forfaiting in foreign trade 277

Chapter 8

Phenomena in International Business 281

8.1. Migrations in International Business 282

8.1.1. Concept, types and causes of migration 282

8.1.2. Contemporary directions of migration 284

8.1.3. Migration as a challenge for International Business 286

8.1.4. Summary 292

8.2. Multiculturalism in International Business 293

8.2.1. The idea of multiculturalism 293

8.2.2. Multiculturalism – an international perspective 295

8.2.3. Multicultural corporations 298

8.2.4. Criticism of multiculturalism 301

8.2.5. Summary 303

8.3. The changing consumption model 304

8.3.1. Definition and factors shaping the consumption model 304

8.3.2. The premise for changes in the consumption model 306

8.3.3. Characteristics of the most important trends in world consumption309

8.3.4. Challenges for International Business 315

8.3.5. Summary 318

8.4. Corruption as a challenge for International Business 318

8.4.1. Corruption – definitions, sources and types 318

8.4.2. Corrupt behaviour in International Business 322

8.4.3. Challenges for International Business in the field of corruption 326

8.5. Diversification of environmental standards and activities of international companies 329

Bibliography 341

List of Figures 361

List of Tables 362