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Identifiant IdRef : 212825879
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Langue d'expression : Anglais
Date de naissance :  2007
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Threeeventsledtothewritingofthisbook. In1976,myfather’s- ployer,Exxon,reassignedhimfromheadquartersinHoustontospend 18monthsatEssoBrasileira,inRiodeJaneiro. Duringthesixyears weendedupspendingthere,myfatherwouldoftentalkaboutissues facingmultinationalcorporationsindevelopingcountriesandIwould occasionallylisten. In1984,ItooktheSwarthmoreCollegeseminaron microeconomictheoryo?eredbyBernieSa?ran. Ibecamesoexcited about the use of economic analysis to explain how the world works thatIdecidedtodoaPh. D. inthe?eld. In1992,teaching“Inter- tionalBusinessManagement”forthe?rsttime,Ifoundasubjectwith aplethoraofinterestingquestionsbutverylittleinthewayofac- ceptualframework. Ibegan,workingtogetherwithJohnRies,to?gure outhowtouseeconomicreasoninganddataanalysistoanswerthese questions. Theresultisthistextbook. Mygoalinwritingthisbookhasbeentointegratetheacademic studyofinternationaltradeandforeigndirectinvestment—theworkI dowhenI’mnotteaching—withtheactualstrategicandoperational decisionsofexportersandmultinationalenterprises. Thetextbooksc- rentlyavailableoftenhaveachapterontradetheoryandthenanother onmanufacturinglocations,achapteronforeigndirectinvestmentand a chapter on multinational strategies. Thus, the economics and the managementareboththerebuttheysleepinseparatebedrooms. This isnotonlyrepetitivebutitgivestheimpressionthatmanagementde- sionsarenotdirectlylinkedtoeconomicanalysis. Myhopeistomarry managerialdecisionmakingintheinternationallyoriented?rmwith theconceptualtoolsprovidedbyinternationaleconomics. VIII Preface Additionalmaterials PowerpointorPDFpresentationsareavailableforeachchapteronthe website,http://strategy. sauder. ubc. ca/head/book. Thesepres- tationscontainanumberofcolourpicturesthatcouldnotbeincluded inthetextbookforcostreasons. Thewebsitealsoprovidessampleexam questions. Acknowledgements Mycoauthor,JohnRies,contributedinonewayoranothertoevery chapter. Inadditiontocountlessdiscussionsofthefactsandtheories developedinthisbook,hehasconstructivelycriticizedearlierdrafts. Chapters12and13bene?tedconsiderablyfromtheinputsofmyformer studentDonWagner,nowattheUniversityofPrinceEdwardIsland. Mycurrentgraduatestudent,RanJing,helpedmereviseandaugment chapter9. DiscussionswithLarryWoskabouthisbusinessexperiences helpedmeshapethetransactioncosttime-lineinchapter4. Iwouldalsoliketothankmanyundergraduatestudentsoverthe yearsfor?ndingerrorsbothsmallandlarge:JamesKondopulosand AngelineLeong-Sit(2000);KaiHui,AustinMok,andJohnNg(2001); EmilyThorner(2002);MargaretLung,GregPerih,andAaronAdkins (2003);SurinaSproul,BenjaminRameau,MandyTam,EvanCa- bell, Vivian Feng, Tara Amiri-Khaledi, Sarah Mertin, Noah Carter, Andrew Shankie, Jina Kim, and Cedric Wong (2004); Jocelyn Tan, Eric Widjaja, and Tammy Yoon (2006); Emma Carswell-Engle, - iceChan,BernadetteCheung,JudyFeng,KaterinaGoncharuk,Irene Han,PolinaKonstantinova,JillMacDonald,BobbyMovassaghi,F- nazRameshni,DavidSuozzi,LeoTam,EricTang,JeanWhitaker,and RuoXu(2007). Vancouver KeithHead August2007 Contents 1 BusinessAcrossBorders. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1. 1 OverviewofInternationalBusiness. . . . . . . . . . . . . . . . . . . 1 1. 1. 1 What Makes a Business Transaction “International”?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1. 1. 2 TypesofTransaction. . . . . . . . . . . . . . . . . . . . . . . . . . 3 1. 1. 3 TypesofEntities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1. 2 SixFormsofSeparation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1. 2. 1 PoliticalSeparation. . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1. 2. 2 PhysicalSeparation. . . . . . . . . . . . . . . . . . . . . . . . . . . 9 1. 2. 3 RelationalSeparation . . . . . . . . . . . . . . . . . . . . . . . . . 11 1. 2. 4 EnvironmentalSeparation . . . . . . . . . . . . . . . . . . . . . 12 1. 2. 5 DevelopmentalSeparation . . . . . . . . . . . . . . . . . . . . . 12 1. 2. 6 CulturalSeparation. . . . . . . . . . . . . . . . . . . . . . . . . . . 18 1. 3 LookingForward. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2 GainsfromTrade. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 2. 1 ComparativeAdvantageintheShortRun. . . . . . . . . . . . . 26 2. 2 ComparativeAdvantageintheLongRun . . . . . . . . . . . . . 28 2. 3 TheShoeStoryandEconomicReality. . . . . . . . . . . . . . . . 31 2. 4 FromComparativetoCompetitiveAdvantage . . . . . . . . . 32 2. 5 ShoeStoryII:ReturnstoScale . . . . . . . . . . . . . . . . . . . . . . 33 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 3 FactorAdvantages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 3. 1 FactorAbundance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 3. 2 TheCaseofCashmere. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 3. 3 FactorQuality. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 X Contents 3. 4 DynamicsofComparativeAdvantage. . . . . . . . . . . . . . . . . 48 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 4 TradeCosts

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