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Preface vii
the completely updated Instructor’s Manual, where we also provide some multiple-choice
and true-false questions that draw directly from the chapters’ World of International
Management topic matter for instructors who want to include this material in their tests.
The use and application of cases is further enhanced in this edition. All cases have
been updated and several new ones have been added. The short within-chapter country
case illustrations—“In the International Spotlight”—can be read and discussed in class.
These have all been revised and two have been added—Turkey and Indonesia. The revised
or newly added “Integrative Cases” positioned at the end of each main part of the text
were created exclusively for this edition and provide opportunities for reading and anal-
ysis outside of class. Review questions provided for each case are intended to facilitate
lively and productive written analysis or in-class discussion. Our “Brief Integrative Cases”
typically explore a specific situation or challenge facing an individual or team. Our lon-
ger and more detailed “In-Depth Integrative Cases” provide a broader discussion of the
challenges facing a company. These two formats allow maximum flexibility so that
instructors can use the cases in a tailored and customized fashion. Accompanying many
of the in-depth cases are short exercises that can be used in class to reinforce both the
substantive topic and students’ skills in negotiation, presentation, and analysis. The cases
have been extensively updated and several are new to this edition. Cases concerning the
global AIDS epidemic, Dansko, Russell Athletics/Fruit of the Loom, Euro Disneyland
and Disney Asia, Google in China, IKEA, HSBC, Nike, Walmart, Tata, AirAsia, Sony,
Danone, Chiquita, Coca-Cola, and others are unique to this book and specific to this
edition. Of course, instructors also have access to Create (www.mcgraw-hillcreate.com),
McGraw-Hill’s extensive content database, which includes thousands of cases from major
sources such as Harvard Business School, Ivey, Darden, and NACRA case databases.
Along with the new or updated “International Management in Action” boxed appli-
cation examples within each chapter and other pedagogical features at the end of each
chapter (i.e., “Key Terms,” “Review and Discussion Questions,” “The World of Interna-
tional Management—Revisited,” and “Internet Exercise”), the end-of-part brief and in-
depth cases and the end-of-book skill-building exercises and simulations on the Online
Learning Center complete the package.
To help instructors teach international management, this text is accompanied by a
revised and expanded Instructor’s Resource Manual, Test Bank, and PowerPoint Slides,
all of which are available password protected on the Online Learning Center at www.
mhhe.com/luthans9e.
Another important innovation is carried over and updated from the 8th edition: we
have provided instructors with a guide to online publicly available videos, many available
on YouTube, that link directly to chapter themes. These short clips give instructors an
opportunity to use online visual media in conjunction with traditional lecture, discussion,
and PowerPoint presentations. Our guide includes the name, short description, and link
for the videos, which we will keep updated on the book website.
International Management is generally recognized to be the first “mainstream” text
of its kind. Strategy casebooks and specialized books in organizational behavior, human
resources, and, of course, international business, finance, marketing, and economics pre-
ceded it, but there were no international management texts before this one, and it remains
the market leader. We have had sustainability because of the effort and care put into the
revisions. We hope you agree that this ninth edition continues the tradition and remains
the “world-class” text for the study of international management.
Acknowledgments
We would like to acknowledge those who have helped to make this book a reality. We
will never forget the legacy of international management education in general and for
this text in particular provided by our departed colleague Richard M. Hodgetts. Special
thanks also go to our growing number of colleagues throughout the world who have given
us many ideas and inspired us to think internationally. Closer to home, Fred Luthans would
viii Preface
like to give special recognition to two international management scholars: Henry H.

Albers, former Chair of the Management Department at the University of Nebraska and
former Dean at the University of Petroleum and Minerals, Saudi Arabia, to whom previ-
ous editions of this book were dedicated; and Sang M. Lee, former Chair of the Manage-
ment Department at Nebraska, founding and current President of the Pan Pacific Business
Association, and close colleague on many ventures around the world over the past
30 years. Jonathan Doh would like to thank the Villanova School of Business and its
leadership, especially Dean Pat Maggitti, Vice Dean Daniel Wright, and Herb Rammrath
who generously endowed the Chair in International Business Jonathan now holds. Also,
for this new ninth edition we would like to thank Ben Littell, who did much of the
research and drafting of the chapter opening World of International Management features
and provided extensive research assistance for other revisions to the book.
In addition, we would like to acknowledge the help that we received from the many
reviewers from around the globe, whose feedback guided us in preparing the ninth edition
of the text. These include:
Thomas M. Abbott, Post University Jae C. Jung, University of Missouri–

David Elloy, Gonzaga University Kansas City
James Gran, Buena Vista University Emeric Solymossy, Western Illinois
Julie Huang, Rio Hondo College University.
Our thanks, too, to the reviewers of previous editions of the text:
Yohannan T. Abraham, Southwest Missouri Joseph Richard Goldman, University of

State University Minnesota
Janet S. Adams, Kennesaw State University Robert T. Green, University of Texas at
Irfan Ahmed, Sam Houston State University Austin
Chi Anyansi-Archibong, North Carolina Annette Gunter, University of Central
A&T State University Oklahoma
Kibok Baik, James Madison University Jerry Haar, Florida International
R. B. Barton, Murray State University University–Miami
Lawrence A. Beer, Arizona State University Jean M. Hanebury, Salisbury State
Koren Borges, University of North Florida University
Tope A. Bello, East Carolina University Richard C. Hoffman, Salisbury State
University
Mauritz Blonder, Hofstra University
Johan Hough, University of South Africa
Gunther S. Boroschek, University of
Massachusetts–Boston Steve Jenner, California State
University–Dominguez Hills
Charles M. Byles, Virginia Commonwealth
University James P. Johnson, Rollins College
Constance Campbell, Georgia Southern Marjorie Jones, Nova Southeastern
University University
Scott Kenneth Campbell, Georgia College Ann Langlois, Palm Beach Atlantic
& State University University
M. Suzanne Clinton, University of Central Curtis Matherne III, East Tennessee State
Oklahoma University
Helen Deresky, SUNY Plattsburgh Alan N. Miller, University of Nevada,
Dr. Dharma deSilva, Center for Interna- Las Vegas
tional Business Advancement (CIBA) Mohd Nazari Ismail, University of Malaya
Val Finnigan, Leeds Metropolitan University Robert Kuhne, Hofstra University
David M. Flynn, Hofstra University Christine Lentz, Rider University
Jan Flynn, Georgia College and State Ben Lever III, College of Charleston
University Robert C. Maddox, University of Tennessee
Preface ix
Douglas M. McCabe, Georgetown Owen Sevier, University of Central

University Oklahoma
Jeanne M. McNett, Assumption College Jane H. Standford, Texas A&M University–
Lauryn Migenes, University of Central Kingsville
Florida Dale V. Steinmann, San Francisco State
Ray Montagno, Ball State University University
Rebecca J. Morris, University of Randall Stross, San Jose State University
Nebraska–Omaha George Sutija, Florida International
Ernst W. Neuland, University of Pretoria University
William Newburry, Rutgers Business Deanna Teel, Houston Community
School College
Yongsun Paik, Loyola Marymount David Turnipseed, University of South
University Alabama–Mobile
Valerie S. Perotti, Rochester Institute of Katheryn H. Ward, Chicago State University
Technology Li Weixing, University of Nebraska–
Richard B. Peterson, University of Lincoln
Washington Aimee Wheaton, Regis College
Suzanne J. Peterson, University of Timothy Wilkinson, University of Akron
Nebraska–Lincoln Marion M. White, James Madison
Joseph A. Petrick, Wright State University University
Juan F. Ramirez, Nova Southeastern George Yacus, Old Dominion University
University Corinne Young, University of Tampa
Richard David Ramsey, Southeastern Zhe Zhang, University of Central
Louisiana University Florida–Orlando
Mansour Sharif-Zadeh, California State Anatoly Zhuplev, Loyola Marymount
Polytechnic University–Pomona University
Finally, thanks to the team at McGraw-Hill who worked on this book: Paul Ducham,
Managing Director; Anke Weekes, Senior Brand Manager; Kelly Delso, Senior Devel-
opmental Editor; Lori Bradshaw, Managing Developmental Editor; Michael Gedatus,
Marketing Manager; and Jessica Portz, Project Manager. Last but by no means least, we
greatly appreciate the love and support provided by our families.
Fred Luthans and Jonathan P. Doh

LUTHANS DOH
Doh
The ninth
edition of
New and Enhanced Themes
International
Management: • Thoroughly revised and updated chapters to reflect the
most critical issues for international managers.
Culture, Strategy, and • Greater attention to and focus on global sustainability
and sustainable management practices and their impact
Behavior is still on international management.
setting the standard.

• New or revised opening World of International Manage-
ment features written by the authors on current international
management challenges; these mini-cases were prepared
Current authors Fred expressly for this edition and are not available elsewhere.
Luthans and • Discussions of the impact of the global economic recession
on international management in the opening chapter and
throughout the book, and the aftermath and ongoing chal-
Jonathan P. Doh have
lenges associated with the “Arab Spring” (in Chapter 2).
taken care to retain • New and updated discussions of project GLOBE and its
importance for international management.
the effective • Greater emphasis on emerging markets and developing
countries, and the increasing influence of emerging
foundation gained markets multinationals on global competition.
from research and Thoroughly Revised and Updated

practice over the Chapter Content
past decades. At the • New or revised opening WIM discussions on topics includ-
ing the global influences of social media, the role of social
same time, they have networking in the Arab Spring, sustainability as a global
competitive advantage, Apple vs. Samsung, Amazon vs.
fully incorporated Alibaba, global trends in the automotive and pharmaceuti-
cal industries, managing global teams, offshoring and cul-
important new and ture, and many other subjects. These features were written
expressly for this edition and are not available elsewhere.
emerging
• Updated and strengthened emphasis on ethics, social
responsibility, and sustainability.
developments that
• Extensive coverage of Project GLOBE, its relationship
to other cultural frameworks, and its application to inter-
have changed what
national management practice (Chapters 4, 13).
international managers • Revised or new “In the International Spotlight” inserts
which profile the key economic and political issues rel-
are currently facing and evant to managers in specific countries, including new
spotlights on Turkey and Indonesia.
likely to face in the
• Greater coverage of the challenges and opportunities for
international strategy targeted to the developing “base of
coming years. the pyramid” economies (Chapter 8, and Tata cases).
x
CONTINUES TO SET THE STANDARD. . .
Thoroughly Updated and/or New Cases,

Inserts, and Exercises
• New and/or updated country spotlights, “International Management

in Action” features.
• Thoroughly updated cases (not available elsewhere): Pharmaceutical
Companies, Intellectual Property, and the Global AIDS Epidemic;
Advertising or Free Speech? The Case of Nike and Human Rights;
Beyond Tokyo: Disney’s Expansion In Asia; HSBC in China; Coca
Cola in India; Walmart’s Global Strategies; Can Sony Regain its
Innovative Edge? The OLED Project; Tata “Nano”: The People’s
Car; The Ascendance of AirAsia: Building a Successful Budget
Airline; and Chiquita’s Global Turnaround.
• Brand new end-of-part cases developed exclusively for this edition
(not available elsewhere): Dansko puts its Right Foot Forward, Google
in China: Protecting Property and Rights; IKEA’s Global Renovations.
Totally Revised Instructor and Student Support

The following instructor and student support materials can be found on the
Online Learning Center (OLC) for the Ninth Edition. You can access the
OLC at www.mhhe.com/luthans9e.
• The Instructor’s Manual offers a summary of Learning Objectives

and teaching outline with lecture notes and teaching tips, as well as
suggested answers to questions found throughout and at the conclu-
sion of each chapter. Suggested answers are also provided for all the
cases found in the book.
• The TestBank is offered in both Word and EZ Test formats and
offers over 1,000 test items consisting of true/false, multiple choice,
and essay. Answers are provided for all testbank questions.
• PowerPoint Presentations consisting of 30 slides per chapter give
instructors talking points, feature exhibits from the text, and are
summarized with a review and discussion slide.
• Student Quizzes are provided for each chapter and give students
feedback to help them understand where additional study is required.
• A guide to videos available online, with title, short description, and url.
• Create: Instructors can now tailor their teaching resources to match the
way they teach! With McGraw-Hill Create, www.mcgrawhillcreate.
com, instructors can easily rearrange chapters, combine material from
other content sources, and quickly upload and integrate their own con-
tent, like course syllabi or teaching notes. Find the right content in
Create by searching through thousands of leading McGraw-Hill text-
books. Arrange the material to fit your teaching style. Order a Create
book and receive a complimentary print review copy in 3–5 business
xi
xii Continues to Set the Standard. . .
days or a complimentary electronic review copy (echo) via e-mail within one
hour. Go to www.mcgrawhillcreate.com today and register.
McGraw-Hill Campus™
McGraw-Hill Campus is a new one-stop teaching and learning experience available to
users of any learning management system.
This institutional service allows faculty and students to enjoy single sign-on (SSO)
access to all McGraw-Hill Higher Education materials, including the award-winning
McGraw-Hill Connect platform, from directly within the institution’s website. With
McGraw-Hill Campus, faculty receive instant access to teaching materials (e.g., eText-
books, test banks, PowerPoint slides, learning objectives, etc.), allowing them to browse,
search, and use any instructor ancillary content in our vast library at no additional cost
to instructor or students. In addition, students enjoy SSO access to a variety of free
content and subscription-based products (e.g., McGraw-Hill Connect). With McGraw-Hill
Campus enabled, faculty and students will never need to create another account to access
McGraw-Hill products and services. Learn more at www.mhcampus.com.
Assurance of Learning Ready

Many educational institutions today focus on the notion of assurance of learning, an
important element of some accreditation standards. International Business is designed
specifically to support instructors’ assurance of learning initiatives with a simple yet
powerful solution. Each test bank question for International Business maps to a specific
chapter learning objective listed in the text. Instructors can use our test bank software,
EZ Test and EZ Test Online, to easily query for learning objectives that directly relate
to the learning outcomes for their course. Instructors can then use the reporting features
of EZ Test to aggregate student results in similar fashion, making the collection and
presentation of assurance of learning data simple and easy.
AACSB Tagging
McGraw-Hill Education is a proud corporate member of AACSB International. Under-
standing the importance and value of AACSB accreditation, International Business rec-
ognizes the curricula guidelines detailed in the AACSB standards for business accredita-
tion by connecting selected questions in the text and the test bank to the six general
knowledge and skill guidelines in the AACSB standards. The statements contained in
International Business are provided only as a guide for the users of this textbook. The
AACSB leaves content coverage and assessment within the purview of individual schools,
the mission of the school, and the faculty. While the International Business teaching
package makes no claim of any specific AACSB qualification or evaluation, we have
within International Business labeled selected questions according to the six general
knowledge and skills areas.
About the Authors
FRED LUTHANS is University and the George Holmes Distinguished Professor of Man-
agement at the University of Nebraska–Lincoln. He is also Chair of the Master Research
Council for HUMANeX, Inc. He received his BA, MBA, and PhD from the University of
Iowa, where he received the Distinguished Alumni Award in 2002. While serving as an
officer in the U.S. Army from 1965–1967, he taught leadership at the U.S. Military Acad-
emy at West Point. He has been a visiting scholar at a number of colleges and universities
and has lectured in most European and Pacific Rim countries. He has taught international
management as a visiting faculty member at the universities of Bangkok, Hawaii, Henley
in England, Norwegian Management School, Monash in Australia, Macau, Chemnitz in
the former East Germany, and Tirana in Albania. A past president of the Academy of
Management, in 1997 he received the Academy’s Distinguished Educator Award. In 2000
he became an inaugural member of the Academy’s Hall of Fame for being one of the “Top
Five” all-time published authors in the prestigious Academy journals. Currently, he is co-
editor-in-chief of the Journal of World Business, editor of Organizational Dynamics, co-
editor of Journal of Leadership and Organization Studies, and the author of numerous
books. His book Organizational Behavior (Irwin/McGraw-Hill) is now in its 12th edition
and the groundbreaking book Psychological Capital (Oxford University Press) with Carolyn
Youssef and Bruce Avolio will be out in its second edition in 2014. He is one of very
few management scholars who is a Fellow of the Academy of Management, the Decision
Sciences Institute, and the Pan Pacific Business Association, and he has been a member
of the Executive Committee for the Pan Pacific Conference since its beginning 30 years
ago. This committee helps to organize the annual meeting held in Pacific Rim countries.
He has been involved with some of the first empirical studies on motivation and behavioral
management techniques and the analysis of managerial activities in Russia; these articles
have been published in the Academy of Management Journal, Journal of International
Business Studies, Journal of World Business, and European Management Journal. Since
the very beginning of the transition to market economies after the fall of communism in
Eastern Europe, he has been actively involved in management education programs spon-
sored by the U.S. Agency for International Development in Albania and Macedonia, and
in U.S. Information Agency programs involving the Central Asian countries of Kazakhstan,
Kyrgyzstan, and Tajikistan. For example, Professor Luthans’ recent international research
involves his construct of positive psychological capital (PsyCap). He and colleagues have
published their research demonstrating the impact of Chinese workers’ PsyCap on their
performance in the International Journal of Human Resource Management and Manage-
ment and Organization Review. He is applying his positive approach to positive organiza-
tional behavior (POB), PsyCap, and authentic leadership to effective global management
and has recently been the keynote at programs in China (several times), Malaysia, Korea,
Indonesia, England, Norway, Finland, South Africa, and soon Italy.
JONATHAN P. DOH is the Herbert G. Rammrath Chair in International Business, found-

ing Director of the Center for Global Leadership, and Professor of Management at the
Villanova School of Business. Jonathan teaches, does research, and serves as an executive
instructor and consultant in the areas of international strategy and corporate responsibil-
ity and serves as an occasional executive educator for the Aresty Institute of Executive
Education at the Wharton Business School. Previously, he was on the faculty of American
and Georgetown Universities and a senior trade official with the U.S. government. Jonathan
is author or co-author of more than 75 refereed articles published in the top international
xiii
xiv About the Authors
business and management journals, 30 chapters in scholarly edited volumes, and more
than 75 conference papers. Recent articles have appeared in journals such as Academy
of Management Review, California Management Review, Journal of International Busi-
ness Studies, Journal of World Business, Organization Science, Sloan Management
Review, and Strategic Management Journal. He is co-editor and contributing author of
Globalization and NGOs (Praeger, 2003) and Handbook on Responsible Leadership and
Governance in Global Business (Elgar, 2005) and co-author of the previous edition of
International Management: Culture, Strategy, and Behavior (8th ed., McGraw-Hill/Irwin,
2012), the best-selling international management text. His current research focus is on
strategy for emerging markets, global corporate responsibility, and offshore outsourcing
of services. His most recent scholarly books are Multinationals and Development (with
Alan Rugman, Yale University Press, 2008), NGOs and Corporations: Conflict and Col-
laboration (with Michael Yaziji, Cambridge University Press, 2009) and Aligning for
Advantage: Competitive Strategy for the Social and Political Arenas (with Tom Lawton
and Tazeeb Rajwani, Oxford University Press, 2014). He is co-Editor-in-Chief of MRN
International Environment of Global Business (SSRN Journal), Senior Editor of Journal
of World Business, Associate Editor of Business & Society, and Consulting Editor of
Long Range Planning. Beginning in January of 2015 he will assume the position of
Editor-in-Chief of Journal of World Business. Jonathan has also developed more than a
dozen original cases and simulations published in books, journals, and case databases
and used at many leading global universities. He has been a consultant or executive
instructor for ABB, Anglo American, Bodycote, Bosch, China Minsheng Bank, Hana
Financial, HSBC, Ingersoll Rand, Medtronic, Shanghai Municipal Government, Siam
Cement, the World Economic Forum, and Deloitte Touche, where he served as senior
external adviser to the Global Energy Resource Group. Jonathan is part of the Executive
Committee of the Academy of Management Organizations and Natural Environment
Division with increasing responsibilities culminating in the chair of the division in 2016.
He was ranked among the top 15 most prolific international business scholars in the
world for the period 2001–2009 (Lahiri and Kumar, 2012). He holds a PhD in strategic
and international management from George Washington University.
Brief Contents
Environmental Foundation Part One
1 Globalization and International Linkages 2

2 The Political, Legal, and Technological Environment 36
3 Ethics, Social Responsibility, and Sustainability 62
Brief Integrative Case 1.1: Advertising or Free Speech?
The Case of Nike and Human Rights 87
Brief Integrative Case 1.2: Dansko Puts Its
Right Foot Forward 89
In-Depth Integrative Case 1.1: Student Advocacy and
“Sweatshop” Labor: The Case of Russell Athletic 92
In-Depth Integrative Case 1.2: Pharmaceutical Companies,
Intellectual Property, and the Global AIDS Epidemic 97
The Role of Culture Part Two
4 The Meanings and Dimensions of Culture 110

5 Managing Across Cultures 146
6 Organizational Cultures and Diversity 174
7 Cross-Cultural Communication and Negotiation 200
Brief Integrative Case 2.1: Coca-Cola in India 238
Brief Integrative Case 2.2: Danone’s Wrangle
with Wahaha 244
In-Depth Integrative Case 2.1a: Euro Disneyland 250
In-Depth Integrative Case 2.1b: Beyond Tokyo:
Disney’s Expansion in Asia 260
In-Depth Integrative Case 2.2: Walmart’s Global Strategies 264
International Strategic Management Part Three
8 Strategy Formulation and Implementation 274

9 Entry Strategies and Organizational Structures 306
10 Managing Political Risk, Government Relations, and Alliances 342
11 Management Decision and Control 366
Brief Integrative Case 3.1: Google in China: Protecting
Property and Rights 392
xv
xvi Brief Contents
Brief Integrative Case 3.2: Can Sony Regain Its Innovative

Edge? The OLED Project 397
In-Depth Integrative Case 3.1: Tata “Nano”: The People’s Car 402
In-Depth Integrative Case 3.2: The Ascendance of AirAsia:
Building a Successful Budget Airline in Asia 411
Part Four Organizational Behavior and Human

Resource Management
12 Motivation Across Cultures 422

13 Leadership Across Cultures 454
14 Human Resource Selection and Development Across Cultures 492
Brief Integrative Case 4.1: IKEA’s Global Renovations 537
In-Depth Integrative Case 4.1: HSBC in China 544
In-Depth Integrative Case 4.2: Chiquita’s Global Turnaround 560
Skill-Building and Experiential Exercises
References 587
Endnotes 591
Glossary 631
Indexes 637
Table of Contents
Environmental Foundation Part One
1 Globalization and International Linkages 2

The World of International Management: An Interconnected World 2
Introduction 4
Globalization and Internationalization 6
Globalization, Antiglobalization, and Global Pressures 6
Global and Regional Integration 9
The Shifting Balance of Economic Power in the Global Economy 12
Global Economic Systems 19
Market Economy 19
Command Economy 19
Mixed Economy 20
Economic Performance and Issues of Major Regions 20
Established Economies 20
Emerging Economies 22
Developing Economies on the Verge 26
The World of International Management—Revisited 30

Summary of Key Points 32
Key Terms 32
Review and Discussion Questions 32
Answers to the In-Chapter Quiz 33
Internet Exercise: Global Competition in Fast Food 33
In the International Spotlight: India 34
2 The Political, Legal, and Technological Environment 36

The World of International Management:
Social Media and the Pace of Change 36
Political Environment 38
Ideologies 39
Political Systems 41
Legal and Regulatory Environment 44
Basic Principles of International Law 44
Examples of Legal and Regulatory Issues 45
Privatization 48
Regulation of Trade and Investment 50
Technological Environment and Global Shifts in Production 51
Trends in Technology, Communication, and Innovation 51
xvii
xviii Table of Contents
Biotechnology 53
E-Business 54
Telecommunications 55
Technological Advancements, Outsourcing, and Offshoring 56

Key Terms 59
Internet Exercise: Hitachi Goes Worldwide 60
In the International Spotlight: Vietnam 61
3 Ethics, Social Responsibility, and Sustainability 62

Sustaining Sustainable Companies 62
Ethics and Social Responsibility 64
Ethics and Social Responsibility in International Management 65
Ethics Theories and Philosophy 65
Human Rights 66
Labor, Employment, and Business Practices 68
Environmental Protection and Development 69
Globalization and Ethical Obligations of MNCs 71
Reconciling Ethical Differences across Cultures 73
Corporate Social Responsibility and Sustainability 74
Corporate Governance 78
Corruption 79
International Assistance 81

Key Terms 84
Internet Exercise: Social Responsibility at Johnson & Johnson and HP 85
In the International Spotlight: Saudi Arabia 86
Brief Integrative Case 1.1: Advertising or Free Speech?
The Case of Nike and Human Rights 87
Brief Integrative Case 1.2: Dansko Puts its Right Foot Forward 89
In-Depth Integrative Case 1.1: Student Advocacy and “Sweatshop”
Labor: The Case of Russell Athletic 92
In-Depth Integrative Case 1.2: Pharmaceutical Companies,
Intellectual Property, and the Global AIDS Epidemic 97
Part Two The Role of Culture
4 The Meanings and Dimensions of Culture 110

The World of International Management: The Cultural
Roots of Toyota’s Quality Crisis 110
Table of Contents xix
The Nature of Culture 112

Cultural Diversity 113
Values in Culture 117
Value Differences and Similarities across Cultures 117
Values in Transition 118
Cultural Dimensions 120
Hofstede 120
Trompenaars 127
Integrating Culture and Management: The GLOBE Project 136
Culture and Management 137
GLOBE’s Cultural Dimensions 138
GLOBE Country Analysis 138

Key Terms 142
Internet Exercise: Renault-Nissan in South Africa 143
In the International Spotlight: South Africa 144
5 Managing Across Cultures 146

The World of International Management: Apple v. Samsung:
Comparing Corporate Culture 146
The Strategy for Managing across Cultures 148
Strategic Predispositions 149
Meeting the Challenge 150
Cross-Cultural Differences and Similarities 153
Parochialism and Simplification 153
Similarities across Cultures 156
Many Differences across Cultures 156
Cultural Differences in Selected Countries and Regions 160
Doing Business in China 161
Doing Business in Russia 163
Doing Business in India 165
Doing Business in France 166
Doing Business in Brazil 167
Doing Business in Arab Countries 168

Key Terms 171
Internet Exercise: Haier’s Approach 171
In the International Spotlight: Mexico 172
6 Organizational Cultures and Diversity 174

The World of International Management: Managing
Culture and Diversity in Global Teams 174
xx Table of Contents
The Nature of Organizational Culture 176

Definition and Characteristics 177
Interaction between National and Organizational Cultures 178
Organizational Cultures in MNCs 182
Family Culture 184
Eiffel Tower Culture 184
Guided Missile Culture 185
Incubator Culture 186
Managing Multiculturalism and Diversity 188
Phases of Multicultural Development 188
Types of Multiculturalism 190
Potential Problems Associated with Diversity 192
Advantages of Diversity 193
Building Multicultural Team Effectiveness 194

Key Terms 197
Internet Exercise: Lenovo’s International Focus 197
In the International Spotlight: Japan 199
7 Cross-Cultural Communication and Negotiation 200

Offshoring Culture and Communication 200
The Overall Communication Process 203
Verbal Communication Styles 203
Interpretation of Communications 206
Communication Flows 207
Downward Communication 207
Upward Communication 209
Communication Barriers 210
Language Barriers 210
Perceptual Barriers 213
The Impact of Culture 215
Nonverbal Communication 217
Achieving Communication Effectiveness 220
Improve Feedback Systems 220
Provide Language Training 220
Provide Cultural Training 221
Increase Flexibility and Cooperation 221
Managing Cross-Cultural Negotiations 223
Types of Negotiation 223
The Negotiation Process 224
Cultural Differences Affecting Negotiations 225
Table of Contents xxi
Negotiation Tactics 228

Negotiating for Mutual Benefit 229
Bargaining Behaviors 231

Key Terms 235
Internet Exercise: Working Effectively at Toyota 236
In the International Spotlight: China 237
Brief Integrative Case 2.1: Coca-Cola in India 238
Brief Integrative Case 2.2: Danone’s Wrangle with Wahaha 244
In-Depth Integrative Case 2.1a: Euro Disneyland 250
In-Depth Integrative Case 2.1b: Beyond Tokyo: Disney’s Expansion in Asia 260
In-Depth Integrative Case 2.2: Walmart’s Global Strategies 264
International Strategic Management Part Three
8 Strategy Formulation and Implementation 274

Big Pharma Goes Global 274
Strategic Management 277
The Growing Need for Strategic Management 278
Benefits of Strategic Planning 279
Approaches to Formulating and Implementing Strategy 279
Global and Regional Strategies 283
The Basic Steps in Formulating Strategy 286
Environmental Scanning 286
Internal Resource Analysis 288
Goal Setting for Strategy Formulation 288
Strategy Implementation 290
Location Considerations for Implementation 290
Combining Country and Firm-Specific Factors in
International Strategy 292
The Role of the Functional Areas in Implementation 293
Specialized Strategies 295
Strategies for Emerging Markets 295
Entrepreneurial Strategy and New Ventures 301

Key Terms 303
Internet Exercise: Infosys’s Global Strategy 304
In the International Spotlight: Poland 305
xxii Table of Contents
9 Entry Strategies and Organizational Structures 306

The World of International Management: Volkswagen’s
Comeback: Aligning Strategy and Structure 306
Entry Strategies and Ownership Structures 308
Export/Import 308
Wholly Owned Subsidiary 309
Mergers/Acquisitions 309
Alliances and Joint Ventures 314
Alliances, Joint Ventures, and M&A: The Case of the
Automotive Industry 316
Licensing 317
Franchising 320
The Organization Challenge 320
Basic Organizational Structures 321
Initial Division Structure 321
International Division Structure 322
Global Structural Arrangements 324
Transnational Network Structures 328
Nontraditional Organizational Arrangements 330
Organizational Arrangements from Mergers,
Acquisitions, Joint Ventures, and Alliances 330
The Emergence of the Network Organizational Forms 332
Organizing for Product Integration 332
Organizational Characteristics of MNCs 334
Formalization 334
Specialization 335
Centralization 336
Putting Organizational Characteristics in Perspective 336

Key Terms 339
Internet Exercise: Organizing for Effectiveness 339
In the International Spotlight: Australia 340
10 Managing Political Risk, Government Relations,

and Alliances 342
Shell’s Russian Roulette 342
The Nature and Analysis of Political Risk 344
Macro and Micro Analysis of Political Risk 345
Terrorism and Its Overseas Expansion 349
Analyzing the Expropriation Risk 349
Managing Political Risk and Government Relations 350
Developing a Comprehensive Framework or
Quantitative Analysis 350
Table of Contents xxiii
Techniques for Responding to Political Risk 352

Relative Bargaining Power Analysis 352
Managing Alliances 357
The Alliance Challenge 357
The Role of Host Governments in Alliances 359
Examples of Challenges and Opportunities in
Alliance Management 360

Key Terms 362
Internet Exercise: Nokia in China 363
In the International Spotlight: Brazil 364
11 Management Decision and Control 366

Global Online Retail: Amazon v. Alibaba 366
Decision-Making Process and Challenges 368
Factors Affecting Decision-Making Authority 369
Cultural Differences and Comparative Examples of
Decision Making 372
Total Quality Management Decisions 373
Decisions for Attacking the Competition 375
Decision and Control Linkages 376
The Controlling Process 377
Types of Control 378
Approaches to Control 380
Performance Evaluation as a Mechanism of Control 382
Financial Performance 382
Quality Performance 383
Personnel Performance 386

Key Terms 389
Internet Exercise: Looking at the Best 390
In the International Spotlight: Turkey 391
Brief Integrative Case 3.1: Google in China:
Protecting Property and Rights 392
Brief Integrative Case 3.2: Can Sony Regain Its Innovative Edge?
The OLED Project 397
In-Depth Integrative Case 3.1: Tata “Nano”:
The People’s Car 402
In-Depth Integrative Case 3.2: The Ascendance of AirAsia: Building a
Successful Budget Airline in Asia 411
xxiv Table of Contents
Part Four Organizational Behavior and

Human Resource Management
12 Motivation Across Cultures 422

The World of International Management: Motivating Employees
in a Multicultural Context: Insights from the Emerging Markets 422
The Nature of Motivation 424
The Universalist Assumption 425
The Assumption of Content and Process 426
The Hierarchy-of-Needs Theory 427
The Maslow Theory 427
International Findings on Maslow’s Theory 427
The Two-Factor Theory of Motivation 431
The Herzberg Theory 431
International Findings on Herzberg’s Theory 433
Achievement Motivation Theory 437
The Background of Achievement Motivation Theory 437
International Findings on Achievement Motivation Theory 438
Select Process Theories 439
Equity Theory 439
Goal-Setting Theory 441
Expectancy Theory 441
Motivation Applied: Job Design, Work Centrality, and Rewards 442
Job Design 442
Sociotechnical Job Designs 443
Work Centrality 444
Incentives and Culture 448

Key Terms 452
Internet Exercise: Motivating Potential Employees 452
In the International Spotlight: Indonesia 453
13 Leadership Across Cultures 454

The World of International Management: Global Leadership
Development: An Emerging Need 454
Foundation for Leadership 456
The Manager-Leader Paradigm 456
Philosophical Background: Theories X, Y, and Z 458
Leadership Behaviors and Styles 461
The Managerial Grid Performance: A Japanese Perspective 462
Leadership in the International Context 465
Table of Contents xxv
Attitudes of European Managers toward Leadership Practices 465

Japanese Leadership Approaches 467
Differences between Japanese and U.S. Leadership Styles 468
Leadership in China 470
Leadership in the Middle East 471
Leadership Approaches in India 471
Leadership Approaches in Latin America 472
Recent Findings and Insights about Leadership 473
Transformational, Transactional, and Charismatic Leadership 473
Qualities for Successful Leaders 475
Culture Clusters and Leader Effectiveness 477
Leader Behavior, Leader Effectiveness, and Leading Teams 478
Cross-Cultural Leadership: Insights from the GLOBE Study 478
Positive Organizational Scholarship and Leadership 482
Authentic Leadership 482
Ethical, Responsible, and Servant Leadership 485
Entrepreneurial Leadership and Mindset 486

Key Terms 488
Internet Exercise: Taking a Closer Look 489
In the International Spotlight: Germany 490
14 Human Resource Selection and Development

Across Cultures 492
The World of International Management: The Challenge
of Talent Retention in India 492
The Importance of International Human Resources 495
Getting the Employee Perspective 495
Employees as Critical Resources 496
Investing in International Assignments 496
Economic Pressures 496
Sources of Human Resources 498
Home-Country Nationals 498
Host-Country Nationals 498
Third-Country Nationals 499
Subcontracting and Outsourcing 500
Selection Criteria for International Assignments 503
General Criteria 503
Adaptability to Cultural Change 504
Physical and Emotional Health 505
Age, Experience, and Education 505
Language Training 506
Motivation for a Foreign Assignment 506
xxvi Table of Contents
Spouses and Dependents or Work-Family Issues 506

Leadership Ability 507
Other Considerations 507
Economic Pressures and Trends in Expat Assignments 509
International Human Resource Selection Procedures 510
Testing and Interviewing Procedures 510
The Adjustment Process 510
Compensation 512
Common Elements of Compensation Packages 513
Tailoring the Package 515
Individual and Host-Country Viewpoints 516
Candidate Motivations 516
Host-Country Desires 517
Repatriation of Expatriates 518
Reasons for Returning 518
Readjustment Problems 518
Transition Strategies 519
Training in International Management 520
The Impact of Overall Management Philosophy on Training 522
The Impact of Different Learning Styles on Training
and Development 523
Reasons for Training 524
Types of Training Programs 526
Standardized vs. Tailor-Made 526
Cultural Assimilators 529
Positive Organizational Behavior 530
Future Trends 531

Key Terms 534
Internet Exercise: Going International with Coke 535
In the International Spotlight: Russia 536
Brief Integrative Case 4.1: IKEA’s Global Renovations 537
In-Depth Integrative Case 4.1: HSBC in China 544
In-Depth Integrative Case 4.2: Chiquita’s Global Turnaround 560
Skill-Building and Experiential Exercises
Personal Skill-Building Exercises 569

1. The Culture Quiz 570
2. Using Gung Ho to Understand Cultural Differences 575
Table of Contents xxvii
3. “When in Bogotá . . .” 577

4. The International Cola Alliances 580
5. Whom to Hire? 584
In-Class Simulations (available on the Online Learning

Center at www.mhhe.com/luthans9e)
1. “Frankenfoods” or Rice Bowl for the World: The U.S.–EU Dispute
over Trade in Genetically Modified Organisms
2. Cross-Cultural Conflicts in the Corning–Vitro Joint Venture
References 587
Endnotes 591
Glossary 631
Name and Organization Index 637
Subject Index 649
PART ONE
ENVIRONMENTAL
FOUNDATION
Chapter 1
GLOBALIZATION AND
INTERNATIONAL LINKAGES
Globalization is one of the most profound forces in our
contemporary economic environment. And its practical
The World of International
impact on international management is substantial. In nearly Management
every country, increasing numbers of large, medium, and
even small corporations are going international, and a grow-
ing percentage of company revenue is derived from overseas
An Interconnected World
ay 18, 2012, marked one of the most highly-
markets. This is even true for U.S.-based companies that
M
OBJECTIVES OF THE CHAPTER
historically have relied on the large domestic market. Yet, the anticipated initial public offerings (IPOs) in
reverberations of the financial crisis and global economic history. Facebook, which had grown from a college
recession, and continued economic and political uncertain- dorm room to a 900-million-member social network in
ties in many world regions present challenges for govern- just eight years, was set to offer shares to the public
ments, corporations, and communities around the world, for the first time. As May 18 approached, founder
causing some to question the current system for regulating Mark Zuckerberg, wearing his characteristic “hoodie”
and overseeing international trade, investments, and global sweatshirt, embarked on a roadshow to promote the
financial flows. Nonetheless, international management—the company. Facebook programmers celebrated with all-
process of applying management concepts and techniques in night “hackathons,” and huge demand for the IPO
a multinational environment—continues to retain importance. prompted Facebook to release 25 percent more
Although globalization and international linkages have shares than initially planned. The IPO price was set
been part of history for centuries (see the International Man- to $38 per share, valuing Facebook at $104 billion.
agement in Action box later in the chapter, “Tracing the Roots Many analysts predicted the price would soar as high
of Modern Globalization”), the principal focus of this opening as $60 on the first day alone. On the morning of May
chapter is to examine the process of globalization in the con- 18, Mark Zuckerberg ceremoniously rang a bell from
temporary world. The rapid integration of countries, advances Facebook’s California campus to celebrate the open-
in information technology, and the explosion in electronic ing of the market at 9:30 A.M. As Wall Street’s clos-
communication have created a new, more integrated world ing bell rang just a few hours later, however, the
and true global competition. Yet, the complexities of doing original optimism that started the day had all but
business in distinct markets persist. These developments both faded. The shares were trading only $0.23 above the
create and influence the opportunities, challenges, and prob- IPO price—and down $3.82 from the opening bell
lems that managers in the international arena will face during price. In the following weeks, Facebook’s stock con-
the years ahead. Since the environment of international man- tinued its downward trajectory. By mid-August, Face-
agement is all-encompassing, this chapter is mostly con- book stock had decreased to nearly half its original
cerned with the economic dimensions, while the following offering price, leaving many to wonder, “Is social net-
two chapters are focused on the political, legal, and working really here to stay?”
technological dimensions and ethical and social dimensions,
respectively. The specific objectives of this chapter are:
Social Media Has Changed
1. ASSESS the implications of globalization for How We Connect
countries, industries, firms, and communities.
Though some have second-guessed the longevity of
2. REVIEW the major trends in global and regional online networks, one thing is certain: We currently live
integration. in a world interconnected by social media. Through
online networking, the way we connect with others has
3. EXAMINE the changing balance of global economic
drastically changed. Virtually anyone on the globe is
power and trade and investment flows among countries.
only a few clicks away. In fact, the average number of
4. ANALYZE the major economic systems and recent links separating any two random people on Facebook
developments among countries that reflect those systems. is now only 4.74.1 Facebook’s statistics underscore how
2
social media has connected people across The following year, in 2011, Secret deodorant sales
the globe: began to drop. In an effort to shift its advertising toward
teenage females, P&G created a Facebook marketing cam-
• More than one billion people have active paign that addressed the issue of bullying. Titled “Mean
accounts on Facebook. Stinks,” the campaign encouraged users to “like” the
• More than 50 percent of these active users log Facebook page and share stories and videos. This campaign
onto Facebook in any given day.2 increased activity on Secret’s Facebook page by 25 times,
• The average user has 190 friends.3 and sales spiked by 9 percent over a six-month period.8
Through its use of Facebook, P&G has connected with
• 3.2 billion comments and likes are uploaded
millions of people around the world at little cost to increase
per day.
sales and enhance its brand. Businesses have gained huge
• 18 percent of time spent online is dedicated to competitive edges by seizing the opportunities inherent in
social media.4 this new global society of online social networks.
• Over 80 percent of Facebook users are outside
the United States.
Social Media Has Changed How We Do Business
• More than 70 translations are available on
In his book Socialnomics: How Social Media Transforms
Facebook.
the Way We Live and Do Business, Erik Qualman writes,
• Over 200 million people from the emerging
“Social media platforms like Facebook, YouTube, and
nations of Brazil, India, Indonesia, and Mexico
Twitter are fundamentally changing the way businesses
are now active Facebook users.5
and consumers behave, connecting hundreds of millions
of people to each other via instant communication.” In
Certainly, social networks are a part of many people’s lives. essence, social media is reshaping how “consumers and
Yet, has the virtual world of social media networks made a companies communicate and interact with each other.”9
permanent impact in the world of international business? Social media has changed how consumers search for
products and services. Qualman gives the example of a
Social Media Has Changed Business Strategy woman who wants to take a vacation to South America, but
Procter & Gamble (P&G), which owns several of the most she is not sure which country she wants to visit. In the past,
recognizable brands on the planet, has strategically lever- she would have typed in “South American vacation” to
aged social media to improve its long-term brand image. In Google, which would have brought her to travel websites
2010, P&G unveiled a Billion Acts of Green™ Facebook appli- such as TripAdvisor. After hours of research, she would have
cation which allows people to “make a pledge to lessen picked a destination. Then, after more research, she would
their environmental impact and promote environmentally pick a place to stay. With social media, this woman’s vaca-
beneficial habits to friends and family via social media chan- tion planning becomes streamlined. When she types “South
nels.” This social media application enables users to share American vacation” into a social network, she finds that five
their “act of green” pledges with their Facebook network. As of her friends have taken a trip to South America in the last
of 2013, there were over one billion acts of green pledged.6 year. She notices that two of her friends highly recom-
P&G has also utilized social networking to increase mended their vacations to Chile with GoAhead Tours. She
revenue. After stagnant sales in 2010, P&G decided to clicks on a link to GoAhead Tours and books her vacation. In
refocus the advertising of Pepto-Bismol online. By moni- a social network, online word of mouth among friends carries
toring Facebook activity, P&G discovered that the most great weight for consumers. With the data available from
social media buzz regarding Pepto-Bismol was occurring their friends about products and services, consumers know
on weekend mornings, likely after customers had overin- what they want without traditional marketing campaigns.10
dulged the night before. To tap into this market, P&G cre- This trend means that marketers must be responsive to
ated a Facebook initiative called “Celebrate Life.” Within social networks. For example, an organization that gives
one year, Pepto-Bismol gained 11 percent market share.7 travel tours has a group on Facebook. A marketer at that
3
4 Part 1 Environmental Foundation
organization could create a Facebook application that allows corruption or human trafficking,” according to Jared Cohen
its group members to select “places I’d like to visit.” Let’s who serves on Secretary of State Hillary Clinton’s policy
say that 25 percent of group members who use the applica- planning staff. In Russia, the average adult spends 10.4 hours
tion choose Victoria Falls as a place they would like to visit. a month on social networking sites, based on comScore
The organization could develop a tour to Victoria Falls, and market research. This act of diplomacy by Washington
then could send a message to all of its Facebook group underscores how important social networks have become in
members to notify them about this new tour. In this way, a our world today, a world in which Twitter has helped
social network serves as an inexpensive, effective means of mobilize people to fight for freedom from corruption.
marketing directly to a business’s target audience. Social media networks have accelerated technological
integration among the nations of the world. People across
Social Media Has Impacted Diplomacy the globe are now linked more closely than ever before.
In February 2010, Washington sent an unconventional dele- This social phenomenon has implications for businesses
gation to Moscow, which included the creator of Twitter, the as corporations can now leverage networks such as
chief executive of eBay, and the actor Ashton Kutcher. One Facebook to achieve greater success. Understanding the
of the delegation’s goals was “to persuade Russia’s thriving global impact of social media is key to understanding our
online social networks to take up social causes like fighting global society today.
Social networks have rapidly diffused from the United States and Europe to every region
of the world, underscoring the inexorable nature of globalization. As individuals who
share interests and preferences link up, they are afforded opportunities to connect in ways
that were unimaginable just a decade ago. Facebook, Twitter, Linkedin, and others are
all providing communication platforms for individuals and groups in disparate—and
even isolated—locations around the world. Such networks also offer myriad business
opportunities for companies large and small to identify and target discrete groups of
consumers or other business partners. These networks are revolutionizing the nature of
management—including international management—by allowing producers and consum-
ers to interact directly without the usual intermediaries. Networks and the individuals
who make them up are bringing populations of the world closer together and further
accelerating the already rapid pace of globalization and integration.
Though the disappointing Facebook IPO left many to initially question the value and
longevity of social media, the pace of interconnectivity across the globe has not slowed.
Social media has altered the way that we interact with each other, and businesses, like P&G,
have gained real advantages by leveraging online networks. In this chapter, we examine the
globalization phenomenon, the growing integration among countries and regions, the chang-
ing balance of global economic power, and examples of different economic systems. As you
read this chapter, keep in mind that although there are periodic setbacks, such as the recession
of 2008–2009, globalization is moving at a rapid pace and that all nations, including the
United States, as well as individual companies and their managers, are going to have to keep
a close watch on the current environment if they hope to be competitive in the years ahead.
management
Process of completing
activities efficiently and
■ Introduction
effectively with and Management is the process of completing activities with and through other people.
through other people. International management is the process of applying management concepts and
international management techniques in a multinational environment and adapting management practices to dif-
Process of applying ferent economic, political, and cultural contexts. Many managers practice some level
management concepts and of international management in today’s increasingly diverse organizations. International
techniques in a multinational management is distinct from other forms of management in that knowledge and
environment and adapting insights about global issues and specific cultures are a requisite for success. Today
management practices to more firms than ever are earning some of their revenue from international operations,
different economic, political, even nascent organizations as illustrated in The World of International Management
and cultural contexts. chapter opening.
Chapter 1 Globalization and International Linkages 5
Table 1–1
The World’s Top Nonfinancial TNCs, Ranked by Foreign Assets, 2012
(in millions of dollars)
Company Home Foreign Total Foreign Total

Rank Name Economy Assets Assets Sales Sales
1 General Electric United States $338,157 $685,328 $75,640 $144,796
2 Royal Dutch/ Netherlands/
Shell plc United Kingdom 307,938 360,325 282,930 467,153
3 British Petroleum
Company Plc United Kingdom 270,247 300,193 300,216 375,580
4 Toyota Motor Corporation Japan 233,193 376,841 170,486 265,770
5 Total SA France 214,507 227,107 180,440 234,287
6 Exxon Mobil Corporation United States 214,349 333,795 301,840 420,714
7 Vodafone Group Plc United Kingdom 199,003 217,031 62,065 70,224
8 GDF Suez France 175,057 271,607 78,555 124,711
9 Chevron Corporation United States 158,865 232,982 132,743 222,580
10 Volkswagen Group Germany 158,046 409,257 199,129 247,624
Source: UNCTAD World Investment Report 2013, Web Table 28.
Many of these companies are multinational corporations (MNCs). An MNC is a firm MNC
that has operations in more than one country, international sales, and a mix of nationalities A firm having operations
among managers and owners. In recent years such well-known American MNCs as Avon in more than one country,
Products, Chevron, Citicorp, Coca-Cola, Colgate Palmolive, Du Pont, ExxonMobil, Eastman international sales, and a
Kodak, Gillette, Hewlett-Packard, McDonald’s, Motorola, Ralston Purina, Texaco, the 3M nationality mix among
Company, and Xerox have all earned more annual revenue in the international arena than managers and owners.
they have stateside. GE, one of the world’s largest companies, with 2012 revenue of more
than $147 billion, earned 57 percent of its industrial revenue from overseas that year. Table
1–1 lists the world’s top nonfinancial companies ranked by foreign assets in 2012.
In addition, companies from developing economies, such as India, Brazil, and China,
are providing formidable competition to their North American, European, and Japanese
counterparts. Names like Cemex, Embraer, Haier, Lenovo, LG Electronics, Ping An,
Rambaxy, Telefonica, Santander, Reliance, Samsung, Grupo Televisa, Tata, and Infosys are
becoming well-known global brands. Globalization and the rise of emerging markets’
MNCs have brought prosperity to many previously underdeveloped parts of the world,
notably the emerging markets of Asia. Since 2009, sales of automobiles in China have
exceeded those in the United States. Vehicle sales in China reached a record 19.3 million
units in 2012, according to the China Association of Automobile Manufacturers, far ahead
of the 14.5 million cars and light trucks sold in the U.S.11 Moreover, a number of Chinese
auto companies are becoming global players through their exporting, foreign investment,
and international acquisitions, including the purchase by Geely of ailing Ford unit Volvo,
Fiat’s investment in Chrysler, and Tata’s purchase of Jaguar-Land Rover.
In a striking move, Cisco Systems, one of the world’s largest producers of network
equipment, such as routers, announced it would establish a “Globalization Center East” in
Bangalore, India. This center includes all the corporate and operational functions of U.S.
headquarters, which have been mirrored in India. Under this plan, which includes an invest-
ment of over $1.1 billion, one-fifth of Cisco’s senior management will move to Bangalore.12,13
In September 2012, Procter and Gamble relocated their skin care, cosmetics, and
personal care headquarters from Cincinnati to Singapore. According to P&G, Asia
accounts for roughly half of the skin care market globally, and, with the growing pros-
perity in Asia, is expected to continue to expand.14 Similarly, citing the massive growth
in the healthcare market in Asia, General Electric moved its X-ray business headquarters
to China in 2011, and vice chairman John Rice relocated to Hong Kong.15,16
6 Part 1 Environmental Foundation
Table 1–2
The World’s Top Nonfinancial TNCs from Developing and Transitioning Economies,
Ranked by Foreign Assets, 2011
(in millions of dollars)
Company Home Foreign Total Foreign Total

Rank Name Economy Assets Assets Sales Sales
1 Hutchison Hong Kong/
Whampoa Limited China $77,291 $92,788 $23,477 $30,023
2 CITIC Group China 71,512 514,847 9,923 51,659
3 Hon Hai Precision
Industries Taiwan 52,198 57,451 114,285 117,992
4 Vale SA Brazil 48,045 128,728 49,475 60,389
5 China Ocean Shipping
(Group) Company China 40,435 52,230 19,454 29,579
6 Petronas – Petroliam
Nasional BhD Malaysia 38,907 150,435 43,228 72,853
7 Cemex S.A.B. de C.V. Mexico 34,601 39,191 11,792 15,208
8 America Movil SAB De CV Mexico 32,694 67,590 38,315 53,553
9 VimpelCom Ltd Russian Federation 29,829 54,039 11,280 20,262
10 China National
Offshore Oil Group China 29,802 112,887 19,786 75,518
Source: UNCTAD World Investment Report 2013, Web Table 29.
IBM, another American archetype, had about 433,000 employees globally in 2012,
with only about 95,000 in the U.S. This is fewer than in India, which has about 130,000
IBM employees. In 2011, IBM drew 64 percent of its $100 billion in revenue from over-
seas.17 With a focus on large-scale projects in emerging markets, such as building a wireless
phone network across Africa, IBM plans to receive 30 percent of its revenue from emerging
markets by 2015.18,19 As of 2012, IBM had operations in over 20 African nations, and, in
August 2012, IBM announced the opening of a research lab in Kenya.20 More than half of
IBM’s research staff are currently located outside of the United States.
These trends reflect the reality that firms are finding they must develop inter-
national management expertise, especially expertise relevant to the increasingly
important developing and emerging markets of the world. Managers from today’s
MNCs must learn to work effectively with those from many different countries. More-
over, more and more small and medium-sized businesses will find that they are being
affected by internationalization. Many of these companies will be doing business
abroad, and those that do not will find themselves doing business with MNCs operat-
ing locally. Table 1–2 lists the world’s top nonfinancial companies from developing
countries ranked by foreign assets in 2011.
■ Globalization and Internationalization

International business is not a new phenomenon; however, the volume of international
trade has increased dramatically over the last decade. Today, every nation and an increas-
ing number of companies buy and sell goods in the international marketplace. A number
globalization of developments around the world have helped fuel this activity.
The process of social,
political, economic,
cultural, and technological Globalization, Antiglobalization, and Global Pressures
integration among Globalization can be defined as the process of social, political, economic, cultural, and
countries around the world. technological integration among countries around the world. Globalization is distinct
International Management in Action
Tracing the Roots of Modern Globalization
Globalization is often presented as a new phenomenon in exchange for trading privileges with China and
associated with the post–World War II period. In fact, China’s protection. The Chinese, like modern-day multi-
globalization is not new. Rather, its roots extend back nationals, sought to extend their economic reach while
to ancient times. Globalization emerged from long- recognizing principles of economic equity and fair
standing patterns of transcontinental trade that devel- trade. In the course of their global trading, the Chinese
oped over many centuries. The act of barter is the introduced uniform container measurements to enable
forerunner of modern international trade. During differ- merchants to transact business using common weight
ent periods of time, nearly every civilization contributed and dimension measurement systems. Like the early
to the expansion of trade. Egyptians and later the Romans, they used coinage as
an intermediary form of value exchange or specie, thus
eliminating complicated barter transactions.
Middle Eastern Intercontinental Trade
In ancient Egypt, the King’s Highway or Royal Road
stretched across the Sinai into Jordan and Syria and
European Trade Imperative
into the Euphrates Valley. These early merchants prac- The concept of the alphabet came to the Greeks via
ticed their trade following one of the earliest codes of trade with the Phoenicians. During the time of Alexander
commercial integrity: Do not move the scales, do not the Great, transcontinental trade was extended into
change the weights, and do not diminish parts of the Afghanistan and India. With the rise of the Roman Empire,
bushel. Land bridges later extended to the Phoenicians, global trade routes stretched from the Middle East
the first middlemen of global trade. Over 2,000 years through central Europe, Gaul, and across the English
ago, traders in silk and other rare valued goods moved Channel. In 1215 King John of England signed the
east out of the Nile basin to Baghdad and Kashmir and Magna Carta, which stressed the importance of cross-
linked the ancient empires of China, India, Persia, and border trade. By the time of Marco Polo’s writing of The
Rome. At its height, the Silk Road extended over 4,000 Description of the World, at the end of the 13th century,
miles, providing a transcontinental conduit for the dis- the Silk Road from China to the city-states of Italy was a
semination of art, religion, technology, ideas, and culture. well-traveled commercial highway. His tales, chronicled
Commercial caravans crossing land routes in Arabian journeys with his merchant uncles, gave Europeans a
areas were forced to pay tribute—a forerunner of custom taste for the exotic, further stimulating the consumer
duties—to those who controlled such territories. In his appetite that propelled trade and globalization. Around
youth, the Prophet Muhammad traveled with traders, and 1340, Francisco Balducci Pegolotti, a Florentine mercan-
prior to his religious enlightenment the founder of Islam tile agent, authored Practica Della Mercatura (Practice of
himself was a trader. Accordingly, the Qur’an instructs Marketing), the first widely distributed reference on inter-
followers to respect private property, business agree- national business and a precursor to today’s textbooks.
ments, and trade. The search for trading routes contributed to the Age of
Discovery and encouraged Christopher Columbus to sail
west in 1492.
Trans-Saharan Cross-Continental Trade
Early tribes inhabiting the triad cities of Mauritania, in
ancient West Africa below the Sahara, embraced car-
Globalization in U.S. History
avan trade with the Berbers of North Africa. Gold from The Declaration of Independence, which set out griev-
the sub-Saharan area was exchanged for something ances against the English crown upon which a new
even more prized—salt, a precious substance needed nation was founded, cites the desire to “establish Com-
for retaining body moisture, preserving meat, and fla- merce” as a chief rationale for establishing an inde-
voring food. Single caravans, stretching five miles and pendent state. The king of England was admonished
including nearly 2,500 camels, earned their reputation “for cutting off our trade with all parts of the world” in
as ships of the desert as they ferried gold powder, one of the earliest antiprotectionist free-trade state-
slaves, ivory, animal hides, and ostrich feathers to the ments from the New World.
northeast and returned with salt, wool, gunpowder, Globalization, begun as trade between and across
porcelain pottery, silk, dates, millet, wheat, and barley territorial borders in ancient times, was historically and
from the East. is even today the key driver of world economic devel-
opment. The first paths in the creation of civilization
were made in the footsteps of trade. In fact the word
China as an Ancient Global Trading Initiator
meaning “footsteps” in the old Anglo-Saxon language
In 1421, a fleet of over 3,750 vessels set sail from China is trada, from which the modern English word trade is
to cultivate trade around the world for the emperor. The derived. Contemporary globalization is a new branch
voyage reflected the emperor’s desire to collect tribute of a very old tree whose roots were planted in antiquity.
7
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Newala, too, suffers from the distance of its water-supply—at least

the Newala of to-day does; there was once another Newala in a lovely
valley at the foot of the plateau. I visited it and found scarcely a trace
of houses, only a Christian cemetery, with the graves of several
missionaries and their converts, remaining as a monument of its
former glories. But the surroundings are wonderfully beautiful. A
thick grove of splendid mango-trees closes in the weather-worn
crosses and headstones; behind them, combining the useful and the
agreeable, is a whole plantation of lemon-trees covered with ripe
fruit; not the small African kind, but a much larger and also juicier
imported variety, which drops into the hands of the passing traveller,
without calling for any exertion on his part. Old Newala is now under
the jurisdiction of the native pastor, Daudi, at Chingulungulu, who,
as I am on very friendly terms with him, allows me, as a matter of
course, the use of this lemon-grove during my stay at Newala.
FEET MUTILATED BY THE RAVAGES OF THE “JIGGER”
(Sarcopsylla penetrans)
The water-supply of New Newala is in the bottom of the valley,

some 1,600 feet lower down. The way is not only long and fatiguing,
but the water, when we get it, is thoroughly bad. We are suffering not
only from this, but from the fact that the arrangements at Newala are
nothing short of luxurious. We have a separate kitchen—a hut built
against the boma palisade on the right of the baraza, the interior of
which is not visible from our usual position. Our two cooks were not
long in finding this out, and they consequently do—or rather neglect
to do—what they please. In any case they do not seem to be very
particular about the boiling of our drinking-water—at least I can
attribute to no other cause certain attacks of a dysenteric nature,
from which both Knudsen and I have suffered for some time. If a
man like Omari has to be left unwatched for a moment, he is capable
of anything. Besides this complaint, we are inconvenienced by the
state of our nails, which have become as hard as glass, and crack on
the slightest provocation, and I have the additional infliction of
pimples all over me. As if all this were not enough, we have also, for
the last week been waging war against the jigger, who has found his
Eldorado in the hot sand of the Makonde plateau. Our men are seen
all day long—whenever their chronic colds and the dysentery likewise
raging among them permit—occupied in removing this scourge of
Africa from their feet and trying to prevent the disastrous
consequences of its presence. It is quite common to see natives of
this place with one or two toes missing; many have lost all their toes,
or even the whole front part of the foot, so that a well-formed leg
ends in a shapeless stump. These ravages are caused by the female of
Sarcopsylla penetrans, which bores its way under the skin and there
develops an egg-sac the size of a pea. In all books on the subject, it is
stated that one’s attention is called to the presence of this parasite by
an intolerable itching. This agrees very well with my experience, so
far as the softer parts of the sole, the spaces between and under the
toes, and the side of the foot are concerned, but if the creature
penetrates through the harder parts of the heel or ball of the foot, it
may escape even the most careful search till it has reached maturity.
Then there is no time to be lost, if the horrible ulceration, of which
we see cases by the dozen every day, is to be prevented. It is much
easier, by the way, to discover the insect on the white skin of a
European than on that of a native, on which the dark speck scarcely
shows. The four or five jiggers which, in spite of the fact that I
constantly wore high laced boots, chose my feet to settle in, were
taken out for me by the all-accomplished Knudsen, after which I
thought it advisable to wash out the cavities with corrosive
sublimate. The natives have a different sort of disinfectant—they fill
the hole with scraped roots. In a tiny Makua village on the slope of
the plateau south of Newala, we saw an old woman who had filled all
the spaces under her toe-nails with powdered roots by way of
prophylactic treatment. What will be the result, if any, who can say?
The rest of the many trifling ills which trouble our existence are
really more comic than serious. In the absence of anything else to
smoke, Knudsen and I at last opened a box of cigars procured from
the Indian store-keeper at Lindi, and tried them, with the most
distressing results. Whether they contain opium or some other
narcotic, neither of us can say, but after the tenth puff we were both
“off,” three-quarters stupefied and unspeakably wretched. Slowly we
recovered—and what happened next? Half-an-hour later we were
once more smoking these poisonous concoctions—so insatiable is the
craving for tobacco in the tropics.
Even my present attacks of fever scarcely deserve to be taken
seriously. I have had no less than three here at Newala, all of which
have run their course in an incredibly short time. In the early
afternoon, I am busy with my old natives, asking questions and
making notes. The strong midday coffee has stimulated my spirits to
an extraordinary degree, the brain is active and vigorous, and work
progresses rapidly, while a pleasant warmth pervades the whole
body. Suddenly this gives place to a violent chill, forcing me to put on
my overcoat, though it is only half-past three and the afternoon sun
is at its hottest. Now the brain no longer works with such acuteness
and logical precision; more especially does it fail me in trying to
establish the syntax of the difficult Makua language on which I have
ventured, as if I had not enough to do without it. Under the
circumstances it seems advisable to take my temperature, and I do
so, to save trouble, without leaving my seat, and while going on with
my work. On examination, I find it to be 101·48°. My tutors are
abruptly dismissed and my bed set up in the baraza; a few minutes
later I am in it and treating myself internally with hot water and
lemon-juice.
Three hours later, the thermometer marks nearly 104°, and I make
them carry me back into the tent, bed and all, as I am now perspiring
heavily, and exposure to the cold wind just beginning to blow might
mean a fatal chill. I lie still for a little while, and then find, to my
great relief, that the temperature is not rising, but rather falling. This
is about 7.30 p.m. At 8 p.m. I find, to my unbounded astonishment,
that it has fallen below 98·6°, and I feel perfectly well. I read for an
hour or two, and could very well enjoy a smoke, if I had the
wherewithal—Indian cigars being out of the question.
Having no medical training, I am at a loss to account for this state
of things. It is impossible that these transitory attacks of high fever
should be malarial; it seems more probable that they are due to a
kind of sunstroke. On consulting my note-book, I become more and
more inclined to think this is the case, for these attacks regularly
follow extreme fatigue and long exposure to strong sunshine. They at
least have the advantage of being only short interruptions to my
work, as on the following morning I am always quite fresh and fit.
My treasure of a cook is suffering from an enormous hydrocele which
makes it difficult for him to get up, and Moritz is obliged to keep in
the dark on account of his inflamed eyes. Knudsen’s cook, a raw boy
from somewhere in the bush, knows still less of cooking than Omari;
consequently Nils Knudsen himself has been promoted to the vacant
post. Finding that we had come to the end of our supplies, he began
by sending to Chingulungulu for the four sucking-pigs which we had
bought from Matola and temporarily left in his charge; and when
they came up, neatly packed in a large crate, he callously slaughtered
the biggest of them. The first joint we were thoughtless enough to
entrust for roasting to Knudsen’s mshenzi cook, and it was
consequently uneatable; but we made the rest of the animal into a
jelly which we ate with great relish after weeks of underfeeding,
consuming incredible helpings of it at both midday and evening
meals. The only drawback is a certain want of variety in the tinned
vegetables. Dr. Jäger, to whom the Geographical Commission
entrusted the provisioning of the expeditions—mine as well as his
own—because he had more time on his hands than the rest of us,
seems to have laid in a huge stock of Teltow turnips,[46] an article of
food which is all very well for occasional use, but which quickly palls
when set before one every day; and we seem to have no other tins
left. There is no help for it—we must put up with the turnips; but I
am certain that, once I am home again, I shall not touch them for ten
years to come.
Amid all these minor evils, which, after all, go to make up the
genuine flavour of Africa, there is at least one cheering touch:
Knudsen has, with the dexterity of a skilled mechanic, repaired my 9
× 12 cm. camera, at least so far that I can use it with a little care.
How, in the absence of finger-nails, he was able to accomplish such a
ticklish piece of work, having no tool but a clumsy screw-driver for
taking to pieces and putting together again the complicated
mechanism of the instantaneous shutter, is still a mystery to me; but
he did it successfully. The loss of his finger-nails shows him in a light
contrasting curiously enough with the intelligence evinced by the
above operation; though, after all, it is scarcely surprising after his
ten years’ residence in the bush. One day, at Lindi, he had occasion
to wash a dog, which must have been in need of very thorough
cleansing, for the bottle handed to our friend for the purpose had an
extremely strong smell. Having performed his task in the most
conscientious manner, he perceived with some surprise that the dog
did not appear much the better for it, and was further surprised by
finding his own nails ulcerating away in the course of the next few
days. “How was I to know that carbolic acid has to be diluted?” he
mutters indignantly, from time to time, with a troubled gaze at his
mutilated finger-tips.
Since we came to Newala we have been making excursions in all
directions through the surrounding country, in accordance with old
habit, and also because the akida Sefu did not get together the tribal
elders from whom I wanted information so speedily as he had
promised. There is, however, no harm done, as, even if seen only
from the outside, the country and people are interesting enough.
The Makonde plateau is like a large rectangular table rounded off
at the corners. Measured from the Indian Ocean to Newala, it is
about seventy-five miles long, and between the Rovuma and the
Lukuledi it averages fifty miles in breadth, so that its superficial area
is about two-thirds of that of the kingdom of Saxony. The surface,
however, is not level, but uniformly inclined from its south-western
edge to the ocean. From the upper edge, on which Newala lies, the
eye ranges for many miles east and north-east, without encountering
any obstacle, over the Makonde bush. It is a green sea, from which
here and there thick clouds of smoke rise, to show that it, too, is
inhabited by men who carry on their tillage like so many other
primitive peoples, by cutting down and burning the bush, and
manuring with the ashes. Even in the radiant light of a tropical day
such a fire is a grand sight.
Much less effective is the impression produced just now by the
great western plain as seen from the edge of the plateau. As often as
time permits, I stroll along this edge, sometimes in one direction,
sometimes in another, in the hope of finding the air clear enough to
let me enjoy the view; but I have always been disappointed.
Wherever one looks, clouds of smoke rise from the burning bush,
and the air is full of smoke and vapour. It is a pity, for under more
favourable circumstances the panorama of the whole country up to
the distant Majeje hills must be truly magnificent. It is of little use
taking photographs now, and an outline sketch gives a very poor idea
of the scenery. In one of these excursions I went out of my way to
make a personal attempt on the Makonde bush. The present edge of
the plateau is the result of a far-reaching process of destruction
through erosion and denudation. The Makonde strata are
everywhere cut into by ravines, which, though short, are hundreds of
yards in depth. In consequence of the loose stratification of these
beds, not only are the walls of these ravines nearly vertical, but their
upper end is closed by an equally steep escarpment, so that the
western edge of the Makonde plateau is hemmed in by a series of
deep, basin-like valleys. In order to get from one side of such a ravine
to the other, I cut my way through the bush with a dozen of my men.
It was a very open part, with more grass than scrub, but even so the
short stretch of less than two hundred yards was very hard work; at
the end of it the men’s calicoes were in rags and they themselves
bleeding from hundreds of scratches, while even our strong khaki
suits had not escaped scatheless.
NATIVE PATH THROUGH THE MAKONDE BUSH, NEAR

MAHUTA
I see increasing reason to believe that the view formed some time
back as to the origin of the Makonde bush is the correct one. I have
no doubt that it is not a natural product, but the result of human
occupation. Those parts of the high country where man—as a very
slight amount of practice enables the eye to perceive at once—has not
yet penetrated with axe and hoe, are still occupied by a splendid
timber forest quite able to sustain a comparison with our mixed
forests in Germany. But wherever man has once built his hut or tilled
his field, this horrible bush springs up. Every phase of this process
may be seen in the course of a couple of hours’ walk along the main
road. From the bush to right or left, one hears the sound of the axe—
not from one spot only, but from several directions at once. A few
steps further on, we can see what is taking place. The brush has been
cut down and piled up in heaps to the height of a yard or more,
between which the trunks of the large trees stand up like the last
pillars of a magnificent ruined building. These, too, present a
melancholy spectacle: the destructive Makonde have ringed them—
cut a broad strip of bark all round to ensure their dying off—and also
piled up pyramids of brush round them. Father and son, mother and
son-in-law, are chopping away perseveringly in the background—too
busy, almost, to look round at the white stranger, who usually excites
so much interest. If you pass by the same place a week later, the piles
of brushwood have disappeared and a thick layer of ashes has taken
the place of the green forest. The large trees stretch their
smouldering trunks and branches in dumb accusation to heaven—if
they have not already fallen and been more or less reduced to ashes,
perhaps only showing as a white stripe on the dark ground.
This work of destruction is carried out by the Makonde alike on the
virgin forest and on the bush which has sprung up on sites already
cultivated and deserted. In the second case they are saved the trouble
of burning the large trees, these being entirely absent in the
secondary bush.
After burning this piece of forest ground and loosening it with the
hoe, the native sows his corn and plants his vegetables. All over the
country, he goes in for bed-culture, which requires, and, in fact,
receives, the most careful attention. Weeds are nowhere tolerated in
the south of German East Africa. The crops may fail on the plains,
where droughts are frequent, but never on the plateau with its
abundant rains and heavy dews. Its fortunate inhabitants even have
the satisfaction of seeing the proud Wayao and Wamakua working
for them as labourers, driven by hunger to serve where they were
accustomed to rule.
But the light, sandy soil is soon exhausted, and would yield no
harvest the second year if cultivated twice running. This fact has
been familiar to the native for ages; consequently he provides in
time, and, while his crop is growing, prepares the next plot with axe
and firebrand. Next year he plants this with his various crops and
lets the first piece lie fallow. For a short time it remains waste and
desolate; then nature steps in to repair the destruction wrought by
man; a thousand new growths spring out of the exhausted soil, and
even the old stumps put forth fresh shoots. Next year the new growth
is up to one’s knees, and in a few years more it is that terrible,
impenetrable bush, which maintains its position till the black
occupier of the land has made the round of all the available sites and
come back to his starting point.
The Makonde are, body and soul, so to speak, one with this bush.
According to my Yao informants, indeed, their name means nothing
else but “bush people.” Their own tradition says that they have been
settled up here for a very long time, but to my surprise they laid great
stress on an original immigration. Their old homes were in the
south-east, near Mikindani and the mouth of the Rovuma, whence
their peaceful forefathers were driven by the continual raids of the
Sakalavas from Madagascar and the warlike Shirazis[47] of the coast,
to take refuge on the almost inaccessible plateau. I have studied
African ethnology for twenty years, but the fact that changes of
population in this apparently quiet and peaceable corner of the earth
could have been occasioned by outside enterprises taking place on
the high seas, was completely new to me. It is, no doubt, however,
correct.
The charming tribal legend of the Makonde—besides informing us
of other interesting matters—explains why they have to live in the
thickest of the bush and a long way from the edge of the plateau,
instead of making their permanent homes beside the purling brooks
and springs of the low country.
“The place where the tribe originated is Mahuta, on the southern
side of the plateau towards the Rovuma, where of old time there was
nothing but thick bush. Out of this bush came a man who never
washed himself or shaved his head, and who ate and drank but little.
He went out and made a human figure from the wood of a tree
growing in the open country, which he took home to his abode in the
bush and there set it upright. In the night this image came to life and
was a woman. The man and woman went down together to the
Rovuma to wash themselves. Here the woman gave birth to a still-
born child. They left that place and passed over the high land into the
valley of the Mbemkuru, where the woman had another child, which
was also born dead. Then they returned to the high bush country of
Mahuta, where the third child was born, which lived and grew up. In
course of time, the couple had many more children, and called
themselves Wamatanda. These were the ancestral stock of the
Makonde, also called Wamakonde,[48] i.e., aborigines. Their
forefather, the man from the bush, gave his children the command to
bury their dead upright, in memory of the mother of their race who
was cut out of wood and awoke to life when standing upright. He also
warned them against settling in the valleys and near large streams,
for sickness and death dwelt there. They were to make it a rule to
have their huts at least an hour’s walk from the nearest watering-
place; then their children would thrive and escape illness.”
The explanation of the name Makonde given by my informants is
somewhat different from that contained in the above legend, which I
extract from a little book (small, but packed with information), by
Pater Adams, entitled Lindi und sein Hinterland. Otherwise, my
results agree exactly with the statements of the legend. Washing?
Hapana—there is no such thing. Why should they do so? As it is, the
supply of water scarcely suffices for cooking and drinking; other
people do not wash, so why should the Makonde distinguish himself
by such needless eccentricity? As for shaving the head, the short,
woolly crop scarcely needs it,[49] so the second ancestral precept is
likewise easy enough to follow. Beyond this, however, there is
nothing ridiculous in the ancestor’s advice. I have obtained from
various local artists a fairly large number of figures carved in wood,
ranging from fifteen to twenty-three inches in height, and
representing women belonging to the great group of the Mavia,
Makonde, and Matambwe tribes. The carving is remarkably well
done and renders the female type with great accuracy, especially the
keloid ornamentation, to be described later on. As to the object and
meaning of their works the sculptors either could or (more probably)
would tell me nothing, and I was forced to content myself with the
scanty information vouchsafed by one man, who said that the figures
were merely intended to represent the nembo—the artificial
deformations of pelele, ear-discs, and keloids. The legend recorded
by Pater Adams places these figures in a new light. They must surely
be more than mere dolls; and we may even venture to assume that
they are—though the majority of present-day Makonde are probably
unaware of the fact—representations of the tribal ancestress.
The references in the legend to the descent from Mahuta to the
Rovuma, and to a journey across the highlands into the Mbekuru
valley, undoubtedly indicate the previous history of the tribe, the
travels of the ancestral pair typifying the migrations of their
descendants. The descent to the neighbouring Rovuma valley, with
its extraordinary fertility and great abundance of game, is intelligible
at a glance—but the crossing of the Lukuledi depression, the ascent
to the Rondo Plateau and the descent to the Mbemkuru, also lie
within the bounds of probability, for all these districts have exactly
the same character as the extreme south. Now, however, comes a
point of especial interest for our bacteriological age. The primitive
Makonde did not enjoy their lives in the marshy river-valleys.
Disease raged among them, and many died. It was only after they
had returned to their original home near Mahuta, that the health
conditions of these people improved. We are very apt to think of the
African as a stupid person whose ignorance of nature is only equalled
by his fear of it, and who looks on all mishaps as caused by evil
spirits and malignant natural powers. It is much more correct to
assume in this case that the people very early learnt to distinguish
districts infested with malaria from those where it is absent.
This knowledge is crystallized in the
ancestral warning against settling in the
valleys and near the great waters, the
dwelling-places of disease and death. At the
same time, for security against the hostile
Mavia south of the Rovuma, it was enacted
that every settlement must be not less than a
certain distance from the southern edge of the
plateau. Such in fact is their mode of life at the
present day. It is not such a bad one, and
certainly they are both safer and more
comfortable than the Makua, the recent
intruders from the south, who have made USUAL METHOD OF
good their footing on the western edge of the CLOSING HUT-DOOR
plateau, extending over a fairly wide belt of
country. Neither Makua nor Makonde show in their dwellings
anything of the size and comeliness of the Yao houses in the plain,
especially at Masasi, Chingulungulu and Zuza’s. Jumbe Chauro, a
Makonde hamlet not far from Newala, on the road to Mahuta, is the
most important settlement of the tribe I have yet seen, and has fairly
spacious huts. But how slovenly is their construction compared with
the palatial residences of the elephant-hunters living in the plain.
The roofs are still more untidy than in the general run of huts during
the dry season, the walls show here and there the scanty beginnings
or the lamentable remains of the mud plastering, and the interior is a
veritable dog-kennel; dirt, dust and disorder everywhere. A few huts
only show any attempt at division into rooms, and this consists
merely of very roughly-made bamboo partitions. In one point alone
have I noticed any indication of progress—in the method of fastening
the door. Houses all over the south are secured in a simple but
ingenious manner. The door consists of a set of stout pieces of wood
or bamboo, tied with bark-string to two cross-pieces, and moving in
two grooves round one of the door-posts, so as to open inwards. If
the owner wishes to leave home, he takes two logs as thick as a man’s
upper arm and about a yard long. One of these is placed obliquely
against the middle of the door from the inside, so as to form an angle
of from 60° to 75° with the ground. He then places the second piece
horizontally across the first, pressing it downward with all his might.
It is kept in place by two strong posts planted in the ground a few
inches inside the door. This fastening is absolutely safe, but of course
cannot be applied to both doors at once, otherwise how could the
owner leave or enter his house? I have not yet succeeded in finding
out how the back door is fastened.
MAKONDE LOCK AND KEY AT JUMBE CHAURO

This is the general way of closing a house. The Makonde at Jumbe
Chauro, however, have a much more complicated, solid and original
one. Here, too, the door is as already described, except that there is
only one post on the inside, standing by itself about six inches from
one side of the doorway. Opposite this post is a hole in the wall just
large enough to admit a man’s arm. The door is closed inside by a
large wooden bolt passing through a hole in this post and pressing
with its free end against the door. The other end has three holes into
which fit three pegs running in vertical grooves inside the post. The
door is opened with a wooden key about a foot long, somewhat
curved and sloped off at the butt; the other end has three pegs
corresponding to the holes, in the bolt, so that, when it is thrust
through the hole in the wall and inserted into the rectangular
opening in the post, the pegs can be lifted and the bolt drawn out.[50]
MODE OF INSERTING THE KEY
With no small pride first one householder and then a second

showed me on the spot the action of this greatest invention of the
Makonde Highlands. To both with an admiring exclamation of
“Vizuri sana!” (“Very fine!”). I expressed the wish to take back these
marvels with me to Ulaya, to show the Wazungu what clever fellows
the Makonde are. Scarcely five minutes after my return to camp at
Newala, the two men came up sweating under the weight of two
heavy logs which they laid down at my feet, handing over at the same
time the keys of the fallen fortress. Arguing, logically enough, that if
the key was wanted, the lock would be wanted with it, they had taken
their axes and chopped down the posts—as it never occurred to them
to dig them out of the ground and so bring them intact. Thus I have
two badly damaged specimens, and the owners, instead of praise,
come in for a blowing-up.
The Makua huts in the environs of Newala are especially
miserable; their more than slovenly construction reminds one of the
temporary erections of the Makua at Hatia’s, though the people here
have not been concerned in a war. It must therefore be due to
congenital idleness, or else to the absence of a powerful chief. Even
the baraza at Mlipa’s, a short hour’s walk south-east of Newala,
shares in this general neglect. While public buildings in this country
are usually looked after more or less carefully, this is in evident
danger of being blown over by the first strong easterly gale. The only
attractive object in this whole district is the grave of the late chief
Mlipa. I visited it in the morning, while the sun was still trying with
partial success to break through the rolling mists, and the circular
grove of tall euphorbias, which, with a broken pot, is all that marks
the old king’s resting-place, impressed one with a touch of pathos.
Even my very materially-minded carriers seemed to feel something
of the sort, for instead of their usual ribald songs, they chanted
solemnly, as we marched on through the dense green of the Makonde
bush:—
“We shall arrive with the great master; we stand in a row and have
no fear about getting our food and our money from the Serkali (the
Government). We are not afraid; we are going along with the great
master, the lion; we are going down to the coast and back.”
With regard to the characteristic features of the various tribes here
on the western edge of the plateau, I can arrive at no other
conclusion than the one already come to in the plain, viz., that it is
impossible for anyone but a trained anthropologist to assign any
given individual at once to his proper tribe. In fact, I think that even
an anthropological specialist, after the most careful examination,
might find it a difficult task to decide. The whole congeries of peoples
collected in the region bounded on the west by the great Central
African rift, Tanganyika and Nyasa, and on the east by the Indian
Ocean, are closely related to each other—some of their languages are
only distinguished from one another as dialects of the same speech,
and no doubt all the tribes present the same shape of skull and
structure of skeleton. Thus, surely, there can be no very striking
differences in outward appearance.
Even did such exist, I should have no time
to concern myself with them, for day after day,
I have to see or hear, as the case may be—in
any case to grasp and record—an
extraordinary number of ethnographic
phenomena. I am almost disposed to think it
fortunate that some departments of inquiry, at
least, are barred by external circumstances.
Chief among these is the subject of iron-
working. We are apt to think of Africa as a
country where iron ore is everywhere, so to
speak, to be picked up by the roadside, and
where it would be quite surprising if the
inhabitants had not learnt to smelt the
material ready to their hand. In fact, the
knowledge of this art ranges all over the
continent, from the Kabyles in the north to the
Kafirs in the south. Here between the Rovuma
and the Lukuledi the conditions are not so
favourable. According to the statements of the
Makonde, neither ironstone nor any other
form of iron ore is known to them. They have
not therefore advanced to the art of smelting
the metal, but have hitherto bought all their
THE ANCESTRESS OF
THE MAKONDE
iron implements from neighbouring tribes.
Even in the plain the inhabitants are not much
better off. Only one man now living is said to
understand the art of smelting iron. This old fundi lives close to
Huwe, that isolated, steep-sided block of granite which rises out of
the green solitude between Masasi and Chingulungulu, and whose
jagged and splintered top meets the traveller’s eye everywhere. While
still at Masasi I wished to see this man at work, but was told that,
frightened by the rising, he had retired across the Rovuma, though
he would soon return. All subsequent inquiries as to whether the
fundi had come back met with the genuine African answer, “Bado”
(“Not yet”).
BRAZIER
Some consolation was afforded me by a brassfounder, whom I

came across in the bush near Akundonde’s. This man is the favourite
of women, and therefore no doubt of the gods; he welds the glittering
brass rods purchased at the coast into those massive, heavy rings
which, on the wrists and ankles of the local fair ones, continually give
me fresh food for admiration. Like every decent master-craftsman he
had all his tools with him, consisting of a pair of bellows, three
crucibles and a hammer—nothing more, apparently. He was quite
willing to show his skill, and in a twinkling had fixed his bellows on
the ground. They are simply two goat-skins, taken off whole, the four
legs being closed by knots, while the upper opening, intended to
admit the air, is kept stretched by two pieces of wood. At the lower
end of the skin a smaller opening is left into which a wooden tube is
stuck. The fundi has quickly borrowed a heap of wood-embers from
the nearest hut; he then fixes the free ends of the two tubes into an
earthen pipe, and clamps them to the ground by means of a bent
piece of wood. Now he fills one of his small clay crucibles, the dross
on which shows that they have been long in use, with the yellow
material, places it in the midst of the embers, which, at present are
only faintly glimmering, and begins his work. In quick alternation
the smith’s two hands move up and down with the open ends of the
bellows; as he raises his hand he holds the slit wide open, so as to let
the air enter the skin bag unhindered. In pressing it down he closes
the bag, and the air puffs through the bamboo tube and clay pipe into
the fire, which quickly burns up. The smith, however, does not keep
on with this work, but beckons to another man, who relieves him at
the bellows, while he takes some more tools out of a large skin pouch
carried on his back. I look on in wonder as, with a smooth round
stick about the thickness of a finger, he bores a few vertical holes into
the clean sand of the soil. This should not be difficult, yet the man
seems to be taking great pains over it. Then he fastens down to the
ground, with a couple of wooden clamps, a neat little trough made by
splitting a joint of bamboo in half, so that the ends are closed by the
two knots. At last the yellow metal has attained the right consistency,
and the fundi lifts the crucible from the fire by means of two sticks
split at the end to serve as tongs. A short swift turn to the left—a
tilting of the crucible—and the molten brass, hissing and giving forth
clouds of smoke, flows first into the bamboo mould and then into the
holes in the ground.
The technique of this backwoods craftsman may not be very far
advanced, but it cannot be denied that he knows how to obtain an
adequate result by the simplest means. The ladies of highest rank in
this country—that is to say, those who can afford it, wear two kinds
of these massive brass rings, one cylindrical, the other semicircular
in section. The latter are cast in the most ingenious way in the
bamboo mould, the former in the circular hole in the sand. It is quite
a simple matter for the fundi to fit these bars to the limbs of his fair
customers; with a few light strokes of his hammer he bends the
pliable brass round arm or ankle without further inconvenience to
the wearer.
SHAPING THE POT
SMOOTHING WITH MAIZE-COB
CUTTING THE EDGE

FINISHING THE BOTTOM
LAST SMOOTHING BEFORE

BURNING
FIRING THE BRUSH-PILE

LIGHTING THE FARTHER SIDE OF
THE PILE
TURNING THE RED-HOT VESSEL
NYASA WOMAN MAKING POTS AT MASASI

Pottery is an art which must always and everywhere excite the
interest of the student, just because it is so intimately connected with
the development of human culture, and because its relics are one of
the principal factors in the reconstruction of our own condition in
prehistoric times. I shall always remember with pleasure the two or
three afternoons at Masasi when Salim Matola’s mother, a slightly-
built, graceful, pleasant-looking woman, explained to me with
touching patience, by means of concrete illustrations, the ceramic art
of her people. The only implements for this primitive process were a
lump of clay in her left hand, and in the right a calabash containing
the following valuables: the fragment of a maize-cob stripped of all
its grains, a smooth, oval pebble, about the size of a pigeon’s egg, a
few chips of gourd-shell, a bamboo splinter about the length of one’s
hand, a small shell, and a bunch of some herb resembling spinach.
Nothing more. The woman scraped with the
shell a round, shallow hole in the soft, fine
sand of the soil, and, when an active young
girl had filled the calabash with water for her,
she began to knead the clay. As if by magic it
gradually assumed the shape of a rough but
already well-shaped vessel, which only wanted
a little touching up with the instruments
before mentioned. I looked out with the
MAKUA WOMAN closest attention for any indication of the use
MAKING A POT. of the potter’s wheel, in however rudimentary
SHOWS THE a form, but no—hapana (there is none). The
BEGINNINGS OF THE embryo pot stood firmly in its little
POTTER’S WHEEL
depression, and the woman walked round it in
a stooping posture, whether she was removing
small stones or similar foreign bodies with the maize-cob, smoothing
the inner or outer surface with the splinter of bamboo, or later, after
letting it dry for a day, pricking in the ornamentation with a pointed
bit of gourd-shell, or working out the bottom, or cutting the edge
with a sharp bamboo knife, or giving the last touches to the finished
vessel. This occupation of the women is infinitely toilsome, but it is
without doubt an accurate reproduction of the process in use among
our ancestors of the Neolithic and Bronze ages.
There is no doubt that the invention of pottery, an item in human
progress whose importance cannot be over-estimated, is due to
women. Rough, coarse and unfeeling, the men of the horde range
over the countryside. When the united cunning of the hunters has
succeeded in killing the game; not one of them thinks of carrying
home the spoil. A bright fire, kindled by a vigorous wielding of the
drill, is crackling beside them; the animal has been cleaned and cut
up secundum artem, and, after a slight singeing, will soon disappear
under their sharp teeth; no one all this time giving a single thought
to wife or child.
To what shifts, on the other hand, the primitive wife, and still more
the primitive mother, was put! Not even prehistoric stomachs could
endure an unvarying diet of raw food. Something or other suggested
the beneficial effect of hot water on the majority of approved but
indigestible dishes. Perhaps a neighbour had tried holding the hard
roots or tubers over the fire in a calabash filled with water—or maybe
an ostrich-egg-shell, or a hastily improvised vessel of bark. They
became much softer and more palatable than they had previously
been; but, unfortunately, the vessel could not stand the fire and got
charred on the outside. That can be remedied, thought our
ancestress, and plastered a layer of wet clay round a similar vessel.
This is an improvement; the cooking utensil remains uninjured, but
the heat of the fire has shrunk it, so that it is loose in its shell. The
next step is to detach it, so, with a firm grip and a jerk, shell and
kernel are separated, and pottery is invented. Perhaps, however, the
discovery which led to an intelligent use of the burnt-clay shell, was
made in a slightly different way. Ostrich-eggs and calabashes are not
to be found in every part of the world, but everywhere mankind has
arrived at the art of making baskets out of pliant materials, such as
bark, bast, strips of palm-leaf, supple twigs, etc. Our inventor has no
water-tight vessel provided by nature. “Never mind, let us line the
basket with clay.” This answers the purpose, but alas! the basket gets
burnt over the blazing fire, the woman watches the process of
cooking with increasing uneasiness, fearing a leak, but no leak
appears. The food, done to a turn, is eaten with peculiar relish; and
the cooking-vessel is examined, half in curiosity, half in satisfaction
at the result. The plastic clay is now hard as stone, and at the same
time looks exceedingly well, for the neat plaiting of the burnt basket
is traced all over it in a pretty pattern. Thus, simultaneously with
pottery, its ornamentation was invented.
Primitive woman has another claim to respect. It was the man,
roving abroad, who invented the art of producing fire at will, but the
woman, unable to imitate him in this, has been a Vestal from the
earliest times. Nothing gives so much trouble as the keeping alight of
the smouldering brand, and, above all, when all the men are absent
from the camp. Heavy rain-clouds gather, already the first large
drops are falling, the first gusts of the storm rage over the plain. The
little flame, a greater anxiety to the woman than her own children,
flickers unsteadily in the blast. What is to be done? A sudden thought
occurs to her, and in an instant she has constructed a primitive hut
out of strips of bark, to protect the flame against rain and wind.
This, or something very like it, was the way in which the principle
of the house was discovered; and even the most hardened misogynist
cannot fairly refuse a woman the credit of it. The protection of the
hearth-fire from the weather is the germ from which the human
dwelling was evolved. Men had little, if any share, in this forward
step, and that only at a late stage. Even at the present day, the
plastering of the housewall with clay and the manufacture of pottery
are exclusively the women’s business. These are two very significant
survivals. Our European kitchen-garden, too, is originally a woman’s
invention, and the hoe, the primitive instrument of agriculture, is,
characteristically enough, still used in this department. But the
noblest achievement which we owe to the other sex is unquestionably
the art of cookery. Roasting alone—the oldest process—is one for
which men took the hint (a very obvious one) from nature. It must
have been suggested by the scorched carcase of some animal
overtaken by the destructive forest-fires. But boiling—the process of
improving organic substances by the help of water heated to boiling-
point—is a much later discovery. It is so recent that it has not even
yet penetrated to all parts of the world. The Polynesians understand
how to steam food, that is, to cook it, neatly wrapped in leaves, in a
hole in the earth between hot stones, the air being excluded, and
(sometimes) a few drops of water sprinkled on the stones; but they
do not understand boiling.
To come back from this digression, we find that the slender Nyasa
woman has, after once more carefully examining the finished pot,
put it aside in the shade to dry. On the following day she sends me
word by her son, Salim Matola, who is always on hand, that she is
going to do the burning, and, on coming out of my house, I find her
already hard at work. She has spread on the ground a layer of very
dry sticks, about as thick as one’s thumb, has laid the pot (now of a
yellowish-grey colour) on them, and is piling brushwood round it.
My faithful Pesa mbili, the mnyampara, who has been standing by,
most obligingly, with a lighted stick, now hands it to her. Both of
them, blowing steadily, light the pile on the lee side, and, when the
flame begins to catch, on the weather side also. Soon the whole is in a
blaze, but the dry fuel is quickly consumed and the fire dies down, so
that we see the red-hot vessel rising from the ashes. The woman
turns it continually with a long stick, sometimes one way and
sometimes another, so that it may be evenly heated all over. In
twenty minutes she rolls it out of the ash-heap, takes up the bundle
of spinach, which has been lying for two days in a jar of water, and
sprinkles the red-hot clay with it. The places where the drops fall are
marked by black spots on the uniform reddish-brown surface. With a
sigh of relief, and with visible satisfaction, the woman rises to an
erect position; she is standing just in a line between me and the fire,
from which a cloud of smoke is just rising: I press the ball of my
camera, the shutter clicks—the apotheosis is achieved! Like a
priestess, representative of her inventive sex, the graceful woman
stands: at her feet the hearth-fire she has given us beside her the
invention she has devised for us, in the background the home she has
built for us.
At Newala, also, I have had the manufacture of pottery carried on
in my presence. Technically the process is better than that already
described, for here we find the beginnings of the potter’s wheel,
which does not seem to exist in the plains; at least I have seen
nothing of the sort. The artist, a frightfully stupid Makua woman, did
not make a depression in the ground to receive the pot she was about
to shape, but used instead a large potsherd. Otherwise, she went to
work in much the same way as Salim’s mother, except that she saved
herself the trouble of walking round and round her work by squatting
at her ease and letting the pot and potsherd rotate round her; this is
surely the first step towards a machine. But it does not follow that
the pot was improved by the process. It is true that it was beautifully
rounded and presented a very creditable appearance when finished,
but the numerous large and small vessels which I have seen, and, in
part, collected, in the “less advanced” districts, are no less so. We
moderns imagine that instruments of precision are necessary to
produce excellent results. Go to the prehistoric collections of our
museums and look at the pots, urns and bowls of our ancestors in the
dim ages of the past, and you will at once perceive your error.
MAKING LONGITUDINAL CUT IN
BARK
DRAWING THE BARK OFF THE LOG
REMOVING THE OUTER BARK

BEATING THE BARK
WORKING THE BARK-CLOTH AFTER BEATING, TO MAKE IT

SOFT
MANUFACTURE OF BARK-CLOTH AT NEWALA

To-day, nearly the whole population of German East Africa is
clothed in imported calico. This was not always the case; even now in
some parts of the north dressed skins are still the prevailing wear,
and in the north-western districts—east and north of Lake
Tanganyika—lies a zone where bark-cloth has not yet been
superseded. Probably not many generations have passed since such
bark fabrics and kilts of skins were the only clothing even in the
south. Even to-day, large quantities of this bright-red or drab
material are still to be found; but if we wish to see it, we must look in
the granaries and on the drying stages inside the native huts, where
it serves less ambitious uses as wrappings for those seeds and fruits
which require to be packed with special care. The salt produced at
Masasi, too, is packed for transport to a distance in large sheets of
bark-cloth. Wherever I found it in any degree possible, I studied the
process of making this cloth. The native requisitioned for the
purpose arrived, carrying a log between two and three yards long and
as thick as his thigh, and nothing else except a curiously-shaped
mallet and the usual long, sharp and pointed knife which all men and
boys wear in a belt at their backs without a sheath—horribile dictu!
[51]
Silently he squats down before me, and with two rapid cuts has
drawn a couple of circles round the log some two yards apart, and
slits the bark lengthwise between them with the point of his knife.
With evident care, he then scrapes off the outer rind all round the
log, so that in a quarter of an hour the inner red layer of the bark
shows up brightly-coloured between the two untouched ends. With
some trouble and much caution, he now loosens the bark at one end,
and opens the cylinder. He then stands up, takes hold of the free
edge with both hands, and turning it inside out, slowly but steadily
pulls it off in one piece. Now comes the troublesome work of
scraping all superfluous particles of outer bark from the outside of
the long, narrow piece of material, while the inner side is carefully
scrutinised for defective spots. At last it is ready for beating. Having
signalled to a friend, who immediately places a bowl of water beside
him, the artificer damps his sheet of bark all over, seizes his mallet,
lays one end of the stuff on the smoothest spot of the log, and
hammers away slowly but continuously. “Very simple!” I think to
myself. “Why, I could do that, too!”—but I am forced to change my
opinions a little later on; for the beating is quite an art, if the fabric is
not to be beaten to pieces. To prevent the breaking of the fibres, the
stuff is several times folded across, so as to interpose several
thicknesses between the mallet and the block. At last the required
state is reached, and the fundi seizes the sheet, still folded, by both
ends, and wrings it out, or calls an assistant to take one end while he
holds the other. The cloth produced in this way is not nearly so fine
and uniform in texture as the famous Uganda bark-cloth, but it is
quite soft, and, above all, cheap.
Now, too, I examine the mallet. My craftsman has been using the
simpler but better form of this implement, a conical block of some
hard wood, its base—the striking surface—being scored across and
across with more or less deeply-cut grooves, and the handle stuck
into a hole in the middle. The other and earlier form of mallet is
shaped in the same way, but the head is fastened by an ingenious
network of bark strips into the split bamboo serving as a handle. The
observation so often made, that ancient customs persist longest in
connection with religious ceremonies and in the life of children, here
finds confirmation. As we shall soon see, bark-cloth is still worn
during the unyago,[52] having been prepared with special solemn
ceremonies; and many a mother, if she has no other garment handy,
will still put her little one into a kilt of bark-cloth, which, after all,
looks better, besides being more in keeping with its African
surroundings, than the ridiculous bit of print from Ulaya.
MAKUA WOMEN

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International Management: Culture,

Strategy, and Behavior 9th Edition,

like to give special recognition to two international management scholars: Henry H.

Thomas M. Abbott, Post University Jae C. Jung, University of Missouri–

Our thanks, too, to the reviewers of previous editions of the text:

Yohannan T. Abraham, Southwest Missouri Joseph Richard Goldman, University of

Douglas M. McCabe, Georgetown Owen Sevier, University of Central

Fred Luthans and Jonathan P. Doh

setting the standard.

from research and Thoroughly Revised and Updated

Thoroughly Updated and/or New Cases,

• New and/or updated country spotlights, “International Management

Totally Revised Instructor and Student Support

• The Instructor’s Manual offers a summary of Learning Objectives

Assurance of Learning Ready

JONATHAN P. DOH is the Herbert G. Rammrath Chair in International Business, found-

1 Globalization and International Linkages 2

The Role of Culture Part Two

4 The Meanings and Dimensions of Culture 110

International Strategic Management Part Three

8 Strategy Formulation and Implementation 274

Brief Integrative Case 3.2: Can Sony Regain Its Innovative

Part Four Organizational Behavior and Human

12 Motivation Across Cultures 422

Skill-Building and Experiential Exercises

1 Globalization and International Linkages 2

The World of International Management—Revisited 30

2 The Political, Legal, and Technological Environment 36

The World of International Management—Revisited 58

3 Ethics, Social Responsibility, and Sustainability 62

The World of International Management—Revisited 83

Part Two The Role of Culture

4 The Meanings and Dimensions of Culture 110

The Nature of Culture 112

The World of International Management—Revisited 141

5 Managing Across Cultures 146

The World of International Management—Revisited 170

6 Organizational Cultures and Diversity 174

The Nature of Organizational Culture 176

The World of International Management—Revisited 196

7 Cross-Cultural Communication and Negotiation 200

Negotiation Tactics 228

The World of International Management—Revisited 234

International Strategic Management Part Three

8 Strategy Formulation and Implementation 274

The World of International Management—Revisited 302

9 Entry Strategies and Organizational Structures 306

The World of International Management—Revisited 338

10 Managing Political Risk, Government Relations,

Techniques for Responding to Political Risk 352

The World of International Management—Revisited 361

11 Management Decision and Control 366

The World of International Management—Revisited 388

Part Four Organizational Behavior and

12 Motivation Across Cultures 422

The World of International Management—Revisited 450

13 Leadership Across Cultures 454

Attitudes of European Managers toward Leadership Practices 465

The World of International Management—Revisited 487

14 Human Resource Selection and Development

Spouses and Dependents or Work-Family Issues 506

The World of International Management—Revisited 531

Skill-Building and Experiential Exercises