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Brief Contents
Preface 20
Part 1 Foundation Concepts 34

1. Introduction: What Is International Business? 34
2. Globalization of Markets and the Internationalization of the Firm 62
Part 2 The Environment of International Business 92

3. The Cultural Environment of International Business 92
4. Ethics, Corporate Social Responsibility, Sustainability, and Governance
in International Business 124
5. Theories of International Trade and Investment 152
6. Political and Legal Systems in National Environments 182
7. Government Intervention and Regional Economic Integration 210
8. Understanding Emerging Markets 246
9. The International Monetary and Financial Environment 276
10. Financial Management and Accounting in the Global Firm 302
Part 3 Strategy and Opportunity Assessment 332

11. Strategy and Organization in the International Firm 332
12. Global Market Opportunity Assessment 366
Part 4 Entering and Working in International Markets 394

13. Exporting and Global Sourcing 394
14. Foreign Direct Investment and Collaborative Ventures 428
15. Licensing, Franchising, and Other Contractual Strategies 458
Part 5 Functional Area Excellence 486

16. Marketing in the Global Firm 486
17. Human Resource Management in the Global Firm 516
Glossary 544
Author Index 550
Company Index 557
Subject Index 560
7
Contents
Preface 20
Part 1 Foundation Concepts 34

1 Introduction: What Is International Business? 34
• China Globalizes London’s Black Cabs 34
What Are the Key Concepts in International Business? 39
The Nature of International Trade 39
The Nature of International Investment 40
Services as Well as Products 41
The International Financial Services Sector 43
How Does International Business Differ from Domestic Business? 44
The Four Risks in Internationalization 44
Who Participates in International Business? 46
Focal Firms in International Business 47
Small and Medium-Sized Enterprises 48
Born Global Firms 49
Governments and Nongovernmental Organizations 49
Why Do Firms Internationalize? 50
Why Study International Business? 52
Facilitator of the Global Economy and Interconnectedness 52
Contributor to National Economic Well-Being 52
A Competitive Advantage for the Firm 52
j You Can Do It | Recent Grad in IB: Mary Lyles 53
A Competitive Advantage for You 53
An Opportunity to Support Ethics, Sustainability, and Corporate
Citizenship 54
CKR Career Preparation Kit: Tangible Process Tools and Travel Abroad
Preparation Checklist 54
j Closing Case: Internationalization at Vodafone 55
j End-of-Chapter Review: Key Terms 57 Summary 57 Test Your
Comprehension 58 Apply Your Understanding 58
globalEDGE™ Internet Exercises 59
Endnotes 60
2 Globalization of Markets and the Internationalization

of the Firm 62
• Skype: A “Born Global” Business 62
Phases of Globalization 64
Market Globalization: Organizing Framework 66
Driving Forces of Globalization 68
Technological Advances and Globalization 69
Information Technology 69
Digitalization 69
Communications 73
8
CONTENTS 9
Manufacturing 73
Transportation 74
Dimensions of Market Globalization 74
Firm-Level Consequences of Market Globalization: Internationalization
of the Firm’s Value Chain 75
j You Can Do It | Recent Grad in IB: Terrance Rogers 77
Societal Consequences of Globalization 77
Contagion: Rapid Spread of Monetary and Financial Crises 78
Loss of National Sovereignty 78
Offshoring 79
Reshoring 79
Effect on the Poor 79
Effect on Sustainability and the Natural Environment 81
Effect on National Culture 81
Globalization and Africa 84
j Closing Case: A Debate on the Good and Harm of Globalization 85
Endnotes 89
Part 2 The Environment of International Business 92

3 The Cultural Environment of International Business 92
• Hallyu and the Rising Influence of the Korean Global Culture 92
Culture and Cross-Cultural Risk 94
What Culture Is Not 96
Socialization and Acculturation 97
Dimensions of Culture 97
Values and Attitudes 97
Manners and Customs 97
Perceptions of Time 98
Perceptions of Space 98
Symbolic Productions 99
Material Productions and Creative Expressions 100
Education 100
Social Structure 101
Role of Language and Religion in Culture 102
Verbal Language 102
Nonverbal Communication 104
Religion 105
Culture’s Effect in International Business 109
Models and Explanations of Culture 111
Cultural Metaphors 111
High- and Low-Context Cultures 111
Hofstede’s Research on National Culture 112
Deal Versus Relationship Orientation 114
10 CONTENTS
Managerial Implications of Culture 114

Cultural Orientations 115
How to Acquire Cross-Cultural Competence 115
j Closing Case: Hollywood Movies and Global Culture 117
Endnotes 122
4 Ethics, Corporate Social Responsibility, Sustainability,

and Governance in International Business 124
• Improving the Lives of Bangladeshi Garments Factory Workers 124
Ethical Behavior and Its Importance in International Business 126
Components of Ethical Behavior 126
Value of Ethical Behavior 127
Unethical Behavior 127
Ethical Standards and Dilemmas Around the World 128
Relativism and Normativism 129
Ethical Challenges in International Business 130
Corruption 130
Bribery 131
Harmful Work Environment 133
Unethical Business Practices 133
Harmful Global Sourcing 133
Illicit Products and Marketing 134
Intellectual Property Infringement 134
Corporate Social Responsibility 135
Settings of Corporate Social Responsibility 136
Successes and Failures of CSR 136
Sustainability 138
Company Role in Sustainability 139
The Role of Corporate Governance 140
Embracing Ethical Behavior 141
Ethical Standard Approaches for Corporate Governance 141
A Global Consensus 142
Going Deep, Wide, and Local 142
Benefits of Corporate Governance 142
j You Can Do It | Recent Grad in IB: Javier Estrada 143
A Framework Tool for Making Ethical Decisions 144
j Closing Case: Scandal at Volkswagen 145
Endnotes 149
5 Theories of International Trade and Investment 152

• Apple’s Advantages in Global Competition 152
Why Do Nations Trade? 156
CONTENTS 11
Classical Theories 156

How Can Nations Enhance Their Competitive Advantage? 162
The Competitive Advantage of Nations 162
Determinants of National Competitiveness 163
National Industrial Policy 164
National Industrial Policy in Practice 165
Why and How Do Firms Internationalize? 166
Internationalization Process of the Firm 167
Born Global Firms 167
How Can Internationalizing Firms Gain and Sustain Competitive
Advantage? 168
FDI-Based Explanations 168
Dunning’s Eclectic Paradigm 172
Non-FDI-Based Explanations 173
j Closing Case: Unilever’s Comparative and Competitive Advantages 174
Endnotes 180
6 Political and Legal Systems in National Environments 182

• Galileo: Regional Disintegration and Its Consequences 182
How Prevalent Is Country Risk? 185
Political and Legal Environments in International Business 186
Political Systems 187
Authoritarianism 187
Socialism 188
Democracy 188
National Governance and Economic Prosperity 189
The Relationship Between Political Systems and Economic Systems 190
Legal Systems 191
Common Law 191
Civil Law 192
Religious Law 192
Mixed Systems 193
Participants in Political and Legal Systems 193
Government 194
International Organizations 194
Regional Trade Organizations 194
Special Interest Groups 194
Competing Firms 194
Types of Country Risk Produced by Political Systems 195
Government Takeover of Corporate Assets 195
Embargoes and Sanctions 196
Boycotts Against Firms or Nations 196
Terrorism 197
War, Insurrection, and Violence 197
12 CONTENTS
Types of Country Risk Produced by Legal Systems 197

Country Risk Arising from the Host-Country Legal Environment 197
Country Risk Arising from the Home-Country Legal Environment 199
j You Can Do It | Recent Grad in IB: Christopher Johnson 200
Managing Country Risk 201
Proactive Environmental Scanning 201
Strict Adherence to Ethical Standards 202
Alliances with Qualified Local Partners 202
Protection Through Legal Contracts 202
j Closing Case: The Global Biopharmaceutical Industry: Political, Legal,
and Ethical Dilemmas 202
Endnotes 208
7 Government Intervention and Regional Economic

Integration 210
• Tripartism: Singapore’s Key Competitive Advantage 210
The Nature of Government Intervention 213
Defensive Rationale 214
Offensive Rationale 215
Instruments of Government Intervention 215
Tariffs 216
Nontariff Trade Barriers 217
Investment Barriers 219
Subsidies and Other Government Support Programs 220
Evolution and Consequences of Government Intervention 221
How Firms Can Respond to Government Intervention 226
Strategies for Managers 226
j You Can Do It | Recent Grad in IB: Ashley Lumb 228
Regional Integration and Economic Blocs 229
Levels of Regional Integration 229
Leading Economic Blocs 231
The European Union 231
North American Free Trade Agreement (NAFTA) 234
Advantages and Implications of Regional Integration 235
Expand Market Size 235
Achieve Scale Economies and Enhanced Productivity 235
Attract Direct Investment from Outside the Bloc 235
Acquire Stronger Defensive and Political Posture 236
j Closing Case: South Korean Industry Policy and Economic
Modernization 236
Endnotes 243
CONTENTS 13
8 Understanding Emerging Markets 246

• New Global Challengers: Top Firms from Emerging Markets 246
Advanced Economies, Developing Economies,
and Emerging Markets 248
Advanced Economies 249
Developing Economies 249
Emerging Market Economies 252
What Makes Emerging Markets Attractive for International Business? 255
Emerging Markets as Target Markets 255
Emerging Markets as Manufacturing Bases 256
Emerging Markets as Sourcing Destinations 256
Assessing the True Potential of Emerging Markets 257
Per-Capita Income as an Indicator of Market Potential 257
Middle Class as an Indicator of Market Potential 259
Risks and Challenges of Emerging Markets 260
Political Instability 260
Weak Intellectual Property Protection 260
Bureaucracy, Red Tape, and Lack of Transparency 260
Poor Physical Infrastructure 260
Partner Availability and Qualifications 260
Likely Resistance from Family Conglomerates 261
Success Strategies for Emerging Markets 262
Customize Offerings to Unique Emerging Market Needs 262
Partner with Family Conglomerates 262
Target Governments in Emerging Markets 263
j You Can Do It | Recent Grads in IB: Andrew and Jamie Waskey 264
Skillfully Challenge Emerging Market Competitors 264
Corporate Social Responsibility, Sustainability, and the Crisis
of Global Poverty 265
Foster Economic Development 265
Microfinance to Facilitate Entrepreneurship 266
The Special Case of Africa 266
j Closing Case: Astra International: Building Successful International
Business Around Shifting National Government Policy 267
Endnotes 273
9 The International Monetary and Financial Environment 276

• The European Union and the Euro 276
Exchange Rates and Currencies in International Business 278
Convertible and Nonconvertible Currencies 279
Foreign Exchange Markets 280
Currency Risk 280
How Exchange Rates Are Determined 282
Economic Growth 282
Inflation and Interest Rates 283
14 CONTENTS
Market Psychology 283

Government Action 284
Emergence of the Modern Exchange Rate System 284
The Bretton Woods Agreement 284
The Modern Exchange Rate System 285
The Monetary and Financial Systems 286
International Monetary System 286
Global Financial System 286
Key Players in the Monetary and Financial Systems 287
The Firm 287
National Stock Exchanges and Bond Markets 288
Commercial Banks 289
j You Can Do It | Recent Grad in IB: Maria Petit 290
Central Banks 291
The Bank for International Settlements 292
International Monetary Fund 292
The World Bank 293
The Global Debt Crisis 293
j Closing Case: Asian IFCs: Singapore and Hong Kong 295
Endnotes 300
10 Financial Management and Accounting in the Global Firm 302

• How a Small Firm Navigates Currency Risk 302
KEY TASKS IN INTERNATIONAL FINANCIAL MANAGEMENT 304
Choosing a Capital Structure 305
Raising Funds for the Firm 305
Financial Centers 306
Sources of Funds for International Operations 307
Managing Working Capital and Cash Flow 310
Methods for Transferring Funds Within the MNE 310
Multilateral Netting 311
Performing Capital Budgeting 311
Net Present Value Analysis of Capital Investment Projects 312
Managing Currency Risk 313
Three Types of Currency Exposure 313
Foreign-Exchange Trading 314
Types of Currency Traders 314
Exchange-Rate Forecasting 315
Managing Exposure to Currency Risk Through Hedging 316
Hedging Instruments 316
Best Practice in Minimizing Currency Exposure 317
Managing the Diversity of International Accounting
and Tax Practices 318
Transparency in Financial Reporting 318
CONTENTS 15
Trends Toward Harmonization 319

Consolidating the Financial Statements of Subsidiaries 319
International Taxation 320
Managing International Finance to Minimize Tax Burden 321
j Closing Case: International Financial Management at Tektronix 322
Endnotes 329
Part 3 Strategy and Opportunity Assessment 332

11 Strategy and Organization in the International
Firm 332
• IKEA: Global Retailing Success Story 332
Strategy in International Business 335
Efficiency 335
Flexibility 335
Learning 335
Building the Global Firm 336
Visionary Leadership 337
Organizational Culture 338
Organizational Processes 339
The Distinction Between Multidomestic and Global Industries 340
The Integration-Responsiveness Framework 341
Strategies Based on the Integration-Responsiveness
Framework 343
Organizational Structure in International Business 346
Centralized or Decentralized Structure? 346
Organizational Structures for International Operations 348
Foreign Market Entry Strategies 354
j Closing Case: Global Strategy at Lenovo 357
Endnotes 363
12 Global Market Opportunity Assessment 366

• Estimating Demand in Emerging Markets 366
Analyzing Organizational Readiness to Internationalize 370
Assessing the Suitability of Products and Services
for Foreign Markets 371
Screening Countries to Identify Target Markets 373
Screening Countries for Exporting 373
Country Screening for Foreign Direct Investment 378
Country Screening for Manufacturing Competitiveness and Sourcing 379
16 CONTENTS
Assessing Industry Market Potential 379

Data Sources for Estimating Industry Market Potential 381
j You Can Do It | Recent Grad in IB: Natasha Brown 382
Choosing Foreign Business Partners 382
Criteria for Choosing a Partner 383
Searching for Prospective Partners 383
Estimating Company Sales Potential 384
Practical Approaches to Estimating Company Sales Potential 385
In Conclusion 386
j Closing Case: Shifting Ice: Big Changes at Icebreaker 387
Endnotes 393
Part 4 Entering and Working in International

Markets 394
13 Exporting and Global Sourcing 394
• Maersk and the Global Container Business 394
Exporting as a Foreign Market Entry Strategy 396
Service Sector Exports 397
A Systematic Approach to Exporting 398
Importing 400
Managing Export-Import Transactions 400
Documentation 400
Shipping and Incoterms 401
Payment Methods in Exporting and Importing 402
Financing 405
Identifying and Working with Foreign Intermediaries 405
Finding Foreign Intermediaries 407
Working with Foreign Intermediaries 407
When Intermediary Relations Go Bad 408
Outsourcing, Global Sourcing, and Offshoring 409
Decision 1: Outsource or Not? 409
Decision 2: Where in the World Should Value-Adding Activities
Be Located? 409
Global Sourcing 410
Benefits, Risks, and Responsibilities of Global
Sourcing 414
Benefits of Global Sourcing 414
Risks of Global Sourcing 415
Reshoring and Nearshoring 416
Corporate Social Responsibility 417
Global Sourcing Strategies and Supply-Chain
Management 417
Global Supply-Chain Management 418
CONTENTS 17
j Closing Case: Inditex and Zara: A Tale of Comparative Advantages 421

Endnotes 426
14 Foreign Direct Investment and Collaborative

Ventures 428
• Huawei Invests in Africa 428
International Investment and Collaboration 430
Volume of Foreign Direct Investment and Collaborative
Ventures 431
Most Active Firms in FDI 431
Service Firms and FDI 432
Leading Destinations for FDI 432
Factors to Consider in Choosing FDI Locations 433
Characteristics of Foreign Direct Investment 434
Ethics, Social Responsibility, Sustainability, and FDI 435
Motives for FDI and Collaborative Ventures 436
Market-Seeking Motives 436
Resource- or Asset-Seeking Motives 437
Efficiency-Seeking Motives 437
Types of Foreign Direct Investment 439
Greenfield Investment Versus Mergers and Acquisitions 439
The Nature of Ownership in FDI 440
Vertical Versus Horizontal Integration 441
International Collaborative Ventures 441
j You Can Do It | Recent Grad in IB: Jennifer Knippen 442
Equity Joint Ventures 442
Project-Based, Nonequity Ventures 443
Differences Between Equity and Project-Based, Nonequity Ventures 443
Consortium 443
Cross-Licensing Agreements 444
Potential Risks in Collaboration 444
Managing Collaborative Ventures 445
The Experience of Retailers in Foreign Markets 447
How Retailers Succeed in International Markets 448
j Closing Case: China’s “Going Out” Strategy 449
Endnotes 455
15 Licensing, Franchising, and Other Contractual

Strategies 458
• How LEGO Built Global Value in the Toy Industry, Block
by Block 458
Contractual Entry Strategies 460
Unique Aspects of Contractual Relationships 461
18 CONTENTS
Licensing as an Entry Strategy 462

Trademark and Copyright Licensing 463
Know-How Licensing 464
The World’s Top Licensing Firms 464
Advantages and Disadvantages of Licensing 465
Advantages of Licensing 466
Disadvantages of Licensing 466
Franchising as an Entry Strategy 467
Who Are the Top Global Franchisors? 468
Advantages and Disadvantages of Franchising 469
The Franchisor Perspective 470
The Franchisee Perspective 470
Managerial Guidelines for Licensing and Franchising 471
Other Contractual Entry Strategies 471
Turnkey Contracting 471
Build-Operate-Transfer Arrangements (BOT) 472
Management Contracts 472
Leasing 473
The Special Case of Internationalization by Professional Service Firms 473
j You Can Do It | Recent Grad in IB: Juanita Velez 474
Infringement of Intellectual Property: A Global Problem 474
Guidelines for Protecting Intellectual Property 475
j Closing Case: Subway and the Challenges of Franchising in China 477
Endnotes 483
Part 5 Functional Area Excellence 486

16 Marketing in the Global Firm 486
• Michael Kors: The Global Affordable Luxury Market 486
Global Market Segmentation 488
Standardization and Adaptation of International Marketing 490
Standardization 490
Adaptation 492
Standardization and Adaptation: A Balancing Act 493
j You Can Do It | Recent Grad in IB: John Dykhouse 494
Global Branding and Product Development 495
Global Branding 495
Global Product Development 496
International Pricing 497
Factors That Affect International Pricing 497
Framework for Setting International Prices 499
Managing International Price Escalation 500
Managing Pricing Under Varying Currency Conditions 501
Transfer Pricing 501
Gray Market Activity (Parallel Imports) 502
CONTENTS 19
International Marketing Communications 503

International Advertising 504
International Promotional Activities 506
International Distribution 506
Global Account Management 507
j Closing Case: H&M: International Marketing Success Story 507
Endnotes 513
17 Human Resource Management in the Global Firm 516

• Etisalat Egypt: Attracting and Maintaining the Best Employees 516
The Strategic Role of Human Resources in International Business 518
Differences Between Domestic and International HRM 519
KEY TASKS IN INTERNATIONAL HUMAN RESOURCE MANAGEMENT 520
International Staffing Policy 521
Recruiting, Selecting, and Developing Talent 521
Cultivating Global Mind-Sets 522
Cultural Intelligence 523
Expatriate Assignment Failure and Culture Shock 523
Preparation and Training of International Employees 523
Preparing Employees for Repatriation 524
Charting Global Careers for Employees 525
Performance Appraisal and Compensation of International
Employees 526
Compensation 526
International Labor Relations 528
Distinctive Features of Labor Around the World 529
Cost, Quality, and Productivity of Labor 530
Workforce Reduction and Employee Termination 530
International Labor Trends 531
Firm Strategy in International Labor Relations 531
Diversity in the International Workforce 532
Women in International Business 532
Success Strategies for Women Managers in International Business 535
j Closing Case: Sony’s Human Resource Strategies 536
Endnotes 541
Glossary 544
Author Index 550
Company Index 557
Subject Index 560
Preface
New to This Edition
Our aim is to keep the text fully up-to-date and at a reasonable length. Thus, we have dropped
some items and added new ones. From Chapter 4, we dropped the Closing Case on Bribery and
Corruption at Siemens. From Chapter 5, we dropped the Closing Case on Hyundai and the Global
Auto Industry. From Chapter 6, we dropped the Opening Case on Risks in Russia’s Political and
Legal Systems.
To replace the above dropped items and maintain currency, we have created new or greatly
revised opening and closing cases in the fifth edition of Cavusgil, Knight, and Riesenberger
(CKR 5e) as follows:
Chapter 2: A new Opening Case on Skype: A “Born Global” Business

Chapter 4: A new Closing Case on the recent Scandal at Volkswagen
Chapter 5: A new Closing Case on Unilever’s Comparative and Competitive Advantages
Chapter 6: A new Opening Case on Galileo: Regional Disintegration and Its Consequences
Chapter 7: A new Opening Case on Tripartism: Singapore’s Key Competitive Advantage
Chapter 13: A new Closing Case on Inditex and Zara: A Tale of Comparative Advantages
Chapter 15: A heavily revised Closing Case on Subway and the Challenges of Franchising
in China
Chapter 16: A heavily revised Opening Case on Michael Kors: The Global Affordable
Luxury Market
In addition, for our feature You Can Do It: Recent Grad in IB, we have added new biogra-
phies of young graduates with careers in international business. In Chapter 1, we added Mary
Lyles, who works in global sourcing for Starbucks; and in Chapter 15, we added Juanita Velez,
who works in international social media at Delta Air Lines.
In various chapters, we also added several new exhibits and significant new material on such
contemporary topics as preparing for international travel, the rise of digital technologies, the
trade and GDP growth relationship, the meaning of colors worldwide, workplace harassment,
Brexit and the UK, populism, national governance, blockchain and cryptocurrencies, carbon
taxes, cross-national project management, the Global Connectedness Index, global sourcing for
smartphones, reshoring and nearshoring, the best global companies to work for, and women in
international business, among numerous others.
Solving Teaching and Learning Challenges

Today’s students—often called Generation Z, Post Millennials, or the iGen—have grown up in a
constantly connected world. To address the unique wants, needs and learning style of Generation
Z students, we have designed CKR 5e to emphasize the following features:
• Visual learning. CKR 5e emphasizes interactive media and videos as well as exhibits,
maps, and other visual learning aids. The MyLab Management provides access to a wide
variety of additional visual resources.
• Relevant knowledge and job-related skills. CKR 5e includes more relevant examples and
activities, concise foundational course content, Intangible Soft Skills, and Tangible Process
Skills that prepare Generation Z students for the work world.
• Contemporary issues that matter to Generation Z. CKR 5e emphasizes the new interna-
tional business environment, in-depth coverage of contemporary international business
topics such as emerging markets, developing economies, growth of the service sector, risks
20
PREFACE 21
in international business, digital technologies, women in international business, and other

important trends.
• Meaningful content. CKR 5e provides substantial content on ethics, corporate social
responsibility, and sustainability in international business.
• Digital platform. Generation Z learners prefer content that they can read or access digitally
at a time and place of their choosing. Digital learning enhances engagement, self-pacing,
and the ability to customize content to individual needs. Digital platforms help ensure
timely, up-to-date content and the ability to collaborate with peers. In these and other
ways, CKR 5e provides such digital options. To improve Generation Z students results, we
recommend pairing the text content with MyLab Management, which is the teaching and
learning platform that empowers you to reach every student. By combining trusted author
content with digital tools and a flexible platform, MyLab personalizes the learning experi-
ence and will help your students learn and retain key course concepts while developing
skills that future employers are seeking in their candidates. MyLab Management helps you
teach your course, your way. Learn more at www.pearson.com/mylab/management.
Some of the main features of the textbook and MyLab are as follows:
HIGHLY ACCESSIBLE WRITING AND EXPLANATIONS THAT ENGAGE STUDENTS. Opening and closing
cases appeal to students, featuring firms and subjects such as Apple, IKEA, Vodafone, H&M,
born global firms, social media in China, and the global movie industry. The content stimulates
student desire to learn more about international business.
Constantly fluctuating exchange rates require international MORE EXERCISES AND ACTIVITIES THAT ENABLE STUDENTS
managers to keep in mind three facts: TO ACQUIRE CRITICAL THINKING AND PROBLEM-SOLVING
The prices the firm charges can be quoted in the firm’s currency or in the currency of SKILLS. CKR 5e contains 174 exhibits (about three
each foreign customer. times more than leading competitors). Students like ex-
Because several months can pass between placement and delivery of an order,
fluctuations in the exchange rate during that time can cost or earn the firm money. hibits because they help clarify complex material and
The firm and its customers can use the exchange rate as it stands on the date of each facilitate reading the chapters.
transaction, or they can agree to use a specific exchange rate.
TANGIBLE PROCESS TOOLS. They are designed to simulate

real-world decision making that will help increase effec-
tiveness in the workplace.
GROUP PROJECT ON INTERNATIONAL CORPORATE SOCIAL
RESPONSIBILITY. CKR 5e contains a comprehensive ac-
tivity in which students debate corporate social respon-
sibility (CSR) in international business. In this extended
exercise, located in the Instructor’s Manual, students de-
bate the merits and consequences of CSR as executives,
You Can Do It RECENT GRAD IN IB
consumers, or activists.
TERRANCE ROGERS
YOU CAN DO IT—RECENT GRAD IN IB BIOGRAPHIES. CKR
Terrance’s Majors: Finance and international business
Objectives: Exploration, international perspective, self-awareness, career growth,
and learning about foreign markets
5e offers eleven biographies of actual university gradu-
Internships during college: Deutsche Bank
Jobs held since graduating:
ates who have embarked on fascinating careers in inter-
Business analyst at Deutsche Bank, New York
Management associate at Deutsche Bank, New York national business. These biographies include comments
Executive management rotation at Deutsche Bank, New York
Executive management associate at Deutsche Bank, London and New York concerning the specific intangible soft skills that have
helped them be successful in work.
22 PREFACE
LEARNING CATALYTICS™. With this tool, you'll hear from every

student when it matters most. You pose a variety of questions
that help students recall ideas, apply concepts, and develop
critical-thinking skills. Your students respond using their own
smartphones, tablets, or laptops.
CHAPTER WARM-UP. These questions help you hold your students accountable for
learning key concepts in each chapter before coming to class.
VIDEOS EXERCISES. Engaging Videos explore a vari-

ety of business topics related to the theory students
are learning in class.
Exercise Quizzes assess students’ comprehen-
sion of the concepts in each video.
PREFACE 23
Developing Employability Skills

The Association to Advance Collegiate Schools of Business (AACSB) International increasingly
advocates a more skills-oriented, practical approach in business books, which this text provides,
rather than a theory-based approach.
For students to succeed in a rapidly changing job market, they should be aware of their ca-
reer options and how to develop various critical skills. In this book and MyLab Management, we
focus on developing these skills.
The CKR 5e Career Preparation Kit™ incorporates CKR Tangible Process Tools™ as well
as CKR Intangible Soft Skills™, which constitute guidelines of the Association to Advance Col-
legiate Schools of Business (AACSB). CKR Intangible Soft Skills focus on the skills employers
have identified as needed for employability and success in the marketplace today. The CKR Tan-
gible Process Tools will help students increase their effectiveness in the workplace.
The Employability Skills Table below provides students with a guide to features that
support the development of skills employers are looking for in today’s business graduates,
helping students to see from the start of class the relevance of the course to their career goals.
This table identifies which features and end-of-chapter materials will help students to develop
these skills.
Employability Skills Table

Skills Sections in the text and MyLab covering these skills
Written and oral Global Edge Internet Test Your EOC Writing
communication Exercises - End of chapter Comprehension - Assignment - MyLab
box element Chapter End exercises Management
Critical thinking Chapter Opening and Apply Your
and problem solving Chapter Closing Cases Understanding - short,
essay-style questions at
the end of the chapter
Teamwork and Chapter Opening and Apply Your
collaboration Chapter Closing Cases Understanding - short,
essay-style questions at
the end of the chapter
Leadership Chapter 11, “Strategy and
Organization in the
International Firm”
Creativity Apply Your Understanding Chapter Opening and
Chapter Closing Cases
Ethics Chapter 4, “Ethics, Chapter 4 Watch It Vid-
Corporate Social Respon- eo Exercises - MyLab
sibility, Sustainability, and Management
Governance in International
Business”
Information Global Edge Internet
technology skills Exercises - End of chapter
box element
OPENING CASE. Each chapter begins with a brief case study that illustrates chapter topics and asks
key questions about real-world companies and situations covered in the case.
24 PREFACE
CLOSING CASE Internationalization at Vodafone
CLOSING CASE. Every chapter closes with an extensive case Vodafone, a British company headquartered in Newbury, Berk-
shire, England, is the world’s second largest mobile communi-
fragmented with scores of small operators jockeying for limited
geographical territories. In June 1999, the British company was
study that addresses the learning objectives highlighted cations operator, with networks in 64 countries in five continents,
serving 458 million customers. Its annual revenues in 2018 were
successful in acquiring a 45 percent stake in AirTouch Cellular, a
Californian corporation using the AMPS technology standard. A
$53.3 billion and its earnings before interest, taxes, depreciation, year later, it was renamed to Verizon Wireless.
in the chapter. The cases help students build managerial and amortization were $16.8 billion.
About 66 percent of Vodafone’s revenues come from con-
With new confidence after this strategic move, Vodafone made
an offer to buy a controlling interest in Mannesmann, Germany’s
skills by applying chapter material to a situation faced by sumer services and 29 percent from business customers. In
2018, 4G was up 63 percent to 122 million customers worldwide.
second largest mobile operator, which was already in partnership
negotiations with two heavyweights of the industry, Hong Kong’s
Smartphone usage in 2018 saw customers, on average, using 2.5 Hutchinson Whampoa and France’s Vivendi. Mannesmann’s CEO
real-world managers. Questions accompany the case for GB per month (up 51 percent year on year). The company has sev-
eral “growth engines” that identify their key priorities and sources
and Board replied they were not interested to sell. Vodafone
swiftly made a hostile takeover bid directly to the German com-
assignment as homework. Class discussion helps students of revenue:
Mobile data: The year 2018 saw an overall growth of 63 per-
pany’s shareholders. In spite of resistance from the German
government and the general public, in February 2000, Vodafone
sharpen their analytical and decision-making skills. cent with 4G customers reaching 122 million. Smartphone use
was up 51 percent compared to 2017Fixed Services (e.g. broad-
succeeded in striking a friendly merger, paying $180.95 billion for
the control of 50.5 percent of the new company. This transaction,
band) as a percentage of the overall revenue has increased from the largest cross-border merger ever, did not involve any cash:
22 percent in 2015 to 25 percent in 2018 Mannesmann’s shareholders received Vodafone shares in lieu of
Enterprise (business services): This is a growing part of the payment.
business, representing some 29 percent of the group’s revenue. The company’s global expansion followed rapidly, and the
There was a 0.9 percent growth in 2018 compared to 2017. stock-swap payment method has been enshrined in Vodafone’s
TEST YOUR COMPREHENSION. A list of 6 to 12 short questions assesses student learning of chapter learning
objectives and other chapter concepts.
APPLY YOUR UNDERSTANDING. An additional collection of three short, essay-style questions aims to have
students apply chapter material to real-world international business practice.
INTERNET EXERCISES
Access globalEDGETM at www.globalEDGE.msu.edu
AACSB and CKR Intangible Soft Skills to improve employability and success in the
workplace: Information Technology, Application of Knowledge, Diverse and Multicul-
tural Work Environments, Written and Oral Communication, Analytical Thinking and
Reflective Thinking
GLOBALEDGE INTERNET EXERCISES. GlobalEDGE™ (https://
Knowledge Portal their relative positions make sense to you? Does each coun-
globalEDGE™ is a leading knowledge portal for professionals in try seem like a good place to do business? Why or why globaledge.msu.edu) was developed by CKR author
not? Hint: Evaluate countries on a per-capita basis by divid-
international business. It is a gateway to specialized knowledge
on countries, international business transactions, culture, and ing each criterion by the country’s population. S. Tamer Cavusgil and is the leading knowledge portal
1-21. In this chapter, we reviewed the four major risks that firms
firm practice. globalEDGE™ was developed at Michigan State
University under the direction of Professor S. Tamer Cavusgil. face in international business: cross-cultural risk, coun- for professionals in international business. It provides a
try risk, currency risk, and commercial risk. Identify one
Consult the globalEDGE™ portal to complete the Internet exer-
cises at the end of each chapter. or more countries that interest you, and then visit glo- gateway to specialized knowledge on countries, cross-
balEDGE™ and research the countries to uncover examples
1-20. You can gain valuable insights into international busi-
ness by examining how countries compare to each other.
of each of the four types of risks. For example, China is border ventures, culture, and company practice. Each
characterized by various cultural differences and a national
Various research groups and international agencies system-
atically examine economic, political, and other features of
government that tends to intervene in business. Research chapter provides several globalEDGE exercises as the
by entering the country name in the search engine. Visit
nations. Visit globalEDGE™ Tools and Data, scroll down,
and click Interactive Rankings. Select Countries. You will
Global Insights and Market Potential Index. Illustrate each
risk with examples.
basis for student assignments and projects.
find dozens of criteria ranking countries based on GDP 1-22. You have recently been hired by a smaller firm that is be-
per capita; Education—literacy rate; People—population ginning to expand internationally. When first starting out,
total; People—population density; Health—mortality rate; most firms choose exporting as their main foreign market
Energy—electricity production; Infrastructure—mobile cel- entry strategy. However, no one in your firm knows how
lular subscriptions; Infrastructure—roads, total network; to conduct exporting. Therefore, your boss has given you
Trade and Investment—foreign direct investment net in- an assignment: Prepare a presentation for your coworkers
flows; and many other factors. Choose the ranking crite- on how to engage in exporting. Using globalEDGE™, find
ria that interest you most, and then examine the following and review Guide to Exporting, which you can use to create
three countries: Germany, India, and South Africa. Based your presentation.
on your analysis, explain why they rank where they do. Do
CKR TANGIBLE PROCESS TOOLS™. These practical exercises CKR Tangible Process Tools™
familiarize students with key managerial challenges and What is a CKR Tangible Process Tool Exercise?
CKR Tangible Process Tools consist of practical exercises and work processes designed to
decision making that professionals typically encounter familiarize you with key managerial challenges and decisions that professionals typically
in international business. By completing CKR Tangible encounter in international business. Completing CKR Tangible Process Tool exercises in
Process Tools™ exercises, students can acquire real- this text enables you to acquire practical, real-world work processes that will impr ove em-
ployability and success in the workplace. Each exercise presents a managerial challenge in
world skills that will help them perform better in their a real-world scenario, the skills you will acquire in solving the exercise, and a methodology
careers. and the resources to use in solving it. The second half of the exercise is provided at the
Pearson MyLab Management website (www.pearson.com/mylab/management).
AACSB TAGGING. This book and MyLab Management support AACSB international accredita-
tion. In every chapter, after each section of questions, specific AACSB tagging is provided to
help instructors identify which AACSB Intangible Soft Skills that activity supports. AACSB
tagging is also part of all questions in the Test Item File that accompanies the book.
PREFACE 25
Instructor Teaching Resources

At the Instructor Resource Center, www.pearsonglobaleditions.com, instructors can easily
register to gain access to a variety of instructor resources available with this text in downloadable
format. If assistance is needed, our dedicated technical support team is ready to help with the
media supplements that accompany this text. Visit https://support.pearson.com/getsupport for
answers to frequently asked questions and toll-free user support phone numbers.
Supplements available to instructors

at www.pearsonglobaleditions.com Features of the Supplement
Instructor’s Resource Manual • Chapter-by-chapter summaries
authored by Marta Szabo White, S. Tamer • Examples and activities not in the main book
Cavusgil, Gary Knight, and • Teaching outlines
John Riesenberger • Teaching tips, including openers to help launch
lectures
• Solutions to all questions and problems in the book
Test Bank 1,600 multiple-choice, true/false, short-answer, and

authored by John Capela essay questions with the following annotations:
• Difficulty level (1 for straight recall, 2 for some
analysis, 3 for complex analysis)
• Type (multiple-choice, true/false, short-answer,
essay)
• Learning objective
• AACSB learning standard (Written and Oral
Communication, Ethical Understanding and
Reasoning, Analytical Thinking, Information
Technology, Interpersonal Relations and Teamwork,
Diverse and Multicultural Work Environments,
Reflective Thinking, and/or Application
of Knowledge)
TestGen® Computerized Test Bank TestGen allows instructors to:

• Customize, save, and generate classroom tests
• Edit, add, or delete questions from the Test Item
Files
• Analyze test results
• Organize a database of tests and student results
PowerPoints Presentations • Cover all concepts, explanations, and major

authored by S. Tamer Cavusgil, Gary Knight, examples in each chapter
and John Riesenberger • Include all exhibits in the textbook
• Meet accessibility standards for students with
disabilities. Features include, but not limited to:
❏❏ Keyboard and Screen Reader access
❏❏ Alternative text for images
❏❏ High color contrast between background and
foreground colors
Image Library • A collection of photos and other images for use

in enhancing PowerPoints and other teaching
materials related to CKR 5e
Acknowledgments
Our Reviewers
Through numerous versions of the manuscript, we have received guidance and insights from
many trusted reviewers who provided recommendations on how to improve and refine the con-
tent, presentation, and organization. Their contributions have proven invaluable. We extend our
gratitude to:
Anil Agarwal, University of Arizona Bradley Farnsworth, University of Michigan,
Raj Aggarwal, University of Akron Ann Arbor
Anshu Arora, Savannah State University Aysun Ficici, Southern New Hampshire
Richard Ajayi, University of Central Florida University
Hamid Ali, Chicago State University John Finley, Columbus State University
Allen Amason, University of Georgia Ian Gladding, Lewis University
Gary Anders, Arizona State University Jorge Gonzalez, University of Texas–Pan
Robert Armstrong, University of North American
Alabama Tom Head, Roosevelt University
Mathias Arrfelt, Arizona State University Bruce Heiman, San Francisco State
Bulent Aybar, Southern New Hampshire University
University David Hrovat, Northern Kentucky University
Nizamettin Aydin, Suffolk University Douglas Johansen, Jacksonville University
Peter Banfe, Ohio Northern University Paul Jones, Regis University
Eric Baumgardner, Xavier University Ali Kara, Pennsylvania State University–
Mack Bean, Franklin Pierce University University Park
Lawrence Beer, Arizona State University Bruce Keillor, Youngstown University
Enoch Beraho, South Carolina State Daekwan Kim, Florida State University
University Ki Hee Kim, William Patterson University
David Berg, University of Wisconsin– Konghee Kim, St. Cloud State University
Milwaukee Ahmet Kirca, Michigan State University
Jean Boddewyn, Baruch College, City Leonard Kloft, Wright State University
University of New York Peter Knight, Santa Clara University
Henry Bohleke, Owens Community College Anthony Koh, University of Toledo
Santanu Borah, University of Northern Stephanie Kontrim-Baumann, Missouri
Alabama Baptist University
Darrell Brown, Indiana University, Purdue Tatiana Kostova, University of South Carolina
University, Indianapolis Chuck Kwok, University of South Carolina
Linda Brown, Scottsdale Community College Ann Langlois, Palm Beach Atlantic University
Diana Bullen, Mesa Community College Romas Laskauskas, Stevenson University
Nancy Bush, Wingate University Yikuan Lee, San Francisco State University
Kirt Butler, Michigan State University Bijou Lester, Drexel University
Michael Campo, Regis University Phil Lewis, Eastern Michigan University
Tom Cary, City University, Seattle Charles Main, Northern Arizona University
Erin Cavusgil, University of Michigan–Flint Minghua Li, Franklin Pierce University
Kalyan Chakravarty, California State Peter Liesch, University of Queensland
University, Northridge Bob McNeal, Alabama State University–
Aruna Chandra, Indiana State University Montgomery
Kent Cofoid, Seminole State College Bulent Menguc, Kadir Has University
Tim Curran, University of South Florida Janis Miller, Clemson University
Madeline Calabrese Damkar, California State Barbara Moebius, Waukesha County Techni-
University–East Bay cal College
Donna Davisson, Cleveland State University Bruce Money, Brigham Young University
Seyda Deligonul, St. John Fisher College Bill Murray, University of San Francisco
Peter Dowling, Latrobe University, Australia Paul Myer, University of Maine
Juan España, National University Matthew B. Myers, University of Tennessee
26
ACKNOWLEDGMENTS 27
Max Grunbaum Nagiel, Daytona State Deanna Teel, Houston Community College
College Gladys Torres-Baumgarten, Ramapo College
Kuei-Hsien Niu, Sacramento State University of New Jersey
Bernard O’Rourke, Caldwell College Kimberly Townsend, Syracuse University
Braimoh Oseghale, Fairleigh Dickinson Thuhang Tran, Middle Tennessee State
University University
Jeffrey W. Overby, Belmont University Joseph Trendowski, Old Dominion University
Susan Peterson, Scottsdale Community Sameer Vaidya, Texas Wesleyan University
College Chandu Valluki, St. Mary’s University of
Iordanis Petsas, University of Scranton Minnesota
Zahir Quraeshi, Western Michigan University Cheryl Van Deusen, University of North
Roberto Ragozzino, University of Central Florida
Florida Linn Van Dyne, Michigan State University
Brandon Randolph-Seng, Texas Tech Davina Vora, State University
University of New York–New Paltz
Michelle Reina, Wisconsin Lutheran College William Walker, University of Houston
Elizabeth Rose, University of Otago Paula Weber, St. Cloud State University
Michael Rubach, University of Central Mindy West, Arizona State University
Arkansas Sidney Wheeler, Embry-Riddle Aeronautical
Carol Sanchez, Grand Valley State University University
Hakan Saraoglu, Bryant University Marta Szabo White, Georgia State University
Jeff Sarbaum, University of North Carolina at Richard Wilson, Hofstra University
Greensboro Yim-Yu Wong, San Francisco State University
Amit Sen, Xavier University Jennifer Woolley, Santa Clara University
Deepak Sethi, Old Dominion University Alan Wright, Troy University
Karen Sneary, Northwestern Oklahoma State Alex Xu, University of Michigan–Flint
University Attila Yaprak, Wayne State University
Kurt Stanberry, University of Houston– Betty Yobaccio, Bryant University
Downtown Pierre Yourougou, Whitman School of Man-
John Stanbury, George Mason University agement, Syracuse University
William Streeter, Olin Business School, Bashar Zakaria, California State University–
Washington University in Saint Louis Sacramento
Philip Sussan, University of Central Florida Anatoly Zhuplev, Loyola Marymount
Charles Ray Taylor, Villanova University University
Focus Group Participants

We have been fortunate that so many colleagues have given their time generously to offer
perspectives on our teaching resources. We have met with these colleagues in person, via
teleconference, and through other means to receive their input. The insights and recommenda-
tions of these educators have been instrumental in the design and format of our teaching system.
We extend our gratitude and thanks to the following reviewers and colleagues.
David Ahlstrom, The Chinese University of Paula Bobrowski, Auburn University
Hong Kong Teresa Brosnan, City University, Bellevue
Yusaf Akbar, Southern New Hampshire Darrell Brown, Indiana University, Purdue
University University–Indianapolis
Victor Alicea, Normandale Community Nichole Castater, Clark Atlanta University
College Aruna Chandra, Indiana State University
Gail Arch, Curry College Mike C. H. (Chen-Ho) Chao, Baruch College,
Anke Arnaud, University of Central Florida City University of New York
Choton Basu, University David Chaplin, Waldorf College
of Wisconsin–Whitewater Dong Chen, Loyola Marymount University
Eric Baumgardner, Xavier University Chen Oi Chin, Lawrence Technological
Mark Bean, Franklin Pierce College University
Enoch Beraho, South Carolina State Patrick Chinon, Syracuse University
University Farok J. Contractor, Rutgers University
28 ACKNOWLEDGMENTS
Angelica Cortes, University of Texas–Pan Lauryn Migenes, University of Central

American Florida
Michael Deis, Clayton State University Mortada Mohamed, Austin Community
Les Dlabay, Lake Forest College College
Gary Donnelly, Casper College Robert T. Moran, Thunderbird
Gideon Falk, Purdue University–Calumet Carolyn Mueller, Stetson University
Marc Fetscherin, Rollins College Kelly J. Murphrey, Texas A&M University
Charles Fishel, San Jose State University Lilach Nachum, Baruch College, CUNY
Frank Flauto, Austin Community College William Newburry, Florida International
Georgine K. Fogel, Salem International University
University Stanley Nollen, Georgetown University
Frank Franzak, Virginia Commonwealth Augustine Nwabuzor, Florida A&M
Debbie Gilliard, Metropolitan State College Bernard O’Rourke, Caldwell College
Robert Goddard, Appalachian State David Paul, California State University–
University East Bay
Andy Grein, Baruch College, City Christine Cope Pence, University of Califor-
University of New York nia Riverside
Andrew C. Gross, Cleveland State Heather Pendarvis-McCord, Bradley
David Grossman, Goucher College Kathleen Rehbein, Marquette University
Seid Hassan, Murray State University Liesl Riddle, George Washington University
Wei He, Indiana State University John Rushing, Barry University
Xiaohong He, Quinnipiac University Mary Saladino, Montclair State University
Christina Heiss, University Carol Sanchez, Grand Valley State
of Missouri–Kansas City University
Pol Herrmann, Iowa State University Camille Schuster, California State
Guy Holburn, University of Western Ontario University–San Marcos
Anisul Islam, University Eugene Seeley, Utah Valley State College
of Houston–Downtown Deepak Sethi, Old Dominion University
Basil Janavaras, Minnesota State University Mandep Singh, Western Illinois University
Raj Javalgi, Cleveland State University Rajendra Sinhaa, Des Moines Area
Ruihua Jiang, Oakland University Community College
Yikuan Jiang, California State John E. Spillan, Pennsylvania
University–East Bay State University–DuBois
James Kennelly, Skidmore College Uday S. Tate, Marshall University
Ken Kim, University of Toledo Janell Townsend, Oakland University
Leonard Kloft, Wright State University Sameer Vaidya, Texas Wesleyan University
Anthony C. Koh, The University of Toledo Robert Ware, Savannah State University
Ann Langlois, Palm Beach Atlantic Marta Szabo White, Georgia State
Michael La Rocco, University of Saint Steve Williamson, University
Francis of North Florida
Romas A. Laskauskas, Villa Julie College Lynn Wilson, Saint Leo University
Shaomin Li, Old Dominion University Attila Yaprak, Wayne State University
Ted London, University of Michigan Rama Yelkur, University
Peter Magnusson, University of Alabama of Wisconsin–Eau Claire
Charles Mambula, Suffolk University Minyuan Zhao, University of Michigan
David McArthur, Utah Valley State College Christopher Ziemnowicz, Concord
Ofer Meilich, Bradley University University
Our Colleagues, Doctoral Students, and Practitioners

Numerous individuals have contributed to our thinking over the years. Through conversations,
conferences, seminars, and writings, we have greatly benefited from the views and experience
of international business educators and professionals from around the world. We also have had
ACKNOWLEDGMENTS 29
many rich conversations with the doctoral students whom we have mentored over the years. Their
names appear below if they have not been previously mentioned. Directly or indirectly, their
thoughtful ideas and suggestions have had a significant impact on our book over the years. Our
appreciation goes to many individuals, including:
John Abbott, The Upjohn Company Raj Javalgi, Cleveland State University
Billur Akdeniz, University of New Hampshire Destan Kandemir, Bilkent University
Catherine N. Axinn, Ohio University Ilke Kardes, Georgia State University
Nizam Aydin, Suffolk University George Kaufman, The Upjohn Company
Christopher Bartlett, Harvard Business School Ihsen Ketata, Georgia State University
Vicky Bamiatzi, Leeds University Irem Kiyak, Michigan State University
Simon Bell, University of Melbourne Tunga Kiyak, Michigan State University
Daniel C. Bello, Georgia State University Yener Kandogan, University
Muzaffer Bodur, Bogazici University of Michigan–Flint
Jacobus Boers, Georgia State University Tuba Koc, Georgia State University
Nakiye Boyacigiller, Sabanci University Phillip Kotler, Northwestern University
John Brawley, The Upjohn Company David Kuhlmeier, Valdosta State University
David Bruce, Georgia State University John Lavaca, Pearson Prentice Hall
Kostas Bozos, Leeds University Tiger Li, Florida International University
Peter Buckley, Leeds University Karen Loch, Georgia State University
Susan Caolo, Georgia State University Mushtaq Luqmani, Western Michigan
Jorge Carneiro, PUC–Rio, Brazil University
Pedro Carrillo, Georgia State University Robert McCarthy, The Upjohn Company
Erin Cavusgil, University of Michigan–Flint Myron Miller, Michigan State
Brian Chabowski, University of Tulsa University (ret.)
Emin Civi, University of New Brunswick, Vincent Mongello, The Upjohn Company
St. John, Canada Robert T. Moran, Thunderbird Graduate
Mourad Dakhli, Georgia State University School of Management
Tevfik Dalgic, University of Texas at Dallas G.M. Naidu, University of Wisconsin–
Guillermo D’Andrea, Universidad Whitewater (ret.)
Austral–Argentina John R. Nevin, University of Wisconsin
Angela da Rocha, PUC–Rio Brazil Sushil Nifadkar, Georgia State University
Seyda Deligonul, St. John Fisher College Gregory Osland, Butler University
Fernando Doria, Georgia State University Erkan Ozkaya, California Polytechnic
Rick Della Guardia, The Upjohn Company University-Pomona
Deniz Erden, Bogazici University Aysegul Ozsomer, Koc University
Felicitas Evangelista, University of Western Ayse Ozturk, Georgia State University
Sydney, Australia Morys Perry, University of Michigan–Flint
Cuneyt Evirgen, Sabanci University Penny Prime, Georgia State University
J. Betty Feng, Farmingdale State College Hussain Rammal, University of South
(SUNY) Australia
Carol Finnegan, University of Colorado at Vivas Reyes, Georgia State University
Colorado Springs Alex Rialp, Universidad Autonoma
Harold Fishkin, The Upjohn Company de Barcelona, Spain
Michael Fishkin, Stony Brook University Tony Roath, University of Bath
Richard Fletcher, University of Western Carol Sanchez, Grand Valley State University
Sydney, Australia Hakan Saraoglu, Bryant University
Susan Freeman, University of South Australia Michael Savitt, The Upjohn Company
Esra Gencturk, Ozyegin University Peter Seaver, The Upjohn Company
Pervez Ghauri, Kings College London Oktay Sekercisoy, Binghamton University
Tracy Gonzalez-Padron, University Linda Hui Shi, University of Victoria
of Colorado at Colorado Springs Rudolf R. Sinkovics, The University
David Grossman, Goucher College of Manchester
Qian Gu, Georgia State University Carl Arthur Solberg, Norwegian School of
Bill Hahn, Science Branding Communications Management, Norway
Tomas Hult, Michigan State University Elif Sonmez-Persinger, Eastern Michigan
Bryan Jean, National Cheng-Chi University University
30 ACKNOWLEDGMENTS
Douglas Squires, The Upjohn Company of Joachim Wolf, University of Kiel

Canada Peter Wright, University of Melbourne
Barbara Stoettinger, Wirtschaftuniversität, Fang Wu, University of Texas–Dallas
Wien, Austria Shichun (Alex) Xu, University
Detmar Straub, Georgia State University of Michigan–Flint
Berk Talay, University of Massachusetts– Goksel Yalcinkaya, University
Lowell of New Hampshire
Cherian Thachenkary, Georgia State Attila Yaprak, Wayne State University
University Ugur Yavas, East Tennessee State University
David Tse, University of Hong Kong Sengun Yeniyurt, Rutgers University
Mithat Uner, Gazi University Poh-Lin Yeoh, Bentley College
Nukhet Vardar, Yeditepe University Eden Yin, University of Cambridge
Marta Szabo White, Georgia State Chun Zhang, University of Vermont
University Shaoming Zou, University of Missouri
Contributors
Mamoun Benmamoun, St. Louis University
Susan Leshnower, Midland College
Marta Szabo White, Georgia State Universtiy
Our Pearson Team

This book would not have been possible without the tireless efforts of many dedicated profes-
sionals at our publisher, Pearson. We are especially grateful to Sugandh Juneja, Senior Content
Producer; Neeraj Bhalla, Sponsoring Editor; and Stephanie Wall, Editor-in-Chief. Our apprecia-
tion goes to many other individuals at Pearson, including Ashley Santora, Melissa Feimer, and
Kris Ellis-Levy.
Global Edition Acknowledgments

Pearson would like to thank the following people for their work on the Global Edition:
Contributors
Ian Austin, Edith Cowan University
John Bancroft, Oxford Brookes University
Jan Charbonneau, University of Tasmania
Jacques Couvas, Bilkent University
Kym Fraser, University of South Australia
Bernard Gan, Griffith University
Janti Gunawan, Institut Teknologi Sepuluh Nopember
Stefania Paladini, Birmingham City University
Neil Pyper, Coventry University
Hamed Shamma, The American University in Cairo
Krish Saha, Birmingham City University
Chin Tee Suan, Multimedia University
Reviewers
David Ahlstrom, Chinese University of Hong Kong
Nikhil Celly, University of Houston
Goh See Kwong, Taylor’s University
About the Authors
S. Tamer Cavusgil
Georgia State University, Fuller E. Callaway Professorial Chair
Executive Director, Center for International Business Education
and Research (CIBER), J. Mack Robinson College of Business
Professor Tamer Cavusgil has been mentoring students, executives, and educators in international
business for the past four decades. A native of Turkey, his professional work has taken him to
numerous other emerging markets.
Tamer serves as Fuller E. Callaway Professorial Chair at Georgia State University’s Robinson
College of Business. He is also a visiting professor at Leeds University Business School, U.K.
and at the University of South Australia. He is also a Trustee of Sabanci University in Istanbul.
Previously, Tamer served as Senior Fulbright Scholar to Australia and taught at Monash Univer-
sity. Tamer also served as a visiting professor at Manchester Business School and held the Gianni
and Joan Montezemolo Visiting Chair at the University of Cambridge, United Kingdom, where
he is also an Honorary Fellow of Sidney Sussex College. At Michigan State University, where he
served for 21 years, he was the inaugural holder of the John Byington Chair in Global Marketing
and founding director of CIBER.
Tamer is an elected fellow of the Academy of International Business (AIB), a distinction earned
by a select group of intellectual leaders in international business. He also served as vice president
of the AIB and on the Board of Directors of the American Marketing Association.
Tamer has authored several dozen books and some 200 refereed journal articles. His work is
among the most cited contributions in international business. Various reviews have listed him
as one of the most influential and prolific authors in international management. Google Scholar
indicates more than 36,000 citations as of 2018 (h-index of 82) and lists him among the top five
scholars in the world in international business, international marketing, emerging markets, and
export marketing.
Tamer was awarded an honorary doctorate, Doctor Honoris Causa, by The University of Hasselt, Bel-
gium, in May 2014 and an honorary doctorate from the University of Southern Denmark in October
2017. In 2018, Tamer was named an honorary professor by Atilim University in Ankara, Turkey.
Tamer was named International Trade Educator of the Year in 1996 by the National Association
of Small Business International Trade Educators (NASBITE).
Tamer holds a bachelor of science degree in business and economics from the Middle East Tech-
nical University in Ankara, Turkey. He earned his MBA and PhD degrees in business from the
University of Wisconsin.
Gary Knight
Willamette University, Professor of Global Management and Helen
Simpson Jackson Chair in International Management
Professor Gary Knight has been teaching international business for 25 years. A native of the
United States, he has lived and worked in many countries around the world.
Gary has been Helen Simpson Jackson Chair in International Management at Willamette Univer-
sity since 2012. He was a professor at Florida State University for 15 years, where he directed the
school’s International Business Program. He also has been a visiting professor at the University
of Southern Denmark and Nihon University in Japan.
31
Gary has been an invited speaker at institutions worldwide and developed study abroad programs
in Asia, Europe, and Latin America. He has won several awards, including the Jerry Hudson
Award for Excellence in Teaching, Willamette University, and Best Teacher in the MBA Pro-
gram, Florida State University.
Gary has coauthored six books and more than 100 refereed articles in academic journals and
conference proceedings. His research emphasizes international business strategy, international
services, emerging markets, and internationalization of small and medium-sized firms.
Gary won the Hans Thorelli Best Paper Award for his article “Entrepreneurship and Strategy: The
SME Under Globalization.” Along with S. Tamer Cavusgil, he won the 2014 Decade Award at the
Journal of International Business Studies for their article on born global firms.
Gary is ranked in the top 5 percent of scholars who have published in the Journal of International
Business Studies since 1995, based on number of articles published. He is ranked among the top
five scholars in the United States and top 15 worldwide in international business research impact
based on Google Scholar citation data. He is on the editorial review boards of several interna-
tional journals. He has provided expert testimony on global commerce and small business to the
U.S. House of Representatives.
Gary is chair of the Academy of International Business, Western United States Chapter. Prior to
joining academia, he was export manager of a medium-sized enterprise, directing the firm’s oper-
ations in Canada, Europe, Japan, and Mexico and supervising some 50 distributors. He enjoyed
a brief career in banking and as a teacher in Japan.
Gary earned his MBA at the University of Washington and PhD at Michigan State University,
both in international business. Earlier degrees were in finance and modern languages. He also
attended the University of Paris in France and Sophia University in Japan and is fluent in French
and Japanese.
John R. Riesenberger
President, Consilium Partners
Thunderbird School of Global Management, Clinical Professor of Ex-
ecutive Development, Corporate Learning Group (retired)
Professor Riesenberger’s teaching activities centered on leadership and global project manage-
ment at the Thunderbird School of Global Management, Corporate Learning Group. His passion
is to help students and young professionals develop the managerial skills frequently required of
new graduates entering careers in international business.
John is an accomplished author, consultant, and international executive with senior executive
positions in major pharmaceutical firms, biotechnology firms, and pharmaceutical agencies.
John’s international business career spans more than three decades in the global pharmaceutical
industry. He has conducted business transactions in 22 countries.
Currently, he also serves as the president of Consilium Partners, Inc., a pharmaceutical consulting
firm with clients in pharmaceutical, biotechnology, and pharmaceutical agency firms.
He worked for 30 years with Pharmacia & Upjohn and The Upjohn Company as a senior
international executive. His experience covered a diverse range of divisional, geographic, and
functional accountabilities. His most recent position was as vice president of Global Business
Management. He also served as corporate vice president and chief commercialization officer for
a biotechnology firm and as the executive vice president of a pharmaceutical science agency.
John serves as a member of the board of directors of the Ontario Institute for Cancer Research.
He was a member of the Global Advisory Board of the American Marketing Association. He
served as an executive in residence at the Michigan State University Center for International
Business Education and Research. He served on the editorial review board of the Journal of
International Marketing. He served as chairman of the Industry Advisory Board’s Value of Mar-
keting Program, SEI Center for the Advanced Studies in Management at the Wharton School of
32
the University of Pennsylvania. He is the former chairman of the Pharmaceutical Manufacturing
Association Marketing Practices Committee. Professor Riesenberger is the coauthor, with Robert
T. Moran, of The Global Challenge: Building the New Worldwide Enterprise (McGraw-Hill,
London).
John holds a bachelor of science degree in economics–business and an MBA in management
from Hofstra University. He attended the Harvard Business School’s International Senior Man-
agement Program.
33
Part 1 | Foundation Concepts
Chapter Introduction: What Is
1
International Business?
Learning Objectives After studying this chapter, you
should be able to:
1.1 Describe the key concepts 1.5 Appreciate why you

in international business. should study international
1.2 Understand how business.
international business 1.6 Learn the CKR Intangible
differs from domestic Soft Skills™ and the
business. CKR Tangible Process
1.3 Identify major participants Tools™ to improve your
in international business. employability and success
in the workplace.
1.4 Describe why firms
internationalize.
China Globalizes London’s Black Cabs
G
lobalization refers to international transactions, London EV Company, or LEVC (formerly London
cooperation, and competition among firms. Taxi Company), is the manufacturer of the iconic London
China has become one of the most active trad- Black Cabs. Coventry has been the home of the com-
ing nations in an increasingly globalized world. China’s pany for the last 70 years. Coventry is the birthplace
drive in transforming itself into an industrial economy of the British motor industry and has a long tradition
gave birth to a thriving automobile industry, and Geely of manufacturing iconic automobile brands like Jaguar,
Automobile Holdings Limited, founded in 1986, was one Rover, Triumph, and Armstrong Siddeley. The FX4 model
of the products of that revolution. A subsidiary of Li taxis rolled out in 1959 from the Coventry plant set the
Shufu’s Zhejiang Geely Group, Geely began with motor- quintessential mold for the black cabs.
cycle production and eventually, in 1997, it started manu- LEVC formed a partnership with Geely in 2006 and
facturing cars. Geely’s moto, “Happy Life, Geely Drive” finally acquired the taxi maker in 2012 for $14.96 mil-
encourages its customers, suppliers, and human re- lion after it went into administration. LEVC’s current an-
sources to participate in ensuring safe, environmentally nual production is approximately 2,000 taxis. Geely has
friendly automobiles. Relentless pursuit of better tech- been constantly investing to increase capacity and com-
nology, foreign brands, and overseas markets resulted in petitiveness since acquisition. In 2016, the company an-
Geely’s European acquisition of Volvo cars in 2010 and nounced a $400 million investment to build a new factory
London Taxi Company (LTC) in 2012. with a production capacity of approximately 36,000 cars
34
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DANCE ON STILTS AT THE GIRLS’ UNYAGO, NIUCHI
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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The New Realities, 5th Global Edition

Part 1 Foundation Concepts 34

Part 2 The Environment of International Business 92

Part 3 Strategy and Opportunity Assessment 332

Part 4 Entering and Working in International Markets 394

Part 5 Functional Area Excellence 486

Part 1 Foundation Concepts 34

2 Globalization of Markets and the Internationalization

Part 2 The Environment of International Business 92

Managerial Implications of Culture 114

4 Ethics, Corporate Social Responsibility, Sustainability,

5 Theories of International Trade and Investment 152

Classical Theories 156

6 Political and Legal Systems in National Environments 182

Types of Country Risk Produced by Legal Systems 197

7 Government Intervention and Regional Economic

8 Understanding Emerging Markets 246

9 The International Monetary and Financial Environment 276

Market Psychology 283

10 Financial Management and Accounting in the Global Firm 302

Trends Toward Harmonization 319

Part 3 Strategy and Opportunity Assessment 332

12 Global Market Opportunity Assessment 366

Assessing Industry Market Potential 379

Part 4 Entering and Working in International

j Closing Case: Inditex and Zara: A Tale of Comparative Advantages 421

14 Foreign Direct Investment and Collaborative

15 Licensing, Franchising, and Other Contractual

Licensing as an Entry Strategy 462

Part 5 Functional Area Excellence 486

International Marketing Communications 503

17 Human Resource Management in the Global Firm 516

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