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International
Business
Competing in the Global Marketplace
14e

C h a r l e s W. L . H i l l
UNIVERSITY OF WASHINGTON
 Final PDF to printer

INTERNATIONAL BUSINESS
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For my daughters, Elizabeth,
Charlotte, and Michelle
— C h a r l e s W. L . H i l l
 about the AUTHOR
C h a r l e s W. L . H i l l
University of Washington

Charles W. L. Hill is a Professor of Management in the Foster School of Business at

the University of Washington. Professor Hill has taught in the MBA, Executive
MBA, Technology Management MBA, and PhD programs at the University of
Washington. His teaching responsibilities include strategic management, interna-
tional business, and microeconomics. During his time at the University of
Washington, he has received over 25 awards for teaching excellence, including the
Charles E. Summer all faculty Outstanding Teaching Award.
A native of the United Kingdom, Professor Hill received his PhD from the
University of Manchester, UK. In addition to the University of Washington, he has
served on the faculties of the University of Manchester, Texas A&M University, and
Michigan State University.
Professor Hill has published over 50 articles in top academic journals, including
the Academy of Management Journal, Academy of Management Review, Strategic
Management Journal, and Organization Science. Professor Hill has also published
several textbooks, including International Business (McGraw-Hill) and Global
Business Today (McGraw-Hill). His work is widely cited in international business
and strategic management. A recent study that measured scholarly influence based
on cumulative citations between 1996 and 2019 ranked Professor Hill in the top
1 percent of all scholars in the world across 22 major disciplines.
Professor Hill works on a private basis with a number of organizations. His
­clients have included Microsoft, where he taught in-house executive education
courses for two decades. He has also consulted for a variety of other large
­companies (e.g., AT&T Wireless, Boeing, BF Goodrich, Group Health, Hexcel,
Philips Healthcare, Philips Medical Systems, Seattle City Light, Swedish Health
Services, Tacoma City Light, Thompson Financial Services, WRQ, and Wizards of
the Coast). Additionally, Dr. Hill has served on the advisory board of several
­start-up companies.
For recreation, Professor Hill enjoys skiing and competitive sailing!

iv
 brief CONTENTS
part one Introduction and Overview
Chapter 1 Globalization 2

part two National Differences

Chapter 2 National Differences in Political, Economic, and
Legal Systems 40
Chapter 3 National Differences in Economic Development 64
Chapter 4 Differences in Culture 94
Chapter 5 Ethics, Corporate Social Responsibility, and
Sustainability 130

part three The Global Trade and Investment Environment

Chapter 6 International Trade Theory 160
Chapter 7 Government Policy and International Trade 198
Chapter 8 Foreign Direct Investment 230
Chapter 9 Regional Economic Integration 260

part four The Global Monetary System

Chapter 10 The Foreign Exchange Market 296
Chapter 11 The International Monetary System 324
Chapter 12 The Global Capital Market 354

part five The Strategy and Structure of International

Business
Chapter 13 The Strategy of International Business 376
Chapter 14 The Organization of International Business 408
Chapter 15 Entering Developed and Emerging Markets 444

part six International Business Functions

Chapter 16 Exporting, Importing, and Countertrade 476
Chapter 17 Global Production and Supply Chain
Management 502
Chapter 18 Global Marketing and Business Analytics 534
Chapter 19 Global Human Resource Management 572
Chapter 20 Accounting and Finance in International
Business 604

part seven Integrative Cases

How the iPhone Is Made: Apple’s Global Production System 632
Kenya: An African Lion 634
Poland: Eastern Europe’s Economic Miracle 636

v
 Culture and Business in Saudi Arabia 638
Microsoft Goes Carbon Neutral 640
A Tale of Two Nations: Ghana and South Korea 642
American Steel Tariffs 644
Starbucks’ Foreign Direct Investment 646
The Cost of Brexit 648
Managing Foreign Currency Exposure at 3M 650
Pakistan Takes Another IMF Loan 652
Saudi Aramco 654
Red Bull 656
Dow Chemical’s Global Matrix Structure 658
Walmart International 660
IKEA Entering India, Finally! 662
Higher Education Exporting and International
Competitiveness 664
Blockchain Technology and Global Supply Chains 666
Marketing Sneakers 668
Global Mobility at Shell 670

Glossary 672
Indexes 683

vi
 THE PROVEN CHOICE FOR
INTERNATIONAL BUSINESS
RELEVANT. PRACTICAL. INTEGRATED.
It is now more than a quarter of a century since work
began on the first edition of International Business:
Competing in the Global Marketplace. By the third edition
the book was the most widely used international business
text in the world. Since then its market share has only
increased. The success of the book can be attributed to a
number of unique features. Specifically, for the fourteenth
edition we have developed a learning program that
∙ Is comprehensive, state of the art, and timely.
∙ Is theoretically sound and practically relevant.
∙ Focuses on applications of international business
concepts.
∙ Maintains a tight integrated flow between
chapters.
∙ Focuses on the implications of international busi-
ness concepts for management practice.
∙ Makes important theories accessible and interest-
ing to students.
∙ Incorporates ancillary resources that turbo-charge
the text and make it easier to teach your course.
Over the years, and through now fourteen editions, I have
worked hard to adhere to these goals. It has not always
been easy. An enormous amount has happened over the
last 25 years, both in the real world of economics, poli-
tics, and business, and in the academic world of theory
and empirical research. Often I have had to significantly
rewrite chapters, scrap old examples, bring in new ones,
incorporate new theory and evidence into the book, and
phase out older theories that are less relevant to the mod-
ern and dynamic world of international business. That
process continues in the current edition. As noted later,
there have been significant changes in this edition, and
that will no doubt continue to be the case in the future. In
deciding what changes to make, I have been guided not
only by my own reading, teaching, and research, but also
by the invaluable feedback I receive from professors and
students around the world who use the book, from review-
ers, and from the editorial staff at McGraw Hill. My
thanks go out to all of them.
COMPREHENSIVE AND UP-TO-DATE
To be relevant and comprehensive, an international busi-
ness package must
∙ Explain how and why the world’s cultures,
­countries, and regions differ.
∙ Cover economics and politics of international
trade and investment.
∙ Tackle international issues related to ethics,
­corporate social responsibility, and sustainability.
∙ Explain the functions and form of the global mon-
etary system.
∙ Examine the strategies and structures of
­international businesses.
∙ Assess the special roles of the various functions of
an international business.
Relevance and comprehensiveness also require coverage
of the major theories. It has always been a goal to incor-
porate the insights gleaned from recent academic scholar-
ship into the book. Consistent with this goal, insights
from the following research, as a sample of theoretical
streams used in the book, have been incorporated:
∙ New trade theory and strategic trade policy.
∙ The work of Nobel Prize–winning economist
Amartya Sen on economic development.
∙ Samuel Huntington’s influential thesis on the
“clash of civilizations.”
∙ Growth theory of economic development champi-
oned by Paul Romer and Gene Grossman.
∙ Empirical work by Jeffrey Sachs and others on the
relationship between international trade and eco-
nomic growth.
∙ Michael Porter’s theory of the competitive advan-
tage of nations.
∙ Robert Reich’s work on national competitive
advantage.
∙ The work of Nobel Prize–winner Douglass North
and others on national institutional structures and
the protection of property rights.
vii
 ∙ The market imperfections approach to foreign
direct investment that has grown out of Ronald
Coase and Oliver Williamson’s work on transac-
tion cost economics.
∙ Bartlett and Ghoshal’s research on the transna-
tional corporation.
∙ The writings of C. K. Prahalad and Gary Hamel
on core competencies, global competition, and
global strategic alliances.
∙ Insights for international business strategy that can
be derived from the resource-based view of the
firm and complementary theories.
∙ Paul Samuelson’s critique of free trade theory.
∙ Recent empirical work of multiple academics,
including Paul Romer, Jeffrey Sachs, and David
Autor, on the economic consequences of freer
trade.
∙ Conceptual and empirical work on global supply
chain management—logistics, purchasing (sourc-
ing), operations, and marketing channels.
In addition to including leading-edge theory and empiri-
cal research, in light of the fast-changing nature of the
international business environment, I have made every
effort to ensure that this product is as up-to-date as possi-
ble. A significant amount has happened in the world
since the first edition of this book. For much of the last
70 years, the world has moved toward a rules-based multi-
national order that has governed cross-border trade and
investment. The goal has been to lower barriers to inter-
national trade and investment, allowing countries to ben-
efit from the gains to trade. The result has been greater
globalization and a fertile environment in which interna-
tional businesses could thrive. Perhaps the high point of
this movement was the establishment of the World Trade
Organization (WTO) in 1995 and the decade that fol-
lowed. Since 2016, however, the world has lurched away
from this consensus. Most notably, under the leadership
of President Donald Trump, America unilaterally raised
trade barriers and entered into a trade war with China.
President Biden seems to be charting a similar course to
President Trump on trade with China. The fact that the
two largest economies in the world, which together
account for around 40 percent of global economic activ-
ity, are engaged in a significant and ongoing trade dis-
pute, has created huge uncertainties for international
businesses. The competitive environment has fundamen-
tally changed. To compound matters, emergence in early
2020 of the SARS-CoV-2 virus that causes the COVID-19
disease has resulted in a global pandemic that has mas-
sively disrupted global supply chains and thrown the
global economy into a deep recession. In this edition, I
discuss the implications of these developments for the
viii
global economy and the practice of international busi-
ness. The world has changed, and the text of the book
reflects this reality.
What’s New in the 14th Edition
The success of the first thirteen editions of International
Business was based in part on the incorporation of
leading-­edge research into the text, the use of the
­up-to-date examples and statistics to illustrate global
trends and enterprise strategy, and the discussion of
­current events within the context of the appropriate
­theory. Building on these strengths, our goals for the
twelfth edition have focused on the following:
1. Incorporate new insights from scholarly research.
2. Make sure the content covers all appropriate issues.
3. Make sure the text is up-to-date with current
events, statistics, and examples.
4. Add new and insightful opening and closing cases
in most chapters.
5. Incorporate value-added globalEDGETM features
in every chapter.
6. Connect every chapter to a focus on managerial
implications.
7. Provide 20 new integrated cases that can be used
as additional cases for specific chapters but, more
importantly, as learning vehicles across multiple
chapters.
8. Add a new feature to the managerially focused
chapters of the book (Chapters 13–20) that looks
at how changes in the macro environment affect
international business practice.
As part of the overall revision process, changes have been
made to every chapter in the book. All statistics have
been updated to incorporate the most recently available
data. Important current events have been incorporated
into the text and discussed at length. Within the book you
will find comprehensive discussion of the ongoing trade
war between America and China, Brexit and the outlook
for Britain and the EU post-Brexit, the renegotiation of
NAFTA and the ratification of its successor, the USMCA,
and the economic and business implications of the
COVID-19 pandemic. In addition, the Focus on
Managerial Implications section that has always appeared
at the end of each chapter that deals with the macro envi-
ronment (Chapters 1–12) has been renamed, 360° View:
Managerial Implications. In the more managerially
focused chapters (Chapters 13–20) I have added a new
section, 360° View: Impact of the Macro Environment,
which explicitly discusses how ongoing changes in the
macro environment (such as the U.S.–China trade con-
flict and the COVID-19 pandemic) affect management
practice. I believe this is a very valuable addition to this
edition.
In addition to updating all statistics, figures, and maps
to incorporate most recently published data, and includ-
ing reference to important current events in appropriate
chapters (e.g., discussion of U.S.–China trade conflict,
Brexit, COVID-19), a chapter-by-chapter selection of
changes for the 14th edition also includes the following:
Chapter 1: Globalization
∙ New opening case: Trucklabs
∙ Updated statistics and figures to incorporate the
most recent data on global trade flows and foreign
direct investment
∙ Discussion of the implications of recent political
trends (Brexit, trade disputes, the rise of China)
and what this might mean for cross border trade
and investment
∙ New closing case: Detroit Bikes
Chapter 2: National Differences in Political,
Economic, and Legal Systems
∙ New opening case: Ireland’s Economic
Transformation
∙ Updated data on corruption
∙ New closing case: China’s Mixed Economy
Chapter 3: National Differences in
Economic Development
∙ New opening case: Economic Development in
South Africa
∙ Updated maps, figures, and in-text statistics to
reflect most recently available data
∙ Addition of demographic trends to the discussion
of Political Economy and Economic Progress
∙ Updated discussion of the spread of democracy to
reflect recent countertrends toward greater author-
itarianism in several nations (e.g., Turkey)
∙ New closing case: What Ails Argentina?
Chapter 4: Differences in Culture
∙ New opening case: Doing Business in Brazil
∙ Inclusion of a discussion of patience across
cultures
∙ Revised the foundation that most religions are now
pro-business
∙ Revised discussion of the impact of Islam on
national culture to note significant diversity in
cultural practices between nations where Islam is
the major religion
∙ New closing case: Russian Culture
Chapter 5: Ethics, Corporate Social
Responsibility, and Sustainability
∙ New opening case: Gucci’s Code of Ethics
∙ New closing case: Who Stitched Your Designer
Jeans?
Chapter 6: International Trade Theory
∙ New opening case: Global Trade in Semiconductors
∙ Updated Country Focus on China and currency
manipulation
∙ Added discussion of the impact of trade wars on
business practice in 360° View: Managerial
Implications
∙ New closing case: Trade in Services
∙ Updated balance of payments data in the
Appendix to reflect 2020 data
Chapter 7: Government Policy and
International Trade
∙ New opening case: The Jones Act
∙ Updated discussion of the world trading system to
reflect recent developments, including Brexit and
ongoing trade disputes between the United States,
China, and others.
∙ New closing case: America and Kenya Negotiate a
Trade Deal
Chapter 8: Foreign Direct Investment
∙ New opening case: Tesla’s Direct Investment in
China
∙ Updated statistics and figures on foreign direct
investment in the world economy to incorporate
the most recently available data
∙ New closing case: JCB in India
Chapter 9: Regional Economic Integration
∙ New opening case: Britain Post-Brexit
∙ Updated discussion of Brexit and its aftermath
∙ Added discussion of the renegotiation of NAFTA
by the Trump administration and the ratification
of NAFTA’s replacement, the United States–
Mexico–Canada Agreement (USMCA)
ix
 ∙ Additional discussion of new free trade deals in
Africa
∙ New closing case: RCEP: The World’s Largest
Trade Deal
Chapter 10: The Foreign Exchange
Market
∙ New opening case: Hedging the Thai Baht
∙ Updated data throughout the chapter to reflect
currency exchange rates in 2020
∙ New closing case: Exchange Rates and the
Profitability of Korean Airlines
Chapter 11: The International Monetary
System
∙ New opening case: The Future of the U.S. Dollar
as the World’s Reserve Currency
∙ Updated data and discussion of the floating
exchange rate regime through till 2020
∙ New closing case: Did the IMF Help Egypt?
Chapter 12: The Global Capital Market
∙ New opening case: Why do so many Israeli
Companies List on American Stock Exchanges?
∙ Updated statistics and discussion to reflect most
recently available data
∙ New closing case: Chinese IPOs in the United
States
Chapter 13: The Strategy of International
Business
∙ New opening case: Emirates Global Strategy
∙ New section: 360° View: Impact of the Macro
Environment
∙ New closing case: Geely Holdings: China’s First
Global Car Company
Chapter 14: The Organization of
International Business
∙ New opening case: Reorganizing Siemens to
Compete Globally
∙ New Management Focus: IBM Moves Towards a
Matrix Structure
∙ New section: 360° View: Impact of the Macro
Environment
x
∙ New closing case: Philips: 120 years of
Organization Change
Chapter 15: Entering Developed and
Emerging Markets
∙ New opening case: Uber’s Foreign Market Entry
Strategy
∙ New section: 360° View: Impact of the Macro
Environment
∙ New closing case: Vanguard in China
Chapter 16: Exporting, Importing, and
Countertrade
∙ New opening case: Exporting to Egypt
∙ New section: 360° View: Impact of the Macro
Environment
∙ New closing case: Maine Coast Company
Chapter 17: Global Production and Supply
Chain Management
∙ New opening case: The Global Chip Shortage in
the Auto Industry: Supply Chain Disruptions in
the Age of COVID-19
∙ New section: 360° View: Impact of the Macro
Environment
∙ New closing case: China: The World’s
Manufacturing Center in the Wake of Trade Wars
and COVID-19
Chapter 18: Global Marketing and Business
Analytics
∙ New opening case: Airbnb: Building a Global
Brand by Emphasizing Local Experience
∙ New section: 360° View: Impact of the Macro
Environment
∙ New closing case: Share a Coke
Chapter 19: Global Human Resource
Management
∙ New opening case: Developing a Global Workforce
at Colgate-Palmolive
∙ New section: 360° View: Impact of the Macro
Environment
∙ New closing case: The Evolution of HR Strategy at
IBM
Chapter 20: Accounting and Finance in the
International Business
∙ New opening case: Google Ends its “Double Irish-
Dutch Sandwich” Tax Minimization Scheme
∙ New section: 360° View: Impact of the Macro
Environment
∙ New closing case: Microsoft’s Acquisition of
Skype
Integrated Cases
All of the 20 integrated cases are new for International
Business 14e. Many of these cases build on previous
opening and closing chapter cases that have been
revised, updated, and oftentimes adopted a new angle or
focus. A unique feature of the opening and closing cases
for the chapters as well as the integrated cases at the
back-end of the text is that we cover all continents of the
world and we do so with regional or country issues and
large, medium, and small company scenarios. This
makes the 60 total cases that are included in
International Business 14e remarkably wealthy as a learn-
ing program.
∙ How the iPhone is Made: Apple’s Global
Production System
∙ Kenya: An African Lion
∙ Poland: Eastern Europe’s Economic Miracle
∙ Culture and Business in Saudi Arabia
∙ Microsoft Goes Carbon Neutral
∙ A Tale of Two Nations: Ghana and South Korea
∙ American Steel Tariffs
∙ Starbucks’ Foreign Direct Investment
∙ The Cost of Brexit
∙ Managing Foreign Currency Exposure at 3M
∙ Pakistan Takes Another IMF Loan
∙ Saudi Aramco
∙ Red Bull
∙ Dow Chemical’s Global Matrix Structure
∙ Walmart International
∙ IKEA Entering India, Finally!
∙ Higher Education Exporting and International
Competitiveness
∙ Blockchain Technology and Global Supply
Chains
∙ Marketing Sneakers
∙ Global Mobility at Shell
BEYOND UNCRITICAL PRESENTATION AND
SHALLOW EXPLANATION
Many issues in international business are complex and
thus necessitate considerations of pros and cons. To dem-
onstrate this to students, I have always adopted a critical
approach that presents the arguments for and against eco-
nomic theories, government policies, business strategies,
organizational structures, and so on.
Related to this, I have attempted to explain the com-
plexities of the many theories and phenomena unique to
international business so the student might fully compre-
hend the statements of a theory or the reasons a phenom-
enon is the way it is. These theories and phenomena are
explained in more depth in this work than they are in
competing texts. I have always believed that a shallow
explanation is little better than no explanation at all. In
international business, a little knowledge is indeed a dan-
gerous thing.
PRACTICAL AND RICH APPLICATIONS
It is important to show students how the material covered
in the text is relevant to the actual practice of interna-
tional business. This is explicit in the later chapters of the
book, which focus on the practice of international busi-
ness, but it is not always obvious in the first half of the
book, which considers macro topics. Accordingly, at the
end of each of the first 12 chapters—where the primary
focus is on the environment of international business, as
opposed to particular firms—there is a section titled 360°
View: Managerial Implications. In this section, the mana-
gerial implications of the material discussed in the chap-
ter are clearly explained. Additionally, most chapters have
at least one Management Focus box. The purpose of these
boxes is to illustrate the relevance of chapter material for
the practice of international business. Finally, as noted
already, in Chapters 13–20, where the focus in explicitly
on management issues, a new section has been added,
360° View: Impact of the Macro Environment, where we
discuss how changes in the macro environment can affect
the management of strategy and functional activities
within an international business.
A Did You Know? feature challenges students to view
the world around them through the lens of interna-
tional business (e.g., Did you know that a Kit Kat bar is
marketed very differently in different countries?). The
author recorded short videos explaining the
phenomena.
In addition, each chapter begins with an opening case
that sets the stage for the chapter and ends with a closing
case that illustrates the relevance of chapter material for
the practice of international business.
xi
 To help students go a step further in expanding their
application-level understanding of international business,
each chapter incorporates two globalEDGETM research
tasks. The exercises dovetail with the content just
covered.
INTEGRATED PROGRESSION OF TOPICS
A shortcoming of many texts is that they lack a tight, inte-
grated flow of topics from chapter to chapter. This book
explains to students in Chapter 1 how the book’s topics
are related to each other. Integration has been achieved
by organizing the material so that each chapter builds on
the material of the previous ones in a logical fashion.
Part One
Chapter 1 provides an overview of the key issues to be
addressed and explains the plan of the book. Globalization
of markets and globalization of production is the core
focus.
Part Two
Chapters 2 through 4 focus on country differences in
political economy and culture, and Chapter 5 on ethics,
corporate social responsibility, and sustainability issues
in international business. Most international business
textbooks place this material at a later point, but we
believe it is vital to discuss national differences first. After
all, many of the central issues in international trade and
investment, the global monetary system, international
business strategy and structure, and international busi-
ness functions arise out of national differences in politi-
cal economy and culture.
Part Three
Chapters 6 through 9 investigate the political economy of
global trade and investment. The purpose of this part is
to describe and explain the trade and investment environ-
ment in which international business occurs.
Part Four
Chapters 10 through 12 describe and explain the global
monetary system, laying out in detail the monetary frame-
work in which international business transactions are
conducted.
Part Five
In Chapters 13, 14 and 15 attention shifts from the envi-
ronment to the firm. In other words, we move from a
macro focus to a micro focus at this stage of the book. We
xii
examine strategies that firms adopt to compete effectively
in the international business environment.
Part Six
In Chapters 16 through 20, the focus narrows further to
investigate business functions and related operations.
These chapters explain how firms can perform their key
functions—exporting, importing, and countertrade; global
production; global supply chain management; global mar-
keting; global research and development (R&D); human
resource management—to compete and succeed in the
international business environment.
Throughout the book, the relationship of new material
to topics discussed in earlier chapters is pointed out to
the students to reinforce their understanding of how the
material comprises an integrated whole. We deliberately
bring a management focus to the macro chapters
(Chapters 1 through 12). We also integrate macro themes
in covering the micro chapters (Chapters 13 through 20).
ACCESSIBLE AND INTERESTING
The international business arena is fascinating and excit-
ing, and we have tried to communicate our enthusiasm
for it to the student. Learning is easier and better if the
subject matter is communicated in an interesting, infor-
mative, and accessible manner. One technique we have
used to achieve this is weaving interesting anecdotes into
the narrative of the text, that is, stories that illustrate
theory.
Most chapters also have a Country Focus box that pro-
vides background on the political, economic, social, or
cultural aspects of countries grappling with an interna-
tional business issue.
ACKNOWLEDGMENTS
Numerous people deserve to be thanked for their assis-
tance in preparing this book. First, thank you to all the
people at McGraw-Hill Education who have worked with
us on this project:
Michael Ablassmeir, Director
Michele Janicek, Product Development Manager
Kelly Pekelder, Lead Product Developer
Haley Burmeister, Product Developer
Allison Marker, Product Developer
Debbie Clare, Executive Marketing Manager
Julia Blankenship, Marketing Coordinator
Harvey Yep, Content Project Manager (Core)
Katie Reuter, Content Project Manager (Assessment)
Rachel Hirschfield, Buyer
Matt Diamond, Designer
Traci Vaske, Content Licensing Specialist
Second, our thanks go to the reviewers who provided
good feedback that helped shape this book:
John David Branch, University of Michigan
Lisa Cherivtch, Oakton Community College
Kelli Crickey, University of North Georgia
Karen A. Gengle, Grand Canyon University
Erica Piros Kovacs, Indiana University
Gena Messer Knode, NC Wesleyan College
Yimai Lewis, North Central College
Gloria J. Miller, Austin Peay State University
Lilac Nachum, Baruch College, CUNY
Moronke Oke, Grand Canyon University
Jonathan Opata, Northern Virginia Community College
Ayse Begum Otken, University of North Carolina
Wilmington
Rajendra Sinha, Des Moines Area Community College
William H. Toel, Bradley University
Walter C. Van Hooff, San Jose State University
John A. Wade III, Eastern Kentucky University
Demi Williams, Northern Virginia Community College
Nan Zhang, CSU Stanislaus
A special thanks to David Closs and David Frayer for
allowing us to borrow elements of the sections on
Strategic Roles for Production Facilities; Make-or-Buy
Decisions; Global Supply Chain Functions; Coordination
in Global Supply Chains; and Interorganizational
Relationships for Chapter 15 of this text from Tomas
Hult, David Closs, and David Frayer (2014), Global
Supply Chain Management, New York: McGraw-Hill.
xiii
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 CONTENTS
part one Closing Case
Detroit Bikes 36
Introduction and Overview Endnotes 37

C HA PTE R 1
Globalization 2
Opening Case part two
TruckLabs 3 National Differences
Introduction 4
What Is Globalization? 6 CHAPTER 2
The Globalization of Markets 6 National Differences in Political, Economic, and
The Globalization of Production 7 Legal Systems 40
Management Focus Opening Case
Boeing’s Global Production System 8 Ireland’s Economic Transformation 41
The Emergence of Global Institutions 9 Introduction 42
Drivers of Globalization 11 Political Systems 42
Declining Trade and Investment Barriers 11 Collectivism and Individualism 43
Role of Technological Change 14 Democracy and Totalitarianism 45
The Changing Demographics of the Global Economy 16 Country Focus
The Changing World Output and World Trade Picture 16 Putin’s Russia 46
Country Focus Economic Systems 48
India’s Software Sector 17 Market Economy 48
The Changing Foreign Direct Investment Picture 18 Command Economy 49
The Changing Nature of the Multinational Enterprise 19 Mixed Economy 50
Management Focus Legal Systems 51
The Dalian Wanda Group 20 Different Legal Systems 51
The Changing World Order 21 Differences in Contract Law 52
Global Economy of the Twenty-First Century 22 Property Rights and Corruption 53
The Globalization Debate 23 Country Focus
Antiglobalization Protests 23 Corruption in Brazil 55
Country Focus Management Focus
Donald Trump’s America First Policies 24 Did Walmart Violate the Foreign Corrupt Practices Act? 56
Globalization, Jobs, and Income 25 The Protection of Intellectual Property 57
Globalization, Labor Policies, and the Environment 27 Product Safety and Product Liability 58
Globalization and National Sovereignty 29
360° View: Managerial Implications 59
Globalization and the World’s Poor 29
The Macro Environment Influences Market
Managing in the Global Marketplace 31 Attractiveness 59
Key Terms 33 Key Terms 59
Summary 34 Summary 60
Critical Thinking and Discussion Questions 35 Critical Thinking and Discussion Questions 60
Research Task 35 Research Task 61

xvi
Closing Case Key Terms 89
China’s Mixed Economy 61 Summary 89
Critical Thinking and Discussion Questions 89
Endnotes 62
Research Task 90
Closing Case
CH APTER 3 What Ails Argentina? 90
National Differences in Economic Endnotes 92
Development 64
Opening Case CHAPTER 4
Economic Development in South Africa 65 Differences in Culture 94
Introduction 66 Opening Case
Differences in Economic Development 66 Doing Business in Brazil 95
Map 3.1 GDP per capita, 2020. 67 Introduction 96
Map 3.2 GDP PPP per Capita, 2020. 68
What Is Culture? 96
Map 3.3 Average annual growth rate in GDP (%), Values and Norms 97
2010–2019. 69 Culture, Society, and The Nation-State 98
Broader Conceptions of Development: Amartya Sen 70 Determinants of Culture 99
Map 3.4 Human Development Index, 2020. 71
Social Structure 100
Political Economy and Economic Progress 71 Individuals and Groups 100
Innovation and Entrepreneurship are the Engines of Social Stratification 102
Growth 71
Innovation and Entrepreneurship Require a Market Country Focus
Economy 72 Determining Your Social Class by Birth 103
Innovation and Entrepreneurship Require Strong Property Religious and Ethical Systems 105
Rights 72 Map 4.1 World religions. 106
The Required Political System 73 Christianity 106
Country Focus Islam 107
Property Rights in China 74 Country Focus
Economic Progress Begets Democracy 74 Turkey: Its Religion and Politics 110
Geography, Education, Demographics, and Economic Hinduism 111
Development 75 Buddhism 112
States in Transition 76 Confucianism 113
The Spread of Democracy 76 Management Focus
Map 3.5 Freedom in the world, 2021. 77 China and Its Guanxi 114
The New World Order and Global Terrorism 78
The Spread of Market-Based Systems 80 Language 115
Spoken Language 115
Map 3.6 Index of economic freedom, 2021. 81
Unspoken Language 116
The Nature of Economic Transformation 81
Education 116
Deregulation 81
Privatization 82 Culture and Business 117
Country Focus Cultural Change 120
India’s Economic Transformation 83
360° View: Managerial Implications 122
Legal Systems 84
Cultural Literacy and Competitive Advantage 122
Implications of Changing Political Economy 84
Key Terms 124
360° View: Managerial Implications 85 Summary 124
Benefits, Costs, Risks, and Overall Attractiveness of Doing Critical Thinking and Discussion Questions 125
Business Internationally 85 Research Task 1 2 5

xvii
Closing Case
Russian Culture 126
part three
Endnotes 127
The Global Trade and Investment
Environment
C HA PTE R 5
CHAPTER 6
Ethics, Corporate Social Responsibility,
and Sustainability 130 International Trade Theory 160
Opening Case
Opening Case
Global Trade in Semiconductors 161
Gucci’s Code of Ethics 131
Introduction 162
Introduction 132
An Overview of Trade Theory 163
Ethics and International Business 132
The Gains From Trade 163
Employment Practices 133
The Pattern of International Trade 164
Human Rights 133
Trade Theory and Government Policy 165
Management Focus
Mercantilism 166
“Emissionsgate” at Volkswagen 134
Environmental Pollution 136 Country Focus
Corruption 137 Is China Manipulating Its Currency in Pursuit of a
Neo-Mercantilist Policy? 167
Ethical Dilemmas 138
Absolute Advantage 167
Roots of Unethical Behavior 139
Personal Ethics 139 Comparative Advantage 169
Decision-Making Processes 140 The Gains From Trade 170
Organizational Culture 141 Qualifications and Assumptions 172
Unrealistic Performance Goals 141 Extensions of the Ricardian Model 172
Leadership 141
Country Focus
Societal Culture 142
“Trade Wars Are Good and Easy to Win” 177
Philosophical Approaches to Ethics 142
Heckscher–Ohlin Theory 178
Straw Men 142
The Leontief Paradox 179
Utilitarian and Kantian Ethics 144
Rights Theories 145 The Product Life-Cycle Theory 180
Justice Theories 146 Product Life-Cycle Theory in the Twenty-First Century 181
360° View: Managerial Implications 147 New Trade Theory 181
Making Ethical Decisions Internationally 147 Increasing Product Variety and Reducing Costs 182
Economies of Scale, First-Mover Advantages, and the Pattern
Management Focus
of Trade 182
Corporate Social Responsibility at
Implications of New Trade Theory 183
Stora Enso 153
National Competitive Advantage: Porter’s
Key Terms 154
Diamond 184
Summary 154
Factor Endowments 185
Critical Thinking and Discussion
Demand Conditions 186
Questions 155
Related and Supporting Industries 186
Research Task 156
Firm Strategy, Structure, and Rivalry 186
Closing Case Evaluating Porter’s Theory 187
Who Stitched Your Designer
360° View: Managerial Implications 187
Jeans? 156
Location, First-Mover Advantages, Government Policy,
Endnotes 157 Investments, and Strategy 187

xviii
Key Terms 190 Key Terms 223
Summary 190 Summary 224
Critical Thinking and Discussion Questions 191 Critical Thinking and Discussion Questions 225
Research Task 192 Research Task 225
Closing Case Closing Case
Trade in Services 192 America and Kenya Negotiate a Trade Deal 225
Endnotes 196 Endnotes 227

CH APTER 7 CHAPTER 8
Government Policy and International Trade 198 Foreign Direct Investment 230
Opening Case Opening Case
The Jones Act 199 Tesla’s Investment in China 231
Introduction 200 Introduction 232
Instruments of Trade Policy 200 Foreign Direct Investment in the World Economy 232
Import Tariffs 200 Trends in FDI 232
Export Tariffs and Bans 201 The Direction of FDI 233
The Source of FDI 234
Management Focus
Huawei Export Ban Hits U.S. Firms 202 Country Focus
Subsidies 203 Foreign Direct Investment in China 235
Import Quotas and Voluntary Export Restraints 203 The Form of FDI: Acquisitions versus Greenfield
Investments 236
Country Focus
Were the Chinese Illegally Subsidizing Auto Exports? 204 Theories of Foreign Direct Investment 237
Local Content Requirements 205 Why Foreign Direct Investment? 237
Administrative Policies 205
Management Focus
Antidumping Policies 206
Burberry Shifts Its Entry Strategy in Japan 238
The Case for Government Intervention 206 The Pattern of Foreign Direct Investment 240
Political Arguments for Intervention 206 The Eclectic Paradigm 241
Economic Arguments for Intervention 210
Political Ideology and Foreign Direct Investment 242
The Revised Case for Free Trade 211 The Radical View 242
Retaliation and Trade War 211 The Free Market View 243
Domestic Policies 212 Pragmatic Nationalism 243
Shifting Ideology 244
Development of the World Trading System 212
From Smith to the Great Depression 213 Benefits and Costs of FDI 245
1947–1979: Gatt, Trade Liberalization, and Economic Host-Country Benefits 245
Growth 213 Host-Country Costs 247
1980–1993: Protectionist Trends 213 Home-Country Benefits 248
The Uruguay Round and the World Trade Organization 214 Home-Country Costs 249
WTO: Experience to Date 215 International Trade Theory and FDI 249
WTO: Unresolved Issues and the Doha Round 216
Government Policy Instruments and FDI 250
Country Focus Home-Country Policies 250
Estimating the Gains from Trade for the United States 219 Host-Country Policies 251
Multilateral and Bilateral Trade Agreements 220 International Institutions and the Liberalization of
The World Trading System Under Threat 220 FDI 252
360° View: Managerial Implications 221 360° View: Managerial Implications 252
Trade Barriers, Firm Strategy, and Policy Implications 221 FDI and Government Policy 252

xix
Key Terms 254 360° View: Managerial Implications 288
Summary 254 Regional Economic Integration Threats 288
Critical Thinking and Discussion Questions 255
Key Terms 289
Research Task 256
Summary 290
Closing Case Critical Thinking and Discussion Questions 290
JCB in India 256 Research Task 291
Endnotes 257 Closing Case
RCEP: The World’s Largest Trade Deal 291
C HA PTE R 9 Endnotes 293
Regional Economic Integration 260
Opening Case
Britain Post-Brexit—Searching for Trade Deals 261 part four
Introduction 262 The Global Monetary System
Levels of Economic Integration 263
The Case for Regional Integration 265 CHAPTER 10
The Economic Case for Integration 265 The Foreign Exchange Market 296
The Political Case for Integration 266 Opening Case
Impediments to Integration 266 Hedging the Thai Baht 297
The Case against Regional Integration 267 Introduction 298
Regional Economic Integration in Europe 268 The Functions of the Foreign Exchange Market 299
Evolution of the European Union 268 Currency Conversion 299
Political Structure of the European Union 268 Insuring against Foreign Exchange Risk 301
Map 9.1 Member states of the European Union in
2020. 269 Management Focus
Embraer and the Gyrations of the Brazilian Real 303
Management Focus
The European Commission and Google 270 The Nature of the Foreign Exchange Market 304
The Single European Act 271 Economic Theories of Exchange Rate Determination 305
The Establishment of the Euro 272 Prices and Exchange Rates 305
Country Focus Country Focus
The Greek Sovereign Debt Crisis 276 Quantitative Easing, Inflation, and the Value of the U.S.
Enlargement of the European Union 276 Dollar 309
British Exit from the European Union (BREXIT) 278 Interest Rates and Exchange Rates 310
Regional Economic Integration in the Americas 279 Investor Psychology and Bandwagon Effects 311
The North American Free Trade Agreement 279 Summary of Exchange Rate Theories 312
Map 9.2 Economic integration in the Exchange Rate Forecasting 312
Americas. 280 The Efficient Market School 312
The United States–Mexico–Canada Agreement The Inefficient Market School 313
(USMCA) 282 Approaches to Forecasting 313
The Andean Community 283
Mercosur 284 Currency Convertibility 314
Central American Common Market, CAFTA, and 360° View: Managerial Implications 315
CARICOM 284 Foreign Exchange Rate Risk 315
Regional Economic Integration Elsewhere 285 Reducing Translation and Transaction Exposure 316
Association of Southeast Asian Nations 285 Reducing Economic Exposure 316
Other Steps for Managing Foreign Exchange Risk 317
Map 9.3 ASEAN countries. 286
Regional Trade Blocs in Africa 286 Key Terms 318
Other Trade Agreements 287 Summary 318

xx
Critical Thinking and Discussion Questions 319 Key Terms 348
Research Task 320 Summary 349
Critical Thinking and Discussion
Closing Case
Questions 349
Exchange Rates and the Profitability of Korean
Research Task 350
Airlines 320
Closing Case
Endnotes 321
Did the IMF Help Egypt? 350
Endnotes 352
CH APTER 11
The International Monetary
System 324 CHAPTER 12
Opening Case
The Global Capital Market 354
The Future of the U.S. Dollar as the World’s Reserve Opening Case
Currency 325 Why Do So Many Israeli Companies List on
American Stock Exchanges? 355
Introduction 326
Introduction 356
The Gold Standard 327
Mechanics of the Gold Standard 328 Benefits of the Global Capital Market 356
Strength of the Gold Standard 328 The Functions of a Generic Capital Market 356
The Period between the Wars: 1918–1939 328 Attractions of the Global Capital Market 357
The Bretton Woods System 329 Management Focus
The Role of the IMF 329 The Industrial and Commercial Bank of China Taps the
The Role of the World Bank 330 Global Capital Market 359
Growth of the Global Capital Market 361
The Collapse of the Fixed Exchange Rate
Global Capital Market Risks 363
System 331
Country Focus
The Floating Exchange Rate Regime 332
Did the Global Capital Markets Fail Mexico? 364
The Jamaica Agreement 332
Exchange Rates since 1973 333 The Eurocurrency Market 365
Genesis and Growth of the Market 365
Fixed versus Floating Exchange Rates 335
Attractions of the Eurocurrency Market 365
The Case for Floating Exchange Rates 336
Drawbacks of the Eurocurrency Market 367
The Case for Fixed Exchange Rates 337
Who Is Right? 338 The Global Bond Market 367
Attractions of the Eurobond Market 368
Exchange Rate Regimes in Practice 338
Pegged Exchange Rates 338 The Global Equity Market 368
Country Focus Foreign Exchange Risk and the Cost of
China’s Exchange Rate Regime 339 Capital 370
Currency Boards 340
360° View: Focus on Managerial
Crisis Management by the IMF 341 Implications 370
Financial Crises in the Post–Bretton Woods Era 341 Growth of the Global Capital Market 370
Country Focus Key Terms 371
The IMF and Iceland’s Economic Recovery 342 Summary 371
Evaluating the IMF’s Policy Prescriptions 344 Critical Thinking and Discussion
Questions 372
360° View: Managerial Implications 346
Research Task 372
Currency Management, Business Strategy, and Government
Relations 346 Closing Case
Chinese IPOs in the United States 372
Management Focus
Airbus and the Euro 347 Endnotes 374

xxi
 part five CHAPTER 14
The Organization of International Business 408
The Strategy and Structure of
Opening Case
International Business Reorganizing Siemens to Compete Globally 409

C HA PTE R 1 3 Introduction 410

The Strategy of International Business 376 Organizational Architecture 410
Opening Case Organizational Structure 412
Emirates Global Strategy 377 Vertical Differentiation 412
Horizontal Differentiation 414
Introduction 378
Integrating Mechanisms 419
Strategy and the Firm 378
Management Focus
Value Creation 379
IBM Moves Toward a Matrix Structure 420
Strategic Positioning 380
Operations: The Firm as a Value Chain 381 Control Systems and Incentives 424
Types of Control Systems 425
Management Focus
Incentive Systems 426
AB InBev, Beer Globally, and Creating Value 382
Control Systems and Incentives 427
Global Expansion, Profitability, and Profit Growth 385
Processes 429
Expanding the Market 385
Location Economies 386 Organizational Culture 430
Experience Effects 388 Creating and Maintaining Organizational Culture 430
Leveraging Subsidiary Skills 390 Organizational Culture and Performance 431
Profitability and Profit Growth Summary 391
Management Focus
Cost Pressures and Pressures for Local Lincoln Electric and Culture 433
Responsiveness 391
Synthesis: Strategy and Architecture 434
Pressures for Cost Reductions 391
Localization Strategy 434
Pressures for Local Responsiveness 392
International Strategy 435
Management Focus Global Standardization Strategy 435
IKEA’s Global Strategy 393 Transnational Strategy 435
Environment, Strategy, Architecture, and Performance 436
Choosing a Strategy 396
Global Standardization Strategy 397 Organizational Change 436
Localization Strategy 398 Organizational Inertia 436
Implementing Organizational Change 437
Management Focus
Unilever’s Responsiveness to Its Dutch–British Key Terms 439
Roots 399 Summary 439
Transnational Strategy 399 Critical Thinking and Discussion Questions 440
International Strategy 400 Research Task 440
The Evolution of Strategy 401
Closing Case
360° View: Impact of the Macro Environment 401 Philips: 120 Years of Organization Change 440
Cross-Border Trade, Investment, and Strategy 401
Endnotes 442
Exogenous Shocks and Strategy 403
Key Terms 403
Summary 403 CHAPTER 15
Critical Thinking and Discussion Questions 404 Entering Developed and
Research Task 404 Emerging Markets 444
Closing Case Opening Case
Geely Holdings: China’s First Global Car Company 405 Uber’s Foreign Market Entry Strategy 445
Endnotes 406 Introduction 446
xxii
Basic Entry Decisions 447 The Promise and Pitfalls of Exporting 478
Which Foreign Markets? 447
Management Focus
Management Focus Embraer and Brazilian Importing 480
Tesco’s International Growth Strategy 448
Improving Export Performance 481
Timing of Entry 448
International Comparisons 481
Scale of Entry and Strategic Commitments 450
Information Sources 481
Market Entry Summary 451
Management Focus
Entry Modes 452
Exporting Desserts by a Hispanic Entrepreneur 483
Exporting 452
Service Providers 483
Turnkey Projects 453
Export Strategy 484
Licensing 453
Franchising 455 Management Focus
Joint Ventures 456 Two Men and a Truck 485
Wholly Owned Subsidiaries 457 The Globaledge™ Exporting Tool 486
Selecting an Entry Mode 458 Export and Import Financing 486
Core Competencies and Entry Mode 458 Lack of Trust 487
Pressures for Cost Reductions and Entry Mode 460 Letter of Credit 489
Draft 490
Greenfield Venture or Acquisition? 460
Bill of Lading 490
Pros and Cons of Acquisitions 460
A Typical International Trade Transaction 491
Pros and Cons of Greenfield Ventures 462
Which Choice? 463 Export Assistance 492
The Export-Import Bank 492
Strategic Alliances 463
Export Credit Insurance 493
Advantages of Strategic Alliances 463
Countertrade 493
Management Focus
The Popularity of Countertrade 494
Gazprom and Global Strategic Alliances 464
Types of Countertrade 494
Disadvantages of Strategic Alliances 465
Pros and Cons of Countertrade 496
Making Alliances Work 465
360° View: Impact of the Macro
360° View: Impact of the Macro
Environment 496
Environment 467
Political Economy and Entry Choices 468 Key Terms 497
Summary 497
Key Terms 469
Critical Thinking and Discussion Questions 498
Summary 469
Research Task 498
Critical Thinking and Discussion Questions 470
Research Task 471 Closing Case
Maine Coast Company 499
Closing Case
Vanguard in China 471 Endnotes 500
Endnotes 473
CHAPTER 17
part six Global Production and Supply Chain
Management 502
International Business Functions
Opening Case
The Global Chip Shortage in the Auto Industry:
CH APTER 16 Supply Chain Disruptions in the Age of
Exporting, Importing, and Countertrade 476 COVID-19 503
Opening Case Introduction 504
Exporting to Egypt 477
Strategy, Production, and Supply Chain
Introduction 478 Management 505
xxiii
Where to Produce 508 Distribution Strategy 547
Country Factors 508 Differences between Countries 548
Choosing a Distribution Strategy 550
Management Focus
IKEA Production in China 509 Communication Strategy 551
Technological Factors 509 Barriers to International Communication 551
Production Factors 512
Management Focus
The Hidden Costs of Foreign Locations 515
Burberry’s Social Media Marketing 552
Management Focus Push versus Pull Strategies 553
Amazon’s Global Supply Chains 516 Global Advertising 555
Make-or-Buy Decisions 517 Pricing Strategy 556
Price Discrimination 556
Global Supply Chain Functions 520
Strategic Pricing 557
Global Logistics 520
Regulatory Influences on Prices 559
Global Purchasing 522
Configuring the Marketing Mix 559
Managing a Global Supply Chain 523
Role of Just-in-Time Inventory 523 Product Development and R&D 560
Role of Information Technology 524 The Location of R&D 561
Coordination in Global Supply Chains 525 Integrating R&D, Marketing, and Production 562
Interorganizational Relationships 526 Cross-Functional Teams 563
Building Global R&D Capabilities 564
360° View: Impact of the Macro Environment 527
360° View: Impact of the Macro Environment 565
Key Terms 528
Summary 528 Key Terms 566
Critical Thinking and Discussion Questions 529 Summary 566
Research Task 530 Critical Thinking and Discussion Questions 567
Research Task 5 6 8
Closing Case
China: The World’s Manufacturing Hub in the Wake of Closing Case
Trade Wars and COVID-19 530 Share a Coke 568
Endnotes 532 Endnotes 570

CHAPTER 19
C HA PTE R 1 8
Global Marketing and Business Analytics 534 Global Human Resource Management 572
Opening Case
Opening Case
Developing a Diverse Global Workforce at
AirBnB: Building a Global Brand by Emphasizing Local
Colgate-PALMOLIVE 573
Experience 535
Introduction 574
Introduction 536
Strategic Role of Global HRM: Managing a Global
Globalization of Markets and Brands 538
Workforce 575
Market Segmentation 539
Staffing Policy 576
Management Focus Types of Staffing Policies 576
Global Branding, Marvel Studios, and the Walt Disney Expatriate Managers 579
Company 540
Management Focus
Business Analytics 541 AstraZeneca and a Global Staffing Policy 582
International Marketing Research 543 Global Mindset 583
Product Attributes 546 Training and Management Development 585
Cultural Differences 546 Training for Expatriate Managers 585
Economic Development 547 Cultural Training 585
Product and Technical Standards 547 Language Training 586

xxiv
 Practical Training 586 Financial Management: The Investment Decision 613
Repatriation of Expatriates 586 Capital Budgeting 614
Project and Parent Cash Flows 614
Management Focus
Monsanto’s Repatriation Program 587 Management Focus
Management Development and Strategy 587 Black Sea Oil and Gas Ltd. 615
Adjusting for Political and Economic Risk 615
Performance Appraisal 588
Risk and Capital Budgeting 616
Performance Appraisal Problems 588
Guidelines for Performance Appraisal 589 Financial Management: The Financing Decision 617
Compensation 589 Financial Management: Global Money
National Differences in Compensation 589 Management 617
Minimizing Cash Balances 618
Management Focus
Reducing Transaction Costs 619
McDonald’s Global Compensation Practices 590
Managing the Tax Burden 620
Expatriate Pay 591
Moving Money Across Borders 621
Building a Diverse Global Workforce 592
360° View: Impact of the Macro Environment 625
Management Focus
Key Terms 626
Sodexo: Building a Diverse Global Workforce 594
Summary 626
International Labor Relations 595 Critical Thinking and Discussion Questions 627
The Concerns of Organized Labor 595 Research Task 627
The Strategy of Organized Labor 596
Closing Case
Approaches to Labor Relations 596
Microsoft’s Acquisition of Skype 628
360° View: Impact of the Macro Environment 597
Endnotes 629
Key Terms 598
Summary 598
Critical Thinking and Discussion Questions 599
Research Task 600 part seven
Closing Case Integrative Cases
The Evolution of HR Strategy at IBM 600
Endnotes 601 How the iPhone Is Made: Apple’s Global Production
System 632
Kenya: An African Lion 634
CH APTER 20
Accounting and Finance in International Poland: Eastern Europe’s Economic Miracle 636
Business 604 Culture and Business in Saudi Arabia 638
Opening Case Microsoft Goes Carbon Neutral 640
Google Ends Its “Double Irish-Dutch Sandwich” Tax
A Tale of Two Nations: Ghana and South Korea 642
Minimization Scheme 605
American Steel Tariffs 644
Introduction 606
Starbucks’ Foreign Direct Investment 646
National Differences in Accounting Standards 606
The Cost of Brexit 648
International Accounting Standards 608
Managing Foreign Currency Exposure at 3M 650
Country Focus
Chinese Accounting 609 Pakistan Takes Another IMF Loan 652
Accounting Aspects of Control Systems 610 Saudi Aramco 654
Exchange Rate Changes and Control Systems 610
Red Bull 656
Transfer Pricing and Control Systems 612
Separation of Subsidiary and Manager Performance 612 Dow Chemical’s Global Matrix Structure 658

xxv
Walmart International 660 Marketing Sneakers 668
IKEA Entering India, Finally! 662 Global Mobility at Shell 670
Higher Education Exporting and International
Competitiveness 664 Glossary 672
Blockchain Technology and Global Supply Chains 666 Indexes 683

xxvi
International
Business
Competing in the Global Marketplace
14e
part one Introduction and Overview

Globalization
LEARNING OBJECTIVES
After reading this chapter, you will be able to:
1
LO1-1 Understand what is meant by the term globalization.

LO1-2 Recognize the main drivers of globalization.

LO1-3 Describe the changing nature of the global economy.

LO1-4 Explain the main arguments in the debate over the impact of globalization.

LO1-5 Understand how the process of globalization is creating opportunities and challenges for
management practice.

Wang Chun/VCG via Getty Images

Another random document with
no related content on Scribd:
den, and cut her loose; so we dragged the ship away around South
of the den, taking us all the forenoon, and we could see the lions on
the rocks sunning themselves and probably talking over in lion
language what they would do to us if we got fresh, and every little
while they would cough like a case of pneumonia, and it made my
hair raise, but Pa was so cool he had to turn his collar up.
After a few hours we got the ship in the right place, about a quarter
of a mile south of the den, and Pa got the cowboy ready with his
lasso, and the German ready to yell murder in his language, and the
negro ready to throw overboard for the lions to eat, and Pa said,
“Turn her loose,” and we let go of the rope, and the ship sailed right
straight for the den, and we all climbed upon a big rock to watch the
proceedings. It was the most exciting moment of my life, except the
time the fat woman in the circus sat down in Pa’s lap, and crushed
him beyond recognition and they had to scrape him up with case
knives.
There was Pa at the wheel, his eyes staring ahead at the lions, all of
the lion family having come out of the den to see the air ship, and the
dog lion, the head of the household waving his tail and making the
air fairly tremble with his roaring.
Pretty soon the airship was right over the den, the lasso was thrown
over the dog lion’s neck, and drawn tight, and he coughed and
strangled like a negro being lynched, and then he turned tail and ran
down into the den in the rocks, with all the other lions after him,
dragging the ship back into the entrance of the den, and closing the
hole completely, and we all rushed up and tied the rope to trees, so
the gas bag was right over the hole, tight as a drum, and Pa got
down off the frame, and as Mr. Hagenbach came up in a perspiration
Pa said, “There’s your lions, about a dozen of them captured down in
that hole; help yourselves,” and Pa sat down on the ground like a
man who had conquered the world, and was waiting for the
applause. Mr. Hagenbach said that was all right, so far as it had
gone, but what he wanted was lions in cages, ready to ship to
Germany, and not down in a hole in the ground that might be as
deep as a copper mine, with no elevator to bring the lions to the
surface. “Well,” said Pa, as he lit a cigar, “there’s a perfectly good
dog Numidian lion, with a black mane, on the end of that lasso, and
all you got to do is to pull him up, just as you would a muscalonge on
a line, and when he comes to the surface after I have finished my
cigar, I will hog tie him and have him ready for shipment quicker’n a
wink,” and Pa yawned, as though capturing wild lions was as easy
for him as catching mice in a trap.

“There’s Your Lions, About a Dozen Captured Down in That

Hole; Help Yourselves,” Said Pa.
So the crowd all got hold of the lasso and began to pull up, and of all
the snarling and howling you ever heard, that beat the band. The old
lion seemed to catch on to everything coming up, and all the other
lions roared until the rocks on which we stood fairly trembled like
there was an earthquake, but the old dog kept coming and I felt as
though something terrible was going to happen, and I began to get
farther away. Pa knocked the ashes off his cigar and asked the
cowboy how much more rope there was left, and was told about ten
feet, so he told them to let up a minute until the driver drove the cage
up to a point on the rock not far from where the lion would come out,
and when the cage was ready and the door open, so the lion could
see a goat tied in the cage eating hay, Pa said to the men to give a
few more jerks, and, by Gosh, pretty soon the lion’s head and neck
came out of the hole, and he was the maddest looking animal I ever
saw, and the men looked scared.
The lion was bracing with his front feet, and using all kinds of
language, but Pa was the coolest man in the bunch. “Now, let him
rest a minute,” says Pa, “but hold the line taut,” and Pa took out a
bag of tobacco and a piece of paper and rolled a cigarette, and lit it,
and we all looked at Pa in admiration for his nerve.
After puffing his cigarette a little, and looking to see if the cage was
entirely right, he ordered the men who were not pulling on the rope
to line up in two lines from the hole to the cage, like the honorary pall
bearers at a funeral, and told them not to move until the lion was in
the cage, and when they were all in place, Pa said, “Now jerk his
head plumb off,” and the crowd pulled and the lion came out of the
hole mad and frothing at the mouth. Pa stepped one side and gave
the lion a swift kick in the ham, and the king of beasts put his tail
between his legs and started for the hearse cage, and Pa said, “Get
in there, you measly cur dog,” and Pa followed him, kicking him
every jump, until the big lion rushed into the cage and laid down, so
completely conquered that he bellowed pitifully when the goat butted
him off of the hay, and Pa closed the door and locked it and turned to
Mr. Hagenbach and asked, “How many of these vermin do you
want?” and he said, “Now that we were about it we had better get the
whole bunch.” Pa said “all right, he was there after lions, and he
wanted to get the limit,” so they signalled camp for some more
cages, and Pa said we had better have lunch right there on the rock
beside the airship in the shade, while he prepared to catch the rest
of the lions.

“Get in There, You Measly Cur Dog,” Said Pa, Kicking the
Big Lion at Every Jump.

Pa was attaching a long rubber hose to the gas bag, and as he got it
fastened and reeled about fifty feet of the hose down in the hole, Mr.
Hagenbach said, “Say, old man, I don’t want to kick on any of your
new inventions, but what are you going to do now?” and Pa said, as
he turned a faucet in the gas bag and let the gas into the hose,
“Didn’t you ever drown gophers out of a hole by pouring water in,
until the gophers came to the top strangling, and you put them in a
shot bag and let them chew your fingers? Well, I am going to drown
out big gophers with gas, and in about fifteen minutes after we have
had lunch, you will see the dammest procession of sneezing lions
come up out of that hole that ever were in captivity, and I want all of
you brave ducks to hold the bags over the hole, and when you get a
lion in a bag tie the bag and roll the beast over the rock, see?”
Well, they got the gunny sacks ready, and after we had our lunch
and the gas was filling the hole good and plenty, there was a lot of
sneezing and roaring down the hole, and Pa said the medicine was
working all right, and pretty soon Pa turned off the gas and
unscrewed the hose, and loosened the ropes on the air ship so she
sailed off across the veldt for a block or so, and then the trouble
began.
First a big she lion came up with a mess of cubs, and they held the
bag all right, but she went right through it like a bullet through
cheese, and then there was an explosion away down in the bowels
of the earth, from the toe nails of some unmanicured lion striking fire
on a flint stone, and fire began to pour out of the hole, and about
nine singed lions of all sizes came up out of the hole scared to
death, and the smell of burned hair was awful.
The lions began to cuff the men and they stampeded down the
rocks, leaving Pa and two or three of us alone. Pa and I seized a
couple of the baby lions and started to run for camp, and the lions
took after us and chased us awhile, until Pa got out of wind, when
we climbed trees with the cubs, and the lions rolled in the grass to
put out the fire, and then they took to the jungle, and Pa said when
Roosevelt got to Africa and shot a few singed lions, he would think it
was a new kind of beast.
We got back to camp with the two cubs, and called the roll to see
who was missing, and we found the natives had packed up and
moved away, claiming that the old man was a devil who had
produced a burning mountain, and the whole country would be
devastated.
We sent all our animals to the coast to be shipped to Berlin and
moved our camp up to the jungle, about fifty miles, where there is a
new tribe of natives, and where it is said the country is inhabited with
gorillas.
Pa says he is going to move a cage into the gorilla country, and call
the gorillas around him, learn their language, get their confidence,
and eventually reform them and bring them to realize that they are
endowed with certain inalienable rights, and teach them white man’s
customs, and Pa will do it or die trying, but I don’t like the idea, as it
seems dangerous to Pa. Say, those gorillas are bigger than John L.
Sullivan, and they hug like bears. Gee, but I want to see gorillas
hanging by their tails on trees, and Pa says I may go with him.
 CHAPTER XVI.
The Boy’s Pa Shows Bravery in the Jungles in Africa—Four Gorillas
Chase Pa—The Boy and His Pa Don’t Sleep Much at Night—The Boy
Discovers a Marsh Full of Wild Buffaloes.

I do not know whether Pa is an expert in hypnotism or what it is, but

he certainly delivers the goods when he goes after a wild animal in
the jungles of Africa, and he shows bravery at times that astonishes
everybody, but he admits that he is a coward at heart, and would run
if anybody pulled a gun on him, and I guess he would, but you turn
him loose in a wild animal congress and he will be speaker and
make the whole bunch get on their knees.
I was scared when Pa wanted to have a cage with iron bars hauled
into the jungle where the gorillas live, and insisted that he be left
there alone for two days, with rations to last a week, as he said he
expected to have some gorilla boarders to feed, but Mr. Hagenbach
let Pa have his way, and the cage was hauled about eight miles into
the black wilderness, with great trees and vines and suckes and
gorillas all around him, but Pa insisted on having a phonograph full
of jig tunes, and when we got the cage located and Pa in it and were
ready to leave, I cried, and the whole crowd felt as though we would
never see Pa alive again, and it was a sad parting.
When we left Pa he was cooking some bacon on an oil stove in the
cage and frying some eggs for his dinner, and as we took the trail
back to camp, in silence, we could smell the bacon frying, and when
we got a mile or so away we heard music and stopped to listen and
could plainly hear the phonograph playing “There will be a hot time,”
and Mr. Hagenbach said it reminded him of a dirge.
It was a long two days before we could go back and find Pa’s
remains, but the second day we hiked out through the jungle and
into the woods. Pa had told us that when we came after him to come
quiet and not disturb the menagerie, so when we got near the place
where we left Pa we slowed down and crept up silently and peeked
through the bushes and a sight met our eyes that scared me.
There were four big gorillas and several little ones around the cage,
and some were gnawing ham bones and others were eating dog
biscuits, but it was so silent in the cage that I thought Pa had been
killed and that the gorillas were eating him, so I yelled, “Pa, are you
all right?” and he answered back, “You bet your sweet life I am all
right,” and then we prepared to go the cage, when Pa said for us to
climb trees, and just then the gorillas started for us with their teeth
gleaming, and we all shinned up the trees around the cage, and we
had front seats at the biggest show on earth. Pa told us that the
gorillas that treed us were afraid we were going to harm him, and
they proposed to protect him.
He said he had been feeding the animals for two days and had got
their confidence so he could make them understand what he wanted
them to do.
“Now watch ’em dance when I turn on the music,” and then Pa gave
them the “Merry Widow” waltz, and by gosh if a big gorilla didn’t put
his arm around his wife, or some other gorilla’s wife, and dance
barefooted right there in front of the cage, and all the rest joined in,
and the baby gorillas rolled over on the ground and laughed like
hyenas. Pa stopped the music and called one big gorilla Rastus and
told him to sit down in the cactus, and the others did the same, and
Pa repeated an old democratic speech of his, and they clapped their
hands just like a caucus. “Well, what do you know about that
already,” said Mr. Hagenbach, and then he asked Pa how he was
going to capture them.
 Pa Stopped the Music and Repeated an Old Democratic
Speech of His and They Acted Just Like a Caucus.

Pa said he had them in the cage several times and let them out, and
when we got ready to go to camp all he had to do was to let the
phonograph play “Supper is now ready in the dining car,” and they
would come in and he would slip out and lock the door and we could
haul the cage to camp.
 All He Had to Do Was to Play “Supper is Now Ready in the
Dining Car” on the Phonograph.

Well, you ought to have seen my old gentleman call the whole bunch
of gorillas into the cage and feed them and see them act like a lot of
boys in camp, reaching for potatoes and bacon and wiping their lips
on their hairy arms, but none of them asked for napkins or finger
bowls. When the food was all gone they began to kick like boarders
at a second-class boarding house, and then Pa slipped out of the
door and locked it, and we came down out of the trees and
surrounded the cage, and Pa acted as barker and told us the names
he had given to the gorillas.
Pa brought the phonograph out of the cage and set it going and the
gorillas began to dance. Mr. Hagenbach was so pleased that he
fairly hugged Pa, and we got ready to haul the cage to camp.
Pa always makes some mistake before he has a proposition well in
hand, and he did this time, of course. As we were about to start the
gorilla Rastus, who had become Pa’s chum, looked at Pa so pitiful
that Pa said he guessed he would let Rastus out and he and Rastus
would walk along ahead and get the brush out of the road, so he
opened the door of the cage and beckoned to Rastus, and the big
gorilla came out with his oldest boy, and Pa and the two of them took
hold of hands and started on ahead, and we started to haul the
wagon by drag ropes, when the worst possible thing happened.
Rastus reached in Pa’s pistol pocket, where Pa had just put a large
plug of tobacco after he had bit off a piece, and Rastus thought
because Pa ate the tobacco he could, so he bit off about half of the
plug and ate it and gave his half-grown boy the rest of it, and that
was eaten by the boy. Pa tried to take it away from them, but it was
too late, and they were both mad at Pa for trying to beat them out of
their dessert.
It was not long before Rastus turned pale around the mouth, but his
face was so covered with hair that you couldn’t tell exactly how sick
he was; though, when he put both hands on his stomach, gave a yell
and turned some somersaults, we knew he was a pretty sick gorilla,
and his boy rolled over and clawed his stomach and had a fit.
Rastus had the most pained and revengeful look on his face I ever
saw, and he looked at Pa as though he was to blame.
Pa had one of the men get the medicine chest, and Pa fixed two
seidlitz in a tin cup, but before he could put in the water Rastus had
swallowed the powder from the white and blue paper and reached
for a wash basin of water, and before Pa could prevent Rastus from
drinking it on top of those powders, he had swallowed every drop of
the water, and the commotion inside of him must have been awful,
for he frothed at the mouth and the bubbles came out of his nose,
and he rolled over and yelled like a man with gout, and he seemed to
swell up, and Pa looked on as though he had a case on his hands
that he couldn’t diagnose, while Rastus’ boy just laid on the ground
and rolled his eyes as though he were saying his “Now I lay me,” and
Mr. Hagenbach said to Pa he guessed he had broke up the show,
and Pa said, “Never you mind, I will pull them both through all right.”
Finally the siedlitz powder fiz had all got out of Rastus’ system and
he seemed to be thinking deeply for a moment, and then he got off
his haunches and looked steadily into Pa’s eyes for a minute, and
then he took Pa by one hand and his boy with the other and started
right off through the jungle, Pa pulling back and yelling to us to
rescue him from the gorilla kidnapers, but Rastus walked fast and
before he had got ought of sight he had picked his sick boy up and
carried him under his arm and both were groaning, and he held on to
Pa’s hand and went so fast that Pa’s feet only hit the high places.
The gorillas in the cage looked at them disappear and tried to get out
of the cage to go along, but they couldn’t get out.
Finally Mr. Hagenbach said me, “Hennery, I guess your Pa has got
what is coming to him this time. Rastus will probably drag your Pa up
a tree and eat him when his appetite comes back, but we can’t help
him, so we better haul the cage and the gorillas that have not had
any tobacco to camp, and in a day or two we will all come out here
and find your father’s bones and bury them.”
And then we all went to camp, and the poor gorillas just remained
listlessly in the cage, mourning as though they knew Rastus and his
boy were dead. We fed them everything we could spare, but they
would not eat, and by watching them we found there was a case of
jealousy in the cage, as two male gorillas seemed to be stuck on a
young female, and they were scrapping all the time.
Gee, but we needed Pa worse than ever to settle the gorilla dispute,
but we all felt that Pa was not of this earth any more, and the camp
took on an air of mournfulness, and they all wanted to adopt me,
’cause I was alone in the world. There was not much sleep in camp
that night, and the next day we were going out with guns to find Pa’s
remains and shoot Rastus, but a little after daylight we heard the
night watchman say to the cook, who was building a fire, “Look
who’s here, and what do you know about that,” and he called the
whole camp up, and we looked out across the veldt and there came
Pa astradle of a Zebra, with Rastus’ boy up behind him and Rastus
thoroughly subdued, leading the Zebra with a hay rope Pa had
twisted out of grass.
The whole camp came to attention and Pa scratched a match on
Rastus’ hair and lighted a cigarette, and when he got near enough
he said: “Slept in the crotch of a tree all night. Gave Rastus and his
boy a drink of whiskey out of my flask and cured them of the tobacco
sickness, had some mangoes for breakfast, sent Rastus to catch a
Zebra, and here we are ready for coffee and pancakes.”
Pa got off his zebra, opened the door of the cage and pointed to it,
and Rastus and his boy got in, and Pa kicked Rastus right where the
hair was worn off sitting down, and Rastus looked at Pa as though
that was all right and he deserved it. Then Pa closed the door,
washed his hands and sat down to breakfast, and when Mr.
Hagenbach said, “Old man, you have got Barnum and Forepaugh
skinned a mile,” Pa said, “O that is nothing; I have located a marsh
full of wild Buffaloes, and we will go out there and get a drove of
them in a few days.
“They are the ugliest and fightingest animals in the world, but I will
halter break some of them and ride them without any saddle.” Mr.
Hagenbach said he believed it, and Pa said, “Hennery, one spell I
thought you would be an orphan, but whiskey saved you. When they
got a big drink of whiskey they began to laugh, and then fell on my
neck and cried, just like a white man when he is too drunk to fight.
Well, I am going to take a nap,” and Pa laid down on a bale of hay
and slept all day, and the crowd talked about what a hero he was.
 CHAPTER XVII.
The Boy’s Experience With an African Buffalo—The Boy’s Pa Shoots
Roman Candles to Scare the Buffaloes—The Boy’s Pa Tames the
Wild Animals.

When Pa told us that he had located a place where we could get all
the wild African buffalo that we wanted, I thought of the pictures I
had seen of the killing of buffaloes in America, where all the buffalo
hunter had to do was to ride a horse after a herd of the animals, that
couldn’t run faster than a yoke of oxen, pick out a big bull and ride
alongside of him and fire bullets into his vital parts at about ten feet
range, until his liver was filled full of holes and he had the nose
bleed, and when he fell down from loss of blood, dismount and skin
him for a lap robe. The American buffalo would always run away and
the hunter could kill him if he had cartridges enough, and never be in
any more danger than a farmer milking a cow.
I thought we would have about the same kind of experience with
African buffalo, only we intended to lasso them and bring them to
camp alive for the show business, but instead of the African buffalo
running away from you, he runs at you on sight and tries to gouge
out your inside works with his horns, and paws you with his hoofs,
and when he gets you down he kneels down on you and runs horns
all through your system and rolls over on your body like a setter dog
rolling on an old dead fish.
The African buffalo certainly has a grouch, as though he had
indigestion from eating cactus thorns, and when he sees a man his
eyes blaze with fire and he gets as crazy as an anarchist and seems
to combine in his make-up the habits of the hyena, the tiger, the
man-eating shark and the Texas rattlesnake.
I wouldn’t want such an animal for a pet, but Pa said the way to get
buffaloes was to go after them and never let up until you had them
under your control. So we started out under Pa’s lead to capture
African buffalo, and while the returns are not all in of the dead and
wounded, we know that our expedition is pretty near used up.
These African buffaloes live in a marsh, where the grass and cane
grows high above them, and the only way you can tell where they
are is to watch the birds flying around and alighting on the backs of
the animals to eat wood ticks and gnats. The marsh is so thick with
weeds that a man cannot go into it, so we planned to start the airship
on the windward side of the marsh, after lining up the whole force of
helpers, negroes and white men, and building a corral of timber on
the lee side of the marsh. Pa and the cowboy and I went in the
airship, with those honk-honk horns they have on automobiles, and
those megaphones that are used at football games, and Pa had a
bunch of Roman candles to scare the buffaloes.
When the fence was done, which fifty men had worked on for a
week, it run in the shape of a triangle or a fish net, with a big corral at
the middle. Mr. Hagenbach sent up a rocket to notify Pa that he was
ready to have him scare the buffaloes out of the marsh, down the
fence into the corral.
Pa had the gas bag all full, a mile across the marsh, tied to a tree
with a slip noose, so when we all got set he could pull a string and
untie the slip noose.
Well, everything worked bully, and when Pa tied her loose we went
up into the air about fifty feet, and Pa steered the thing up and down
the marsh like a pointer dog ranging a field for chickens.
It was the greatest sight I ever witnessed, seeing more than two
hundred buffalo heads raise up out of the tall grass and watch the
airship, looking as savage as lions eating raw meat.
First they never moved at all, but we began to blow the honk horns,
and then we yelled through the megaphones to “get out of there, you
sawed off short horns,” and then they began to move away from the
airship across the marsh, and we followed until they began to get
into a herd, nearly on the other side of the marsh, but they only
walked fast, splashing through the mud.
When we got almost across the marsh Pa said now was the time to
fire the Roman candles, so we each lit our candle, and the fire and
smoke and the fire balls fairly scorched the hair of the buffaloes in
the rear of the herd, and in a jiffy the whole herd stampeded out of
the marsh right toward the fence, bellowing in African language,
scared half to death, the first instance on record that an African
buffalo was afraid of anything on earth.
We followed them until they got to the fence, but only about one
hundred got into the corral, the others going around the fence and
chasing the keepers into the jungle and hooking the negroes in the
pants, and some of the negroes are running yet, and will, no doubt,
come out at Cairo, Egypt.
 Some of Those Negroes Are Running Yet, and Will No
Doubt Come Out at Cairo, Egypt.

Mr. Hagenbach and the white men got up in trees and watched Pa
and the airship, and when we got where the fence narrowed up at
the corral Pa let the airship come down to the ground and anchored
it to a stump and yelled for the boss of the expedition and the men to
come down out of the trees and help capture some of the best
specimens; so they came down and tore out the wings of the fence
and placed them across so we had the buffaloes in a pen, and then
Mr. Hagenbach, who had been getting a little jealous of Pa, came up
to him and shook his hand and told him he was a wonder in the
capturing of wild animals, and Pa said don’t mention it, and Pa took
the makings and made himself a cigarette and smoked up, and Mr.
Hagenbach asked Pa how we were going to get the buffaloes out of
the corral, ’cause they were fighting each other in the far end of the
pen, and Pa said you just wait, and he sent for the cages, enough to
hold about ten of the buffaloes, and we let the gas out of the airship
and went into camp right there, and Pa bossed things for about two
days, until the buffaloes got good and hungry, and then we backed
the cages up to an opening in the fence and put hay in the far end of
the cages, and the herd began to take notice.
We wanted the big bulls and some cows, and nature helped us on
the bulls, ’cause they fought the weaker ones away from the cages,
and walked right up the incline into the cages, and Pa went in and
locked the doors, and when we got the cages full of bulls and started
to haul the cages to camp by the aid of some of the negroes who
had returned alive, by jingo, the cows followed the cages with the
bulls in, and you couldn’t drive them away.
We loaded the gas bag on to a sort of stone boat, and Pa rigged up
a couple of ox yokes and in some way hypnotized a few cow
buffaloes so he could drive them, and they hauled the stone boat
with the airship to camp, and we got there almost as soon as the
cages did, and Pa was smoking as contented as though he was
walking on Broadway, and with an ox gad he would larrup the oxen
and say, “Haw Buck,” like a farmer driving oxen to plow a field.
Pa got his wild oxen so tame before we got to camp that they would
eat hay out of his hand, and when we rounded up in our permanent
camp and looked over our stock and killed some of the buffaloes that
had followed the cages, for meat for the negroes, and lit some sky
rockets and fired them at the balance of the herd to drive them away
from camp, the negroes, who had always had a horror of meeting
wild buffaloes, thought Pa was a superior being to be able to tame a
whole herd of the most savage animals, and they got down on their
knees and placed their faces in the dust in front of Pa and
worshipped him, and they wouldn’t get up off the ground until Pa had
gone around and put his feet on the necks of all the negroes in token
that he acknowledged himself to be their king and protector, and the
wives of the negroes all threw their arms around Pa and hugged him
until he got tired, and he said he had rather fight buffaloes than be
hugged by half naked negro women that hadn’t had a bath since
Stanley discovered them, but Pa appreciated the honor, and Mr.
Hagenbach said Pa was the greatest man in the world.

Pa Had to Put His Foot on Their Necks and Acknowledge

Himself Their King and Protector.

The next day we shipped the buffaloes to the coast and had them
sent to Berlin, and when we got the mail from headquarters there
was an order for a lot more tigers, so I suppose we will be tigering as
soon as the open season is on.
The idea is that we must get all the animals we can this year, for it is
rumored that Roosevelt is coming to Africa next year to shoot big
game, and all of us feel that wild animals will be scarce after he has
devastated Africa.
We got short of Salt Pork, and some time ago Pa salted down some
sides of rhinoceros, and yesterday was the day to open the barrel.
Pa showed the cooks how to fry rhinoceros pork, and I tell you it
made you hungry to smell rhinoceros frying, and with boiled potatoes
and ostrich eggs and milk gravy, made from elephant milk, we lived
high, but the next day an epidemic broke out, and they laid it to Pa’s
rhinoceros pork dinner, but Pa says any man who eats eight or nine
fried ostrich eggs is liable to indigestion.
Gee, but this is a great country to enjoy an outing in.