International Management: Culture, Strategy, and Behavior 11th Edition by Fred Luthans Solution man

Globalization in U.S. History
The Declaration of Independence cites the desire to “establish commerce” as a chief rationale for establishing an independent state.
Globalization was historically and is even today the key driver of world economic development.
A Closer Look: Outsourcing and Offshoring
Summary
Offshoring refers to the process by which companies undertake activities at offshore locations instead of in their countries of origin. Outsourcing is the subcontracting or contracting out of activities to external organizations that had previously been performed within the firm, and it is a wholly different phenomenon.
The two have combined in “offshore outsourcing.” Offshoring began with manufacturing and globalization and expanded to services like call centers, R&D, information services, legal work, and banking services. Sensitive information and privacy issues are of concern.
 
Source: Pete Engardio and Assif Shameen, “Let’s Offshore the Lawyers,” BusinessWeek, September 18, 2006, p. 42; and Tony Hallett and Andy McCue, “Why Deutsche Bank Spreads Its Outsourcing,” BusinessWeek, March 15, 2007.
International Management in Action: Apple Inc. and the Impact of a “Trade War”
Summary
After President Trump was elected to office, tariffs became a reality in January 2018, when the Trump administration imposed its first set of taxes on imported solar panels and washing machines.  Additional tariffs on steel and aluminum, along with nearly 1300 additional Chinese imports followed in March.
Arguably no company has more to lose in a trade dispute between the U.S. and China than Apple Inc.  In May 2018, CEO Tim Cook traveled to the White House to directly reiterate Apple’s dependence on the Chinese market to President Trump.
The iPhone is designed in California, but assembled in China, and therefore is a Chinese export. President Trump has assured Apple its products will not be subject to tariffs but if the trade war continues to escalate, virtually all imports from China, including the iPhone, could be subject to significant tariffs, eventually squeezing profitability.
Apple’s supply chain further complicates its situation.  The company sources materials from suppliers that span the globe. If China starts restricting the company’s production, Apple may be forced to reconfigure its supply chain, train new employees, and develop new facilities.
As Apple’s situation highlights, “trade wars” and protectionist policies can have a substantial impact on MNCs.
Sources: Jack Nicas and Paul Mozur, “In China Trade War, Apple Worries It Will Be Collateral Damage,” The New York Times, June 18, 2018, https://www.nytimes.com/2018/06/18/technology/apple-tim-cook-china.html;
Tripp Mickle, “Apple Vulnerable in U.S.-China Trade Showdown,” The Wall Street Journal, July 24, 2018, https://www.wsj.com/articles/apples-china-ties-make-it-vulnerable-if-trade-fight-gets-worse-1532430003;
Tripp Mickle, “Apple Avoids U.S. Tariffs on Smartwatches, Earbuds,” The Wall Street Journal, September 17, 2018, https://www.wsj.com/articles/for-apple-u-s-china-trade-fight-grows-riskier-1537188213
International Management in Action: Recognizing Cultural Differences
Summary
Doing business overseas cannot happen without learning about and trying to understand the customs, cultures, and work habits of people in other countries. Equally effective management styles must be developed.
The example of Russia follows. Russia is moving from a central to a market economy, and management is changing along with that new direction. The United States and Russia interpret “partnerships” differently. Management in Russia is more authoritarian than that of the United States; the chain of command, responsibility, communication, and the decision-making process are all affected by this difference in management style. Looking back at history and incorporating the evolutionary knowledge can aid the understanding of emerging economies.
Websites:
http://www.usrbc.org
http://www.careerwatch.com
International Management in Action: Brazilian Economic Reform and Recent Challenges
Summary
Brazil has transformed itself from a relatively closed and frequently unstable economy to one of the global leading “BRIC” countries and the anchor of South American economic development.
The Plano Real (Real Plan, 1994) sought to peg the real to the U.S. dollar in order to bring inflation down. Brazilian goods became more expensive in relation to imports. However, foreign financial groups took an interest in Brazil. The country’s debt came down, and this helped reassure investors that Brazil would maintain tight fiscal and monetary policy, even with a floating currency.