The context of international business has evolved over the years and has always refl ected the climate of the time. Three major changes that have taken place in the last decade or so should be noted. First, the landscape of the global economy changed drastically in the ...
The context of international business has evolved over the years and has
always refl ected the climate of the time. Three major changes that have
taken place in the last decade or so should be noted. First, the landscape of
the global economy changed drastically in the last decade or so. The Asian
and Latin American fi nancial crises, the further expansion of the European
Union (EU), and the emergence of BRIC (Brazil, Russia, India, and
China) as economic powerhouses have occurred during this period. And
most recently, the global fi nancial and economic crisis caused primarily
by the U.S. subprime mortgage loan crisis since late 2008 is ravaging the
integrity of the global economy with unprecedented severity.
Second, the explosive growth of information technology tools, including
the Internet and electronic commerce (e-commerce), has had a signifi
cant effect on the way we do business internationally. On one hand,
everyone seems to agree that business transactions will be faster and more
global early on. And it is very true. As a result, the nature of the global
supply chain and global trade as managed by multinational fi rms has fundamentally
changed. However, on the other hand, the more deeply we
have examined this issue, the more convinced we have become that certain
things would not change or could even become more local as a result
of globalization that the Internet and e-commerce bestow on us.
Third, it is an underlying human tendency to desire to be different
when there are economic and political forces of convergence (often referred
to as globalization). When the globalization argument (and movement)
became fashionable in the 1980s and 1990s, many of us believed that
globalization would make global business easier. Doing business beyond
national borders, indeed, has become easier, but this does not necessarily
mean that customers want the same products in countries around the
world. For example, many more peoples around the world than ever before
are trying to emphasize cultural and ethnic differences as well as accepting
those differences. Just think about many new countries being born as well
as regional unifi cations taking place at the same time.
Indeed, these global changes we have observed in recent years are
more than extraordinary. As a result, business practitioners are facing
enormous challenges to cope with those changes in an uncertain world.
This book is constitutes a timely compilation of work addressing marketing
in an uncertain world, competition from emerging and reemerging
markets, global sourcing, and meeting old and new global challenges.