Manajemen | Fakultas Ekonomi Universitas Maritim Raja Ali Haji joeb.82.5.300-304

Journal of Education for Business

ISSN: 0883-2323 (Print) 1940-3356 (Online) Journal homepage: http://www.tandfonline.com/loi/vjeb20

Book Review
James L. Morrison
To cite this article: James L. Morrison (2007) Book Review, Journal of Education for Business,
82:5, 300-304, DOI: 10.3200/JOEB.82.5.300-304
To link to this article: http://dx.doi.org/10.3200/JOEB.82.5.300-304

Published online: 07 Aug 2010.

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Date: 11 January 2016, At: 23:28

BOOK฀REVIEW

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Ajami,฀Riad฀A.,฀Cool,฀Karel,฀Goddard,฀
G.฀Jason,฀Khambata,฀Dara.฀International฀
Business:฀Theory฀and฀Practice฀(2nd฀
ed.).฀London:฀M.฀E.฀Sharpe,฀2006,฀548฀
pp.฀ISBN฀10:978-0-7656-1780-4.฀$78฀
(Hardcover)

I

nternational฀networks฀of฀multinational฀enterprises฀have฀grown฀significantly฀during฀the฀past฀several฀decades.฀The฀
rapid฀ growth฀ of฀ global฀ economic฀ links฀
among฀organizations฀has฀resulted฀in฀the฀
need฀for฀today’s฀managers฀to฀make฀decisions฀that฀are฀extremely฀challenging.฀In฀

this฀regard,฀the฀purpose฀of฀the฀textbook฀
is฀to฀provide฀the฀undergraduate฀business฀
major฀with฀an฀overview฀of฀multinational฀
management฀by฀focusing฀on฀such฀topics฀
as฀international฀accounting฀and฀finance,฀
outsourcing,฀ ethics,฀ environmental฀
issues,฀and฀social฀responsibility.
The฀ authors฀ have฀ divided฀ the฀ text฀
into฀ five฀ segments฀ beginning฀ in฀ Part฀ I฀
with฀ an฀ overview฀ of฀ the฀ multinational฀
corporation.฀ In฀ Part฀ I,฀ the฀ authors฀ provide฀ the฀ reader฀ with฀ a฀ historical฀ perspective฀ regarding฀ the฀ evolution฀ of฀ the฀
multinational฀ corporations,฀ initiating฀
with฀ its฀ definition฀ and฀ following฀ with฀
an฀ introduction฀ to฀ several฀ examples฀ of฀
successful฀multinationals,฀such฀as฀Sony,฀
Citigroup,฀ and฀ Nestlé฀ (Switzerland).฀
They฀have฀given฀considerable฀attention฀
to฀ the฀ effects฀ of฀ increased฀ competition฀
that฀ resulted฀ from฀ new฀ multinational฀
corporations฀(MNC)฀entrants฀into฀world฀

trade.฀The฀authors฀have฀carefully฀delineated฀ varying฀ methods฀ of฀ expanding฀
the฀ capacity฀ of฀ multinationals,฀ such฀ as฀
export,฀franchise,฀contract฀manufacture,฀
and฀form฀strategic฀alliances.฀They฀conclude฀ this฀ segment฀ with฀ a฀ discussion฀
of฀ how฀ governments฀ around฀ the฀ world฀
intervene฀via฀trade฀restrictions.
In฀Part฀II,฀the฀authors฀have฀provide฀the฀
business฀ major฀ with฀ a฀ review฀ of฀ basic฀
economic฀ theory฀ by฀ presenting฀ classical฀ viewpoints฀ of฀ Adam฀ Smith,฀ David฀
Ricardo,฀ and฀ John฀ Kenneth฀ Galbraith,฀
among฀ others.฀ The฀ segment฀ also฀ con-

300฀

Journal฀of฀Education฀for฀Business

tains฀ a฀ discussion฀ of฀ how฀ the฀ International฀ Monetary฀ Fund฀ and฀ the฀ World฀
Bank฀function.฀This฀explains฀to฀the฀reader฀how฀currency฀is฀exchanged฀around฀the฀
world.฀In฀this฀regard,฀the฀authors฀devote฀
considerable฀ attention฀ to฀ explaining฀ the฀

need฀ to฀ achieve฀ global฀ financial฀ stability฀ as฀ currency฀ is฀ converted฀ between฀
countries฀ active฀ in฀ world฀ trade.฀ They฀
begin฀ with฀ a฀ discussion฀ of฀ past฀ monetary฀ policy,฀ which฀ initially฀ relied฀ on฀ a฀
gold฀ standard฀ for฀ establishing฀ stability฀
in฀the฀early฀decades฀of฀the฀20th฀century.฀
They฀explain฀the฀effects฀of฀the฀establishment฀of฀the฀Bretton฀Woods฀System,฀followed฀ by฀ the฀ introduction฀ of฀ the฀ Floating-Rate฀ era฀ in฀ the฀ 1970s.฀ In฀ addition,฀
other฀important฀topics฀that฀are฀integrated฀
into฀ the฀ text฀ for฀ analysis฀ include฀ the฀
establishment฀of฀the฀European฀Monetary฀
Union,฀ the฀ Maastricht฀ Treaty,฀ and฀ the฀
Asian฀financial฀crisis.
In฀ Part฀ III,฀ the฀ authors฀ emphasize฀
the฀ need฀ to฀ understand฀ the฀ concept฀ of฀
risk฀ management฀ as฀ business฀ leaders฀
attempt฀ to฀ function฀ in฀ a฀ global฀ market.฀ Topics฀ that฀ are฀ introduced฀ at฀ this฀
point฀ in฀ the฀ text฀ relate฀ to฀ forecasting฀
demand,฀ adhering฀ to฀ international฀ law,฀
and฀ accommodating฀ intellectual฀ property฀rights.฀Of฀particular฀interest฀in฀this฀
segment฀is฀the฀discussion฀of฀issues฀that฀
managers฀ of฀ multinational฀ companies฀

frequently฀are฀required฀to฀address,฀such฀
as฀ antidumping฀ and฀ antitrust฀ laws,฀ foreign฀corrupt฀practices,฀and฀international฀
tax฀treaties.
In฀ Part฀ IV,฀ the฀ authors฀ assist฀ the฀
business฀ major฀ in฀ understanding฀ how฀
managers฀ in฀ multinational฀ corporations฀produce,฀promote,฀price,฀and฀place฀
products฀ and฀ services฀ in฀ a฀ marketplace฀
without฀ boundaries.฀ Topics฀ for฀ study฀
include฀a฀manager’s฀need฀to฀understand฀
the฀ idiosyncrasies฀ behind฀ international฀
accounting,฀marketing,฀and฀finance.฀Of฀
particular฀interest฀is฀the฀attention฀paid฀to฀
addressing฀ the฀ ramifications฀ related฀ to฀
working฀ capital฀ management,฀ flexible฀
budgeting,฀and฀currency฀exchange฀rates.฀
In฀ this฀ segment฀ of฀ the฀ textbook,฀ the฀

authors฀ emphasize฀ the฀ need฀ to฀ address฀
international฀ staffing฀ and฀ labor฀ issues฀
such฀as฀varying฀work฀culture฀or฀norms,฀

codetermination,฀and฀international฀labor฀
unions.
Finally,฀ in฀ Part฀ V,฀ the฀ authors฀ portray฀how฀managers฀address฀and฀resolve฀
social,฀environmental,฀and฀ethical฀issues฀
when฀ they฀ carry฀ out฀ daily฀ operations.฀
Of฀ particular฀ interest฀ is฀ the฀ ramification฀ of฀ environmental฀ issues฀ on฀ global฀
operations,฀ such฀ as฀ greenhouse฀ gases฀
and฀hazardous฀waste,฀deforestation,฀and฀
the฀ impact฀ that฀ these฀ issues฀ have฀ on฀
a฀ multinational฀ corporation’s฀ ability฀ to฀
compete฀ in฀ markets฀ around฀ the฀ world.฀
Also฀in฀this฀segment,฀the฀authors฀recognize฀the฀emergence฀of฀a฀renewed฀interest฀in฀corporate฀social฀responsibility.฀In฀
this฀ regard,฀ they฀ propose฀ some฀ intriguing฀ strategies฀ that฀ the฀ managers฀ may฀
adopt฀ when฀ they฀ respond฀ to฀ quality฀ of฀
life฀concerns฀expressed฀by฀international฀
public฀and฀private฀agencies.
In฀Part฀VI,฀the฀authors฀conclude฀with฀
a฀list฀of฀trends฀in฀the฀foreseeable฀future฀
that฀ are฀ likely฀ to฀ affect฀ international฀
operations.฀ The฀ trends฀ include฀ the฀ rise฀

of฀China,฀international฀terrorism,฀migration,฀ and฀ environmental฀ degradation,฀
among฀ others.฀The฀ authors฀ suggest฀ that฀
the฀pace฀of฀change฀is฀expected฀to฀be฀continuous฀and฀rapid,฀resulting฀in฀the฀need฀
for฀today’s฀managers฀to฀be฀on฀the฀cutting฀
edge฀ with฀ their฀ knowledge,฀ flexible฀ in฀
their฀ decision฀ making,฀ and฀ sensitive฀ to฀
dealing฀ with฀ a฀ variety฀ of฀ labor฀ issues฀
unique฀to฀countries฀around฀the฀world.
The฀greatest฀strength฀of฀the฀textbook฀
is฀the฀use฀of฀case฀studies฀that฀enable฀the฀
reader฀ to฀ analyze฀ global฀ issues฀ in฀ the฀
context฀ of฀ a฀ very฀ competitive฀ international฀ marketplace.฀ The฀ authors฀ have฀
integrated฀ a฀ number฀ of฀ intriguing฀ case฀
studies฀ throughout฀ the฀ text.฀ They฀ analyze฀ such฀ multinational฀ organizations฀
as฀Chemtech,฀Inc.,฀Delis฀Foods฀Corporation,฀ CompuSoft฀ Systems฀ Inc.,฀ and฀
Scrinton฀ Technologies,฀ among฀ others.฀
In฀ this฀ regard,฀ the฀ authors฀ have฀ provided฀ a฀ different฀ kind฀ of฀ appendix฀ to฀

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text฀ material฀ with฀ the฀ inclusion฀ of฀ an฀
additional฀six฀intensive฀case฀studies฀that฀
encompass฀a฀variety฀of฀industries,฀such฀
as฀ Michelin฀ in฀ the฀ global฀ tire฀ industry,฀
AXA฀in฀the฀European฀insurance฀industry,฀ Ban฀ &฀ Olufsen฀ in฀ the฀ electronics฀
entertainment฀ industry,฀ and฀ Arcelor฀ in฀
the฀steel฀industry.
The฀ opportunity฀ to฀ analyze฀ a฀ variety฀of฀global฀situations฀among฀existing฀
multinationals฀ by฀ means฀ of฀ these฀ case฀
studies฀provides฀the฀business฀major฀with฀
reality฀learning.฀Also,฀the฀bibliographies฀
at฀ the฀ end฀ of฀ each฀ chapter฀ assist฀ students฀in฀conducting฀additional฀research฀
as฀ they฀ attempt฀ to฀ make฀ decisions฀
about฀ how฀ to฀ become฀ effective฀ managers฀ themselves฀ in฀ the฀ future.฀ Another฀
noteworthy฀dimension฀of฀the฀text฀is฀the฀฀
intensive฀list฀of฀discussion฀questions฀at฀
the฀end฀of฀each฀chapter.฀The฀lists฀enable฀
the฀faculty฀to฀use฀an฀indirect฀method฀of฀
teaching฀ to฀ bring฀ the฀ students฀ into฀ the฀
learning฀process.


Although฀the฀authors฀rely฀on฀the฀case฀
study฀ format฀ to฀ apply฀ the฀ text฀ content,฀
it฀would฀have฀been฀more฀helpful฀if฀they฀
had฀used฀examples฀of฀more฀current฀multinational฀ organizations฀ via฀ access฀ to฀
the฀ Internet.฀ The฀ richness฀ of฀ the฀ Internet฀affords฀the฀reader฀an฀opportunity฀to฀
get฀ involved฀ with฀ an฀ updated฀ version฀
of฀ reality฀ learning฀ by฀ studying฀ current฀
events฀as฀today’s฀multinationals฀attempt฀
to฀cope฀with฀changing฀markets.฀An฀analysis฀of฀how฀managers฀in฀companies฀such฀
as฀Pepsi,฀Toyota,฀Dupont,฀and฀Intel฀have฀
come฀ up฀ with฀ innovative฀ strategies฀ to฀
address฀ international฀ marketing฀ issues฀
would฀ provide฀ the฀ reader฀ with฀ greater฀
insight฀ to฀ how฀ current฀ leaders฀ actually฀
change฀ the฀ work฀ culture฀ of฀ their฀ organizations฀in฀an฀effort฀to฀gain฀a฀competitive฀ advantage.฀ Such฀ a฀ strategy฀ would฀
also฀assist฀the฀authors฀in฀matching฀their฀
content฀ to฀ current฀ situations,฀ adding฀ a฀
significant฀degree฀of฀credibility฀to฀their฀
textbook.


In฀conclusion,฀the฀textbook฀provides฀a฀
useful฀ introductory฀ purpose฀ of฀ expanding฀the฀perspective฀of฀business฀majors฀as฀
they฀ prepare฀ to฀ enter฀ the฀ very฀ complex฀
role฀as฀a฀manager฀of฀international฀operations.฀The฀textbook฀is฀designed฀for฀a฀traditional฀semester฀course฀at฀the฀university฀
level.฀ In฀ my฀ view,฀ the฀ authors฀ have฀ put฀
together฀ a฀ thought-provoking฀ approach฀
to฀ the฀ study฀ of฀ international฀ business฀
by฀guiding฀the฀reader฀through฀the฀decision-making฀ process฀ that฀ is฀ similar฀ to฀
what฀may฀be฀required฀in฀actual฀practice.฀
If฀ not฀ adopted฀ as฀ a฀ course฀ textbook,฀ it฀
would฀be฀a฀valuable฀addition฀to฀a฀list฀of฀
readings฀required฀for฀students฀interested฀
in฀ learning฀ how฀ to฀ become฀ an฀ effective฀
manager฀in฀the฀framework฀of฀an฀international฀marketplace.
James฀L.฀Morrison
University฀of฀Delaware
Newark,฀DE
Copyright฀©฀2007฀Heldref฀Publications


฀฀฀฀฀฀฀฀฀฀฀




May/June฀2007฀

301

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Journal
of

E ducation
B usiness

for

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Scope฀of฀JEB

The฀JOURNAL฀OF฀EDUCATION฀FOR฀฀
BUSINESS฀features฀original฀basic฀and฀applied฀
research฀articles฀in฀accounting,฀communications,฀
economics,฀finance,฀information฀systems,฀information฀technology,฀management,฀management฀information฀systems฀(MIS),฀marketing,฀and฀emerging฀
disciplines.฀Articles฀are฀selected฀through฀a฀blind฀
peer-review฀process.฀
The฀journal฀entertains฀articles฀that฀deal฀with฀significant฀trends฀and฀issues฀affecting฀education฀for฀

business;฀curriculum฀development฀and฀evaluation฀of฀
educational฀programs฀in฀traditional฀and฀nontraditional฀settings;฀the฀process฀of฀instruction฀in฀accounting฀
and฀finance,฀business฀fundamentals฀(math,฀law,฀economics,฀communications,฀organization),฀consumer฀
economics,฀management,฀marketing,฀microcomputers,฀and฀office฀systems฀(office฀support฀staff฀training,฀
information฀processing).฀Articles฀review฀and฀report฀
on฀successful฀innovations฀and฀practice,฀propose฀
theoretical฀formulations,฀or฀advocate฀positions฀on฀
important฀and฀controversial฀issues.฀

Instructions฀to฀Contributors
Contributors฀should฀submit฀a฀blinded฀copy฀of฀their฀
manuscript฀to฀http://mc.manuscriptcentral.com/฀
heldref/jebs
Include฀the฀names฀and฀contact฀information฀for฀all฀
authors฀in฀a฀separate฀cover฀letter;฀this฀file฀should฀be฀
submitted฀in฀the฀space฀provided฀for฀cover฀letters฀or฀
attached฀as฀a฀separate฀file฀designated฀“not฀for฀review.”฀฀
Authors฀should฀provide฀up฀to฀five฀keywords฀for฀
indexing฀(except฀for฀book฀reviews)฀and฀adhere฀to฀the฀
Publication฀Manual,฀5th฀ed.,฀American฀Psychological฀Association,฀Washington,฀DC,฀2001,฀for฀style฀
guidelines฀in฀the฀preparation฀of฀manuscripts.
Once฀received,฀manuscripts฀are฀reviewed฀by฀a฀consulting฀editor฀and฀one฀of฀the฀executive฀editors.฀The฀
review฀process฀takes฀approximately฀three฀months.฀฀
Authors฀of฀accepted฀manuscripts฀receive฀two฀complimentary฀copies฀of฀the฀issue฀in฀which฀their฀article฀
or฀review฀appears฀and฀permission฀to฀reproduce฀additional฀copies฀of฀that฀article฀or฀review.

Regular฀Manuscripts
Regular฀manuscripts฀should฀normally฀not฀exceed฀
4,000฀words,฀should฀not฀be฀simultaneously฀submitted฀elsewhere,฀and฀should฀not฀have฀been฀previously฀published.฀If฀data฀have฀been฀used฀in฀a฀prior฀
study,฀authors฀must฀indicate฀that฀the฀new฀study฀is฀
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•฀Submit฀blinded฀copies฀of฀any฀tables฀and฀figures฀as฀
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in฀accordance฀with฀the฀instructions฀given฀in฀the฀
APA’s฀Publication฀Manual฀(see฀pp.฀120–162).฀
•฀Avoid฀explanatory฀notes฀whenever฀possible฀by฀
incorporating฀their฀content฀into฀the฀text.฀For฀essential฀notes,฀identify฀them฀with฀consecutive฀superscripts฀and฀list฀them฀in฀a฀section฀entitled฀NOTES฀at฀
the฀end฀of฀the฀text.

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•฀An฀abstract฀of฀75–100฀words฀should฀be฀provided฀
on฀the฀first฀page.฀
Revisions฀not฀previously฀submitted฀on฀Manuscript฀
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revised฀document฀should฀show฀all฀changes฀(e.g.,฀in฀
Track฀Changes฀or฀a฀different฀font฀color).฀Please฀also฀
include฀a฀blinded฀copy฀of฀the฀response฀to฀the฀reviewers’฀comments,฀which฀should฀be฀submitted฀as฀a฀
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•฀Reviews฀should฀include฀the฀following฀elements:฀
scope฀of฀text฀and฀target฀market;฀level฀of฀experience฀

฀ required฀for฀the฀reader;฀type฀of฀information฀provided฀in฀the฀text;฀main฀topics฀included฀in฀the฀text;฀
a฀listing฀of฀the฀book’s฀strengths฀and฀weaknesses;฀
recommendation฀for฀its฀use.
Professional฀Perspectives
Manuscripts฀should฀address฀a฀current฀issue฀in฀the฀
professional฀business฀community฀(e.g.,฀assessment,฀
diversity,฀discrimination,฀marketing฀strategies,฀ethics฀
in฀leadership,฀accounting฀restraints,฀globalization,฀
outsourcing,฀downsizing,฀recruiting).
•฀Manuscripts฀must฀be฀between฀1500฀and฀2500฀words.
•฀Structure฀for฀submissions฀should฀include:฀an฀
overview฀of฀the฀issue฀being฀addressed;฀historical฀perspectives฀on฀the฀issue;฀current฀workplace฀
examples฀of฀the฀issue;฀potential฀outcomes฀in฀
terms฀of฀impacts฀on฀personnel,฀costs,฀legal฀matters,฀and฀other฀parameters;฀impact฀of฀proposed฀
business฀models฀on฀creativity฀and฀innovation;฀
how฀proposed฀model฀relates฀to฀trends฀in฀industry฀
or฀business฀in฀general;฀and฀recommendations฀to฀
business฀faculty฀as฀to฀what฀they฀may฀do฀to฀assist฀
in฀resolving฀the฀issue.