This book presents “the best of 2016” about the core issues of international business, explained and analyzed within 750 words. It is hardly possible to read everything and be informed about what is happening in this world. This compilation of articles and editorials by Professor Czinkota, which were published in news media worldwide, contains thoughtful insight into key dimensions of international business and trade. The vast array of themes—ranging from terrorism to business strategies in developing countries—reflect how international business reaches every corner of our world today. This volume makes much of this complexity more accessible by presenting the topics, its analysis and controversies, and possible new directions in a few pages—just enough for bed time reading so that when you wake up, you will be the smartest person in the room.
Only the first two articles introducing the sections are longer, since they set the stage for everything subsequent. Normally people expect medicine to taste bad. Insofar one might think of this first longer article; however, the article is fun to read and gives a general overview which will make you understand future issues.
When I met Prof. Michael Czinkota in 2003, it had been less than 2 years since I had the privilege to establish the Liechtenstein Embassy in Washington. He immediately was very generous in offering to share his knowledge and experience. Since the field of economics is not my expertise, I was immensely grateful for his support in not only raising the profile of the Embassy but also helping me become acquainted with the many nuances and layers of the U.S. economy and its global impact. Since Prof. Czinkota was born and raised in Germany and was partly educated in an Austrian school very close to Liechtenstein, he is familiar with my country, with its history, its economic system as well as the trans-Atlantic cultural differences, therefore able to understand how the U.S. economy is viewed even from the perspective of a small country. Professor Czinkota further broadened his engagement with my country by teaching at the University of Liechtenstein.
We are recruiting a planned research group specifically interested in international marketing and strategy under Prof. Michael Czinkota’s mentorship. The group is based both at Georgetown University in Washington, D.C and the University of Kent in Canterbury, U.K.. The group conducts and supports new research in international marketing, and examines global shifts that are affecting business, policy, and daily life. Please sign up here if you would like to participate in and communicate with our work. We look forward to exchanging thoughts and working with you.
Picture Source: ChinaDaily- Cracks appear in the Great Firewall of China
“God created the world, the rest was made in China,” sings Lourd de Veyra. The concern about the Asian factory has lingered for decades. Overlooked has been its gradual strategic transformation from imitator to integrator, or even innovator.
Will China overtake the U.S. and become the new No.1 economy of the world? This anxiety seems as misplaced as earlier forecasts such as Japan’s economy surpassing the U.S. by 2000.
Product cycle theory shows how specific products were first produced and exported from one country but through product and competitive evolution shifted their location of production and export to other countries over time. Figure 3.4 illustrates the trade patterns that Vernon visualized as resulting from the maturing stages of a specific product cycle. As the product and the market for the product mature and change, the countries of its production and export shift.
The product is initially designed and manufactured in the United States. In its early stages (from time t0 to t1), the United States is the only country producing and consuming the product. Production is highly capital-intensive and skilled-labor intensive at this time. At time t1, the United States begins exporting the product to other advanced countries, as Vernon classified them. These countries possess the income to purchase the product in its still new-product stage, in which it was relatively high priced. These other advanced countries also commerce their own production at time t1 but continue to be net importers. A few exports, however, do find their way to the less-developed countries at this time as well.