International Business, 2nd Edition

S. Tamer Cavusgil all

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International Business, 2nd Edition

By S. Tamer Cavusgil, Gary Knight, John R. Riesenberger, Hussain G. Rammal, Elizabeth L. Rose
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International Business 2nd Australasian edition: the New Realities is a rigorous resource which prepares future managers to operate successfully in multinational settings.

Case studies from a wide variety of markets relevant to Australasian business, including ASEAN countries as well as China, India, Japan, South Korea, Pakistan, Europe and the Middle East, provide a real-world perspective to theories and examine the latest trends in international business.

The second edition of International Business features 10 new in-depth case studies specially created for this edition.

For undergraduate students majoring in international business or post-graduate courses in international business.


Authors Cavusgil and Knight won the 2014 JIBS Decade Award (Journal of International Business Studies) for their 2004 JIBS article “Innovation, Organizational Capabilities, and the Born-Global Firm”. JIBS is the leading academic journal in International Business and gives the Decade Award to the article that has most impacted international business research, in the decade following its publication.

S. Tamer Cavusgil
Georgia State University, Fuller E. Callaway Professorial Chair Executive Director, Center for International Business Education and Research, J. Mack Robinson College of Business Professor Cavusgil has been mentoring students, executives and educators in international business for the past three decades. A native of Turkey, Professor Cavusgil’s professional work has taken him to numerous other emerging markets.
Professor Cavusgil has authored more than 190 refereed journal articles and three dozen books, including Doing Business in the Emerging Markets (Sage). His work is among the most cited contributions in international business. He is the founding editor of the Journal of International Marketing and Advances in International Marketing. He serves on the editorial review boards of professional journals.
Professor Cavusgil is an elected Fellow of the Academy of International Business, a distinction earned by a select group of intellectual leaders in international business. He also served as Vice President of the AIB, and on the Board of Directors of the American Marketing Association. Michigan State University bestowed him with its highest recognition for contributions to the international mission: the Ralph H. Smuckler Award for Advancing International Studies. He was named International Trade Educator of the Year in 1996 by the National Association of Small Business International Trade Educators (NASBITE). At Michigan State University, he also earned the distinction of University Distinguished Faculty, the highest award given to a faculty member. In 2007 he was named an Honorary Fellow of the Sidney Sussex College at the University of Cambridge.
Professor Cavusgil holds MBA and PhD degrees in business from the University of Wisconsin. Previously, he held positions at the Middle East Technical University in Turkey, University of Wisconsin-Whitewater, Bradley University and Michigan State University. He also served as Senior Fulbright Scholar to Australia and taught at Monash University and other Australian institutions. He serves as a visiting Professor at Manchester Business School and was Gianni and Joan Montezemolo Visiting Chair at the University of Cambridge in the United Kingdom.

Gary Knight
Florida State University, Associate Professor and Director of Program in International Business Professor Knight has extensive experience in international business in the private sector. In his position as Export Manager for a medium-sized enterprise, he directed the firm’s operations in Canada, Europe, Japan and Mexico, supervising the business activities of some 50 distributors in these regions. Previously, he worked for several years in Tokyo, Japan. At Florida State University, Professor Knight developed the study abroad programs in business in the United Kingdom, France, Japan and Spain, as well as FSU’s online courses in international business. He has been an invited speaker at numerous institutions worldwide. He has won several awards for research and teaching, including best teacher in the MBA program and the Hans Thorelli Best Paper Award for his article ‘Entrepreneurship and Strategy: The SME Under Globalization’. His research emphasises international business strategy, international services, emerging markets, and the internationalisation of small and medium-sized firms.Professor Knight is a member of the Academy of International Business. He has authored six books and more than 100 refereed articles in academic journals and
conference proceedings, including Journal of International Business Studies, Journal of World Business, International Executive and Management International Review. Recently, he was ranked one of the top 15 most prolific scholars in the United States, and one of the top 30 worldwide, in the six leading international business journals. He is on the editorial review boards of several international journals. The US House of Representatives’ Committee on Small Business invited Professor Knight to provide expert testimony on international business topics. Professor Knight earned his MBA at the University of Washington and PhD at
Michigan State University, both in international business. Earlier degrees were in Finance and Modern Languages. He also attended the University of Paris in France and Sophia University in Japan and is fluent in French, Japanese and Spanish.

John R. Riesenberger

Thunderbird School of Global Management, Clinical Professor of Executive Development, Corporate Learning Group Mr Riesenberger’s international business career spans three decades in the global pharmaceutical industry. He has conducted business transactions in 21 countries. His passion is to help students develop the managerial skills frequently required of new graduates entering careers in international business. Currently, Mr Riesenberger is the President of Consilium Partners, Inc., a pharmaceutical consulting firm with clients in pharmaceutical, biotechnology and pharmaceutical agency firms.
He worked for 30 years with Pharmacia & Upjohn and The Upjohn Company as a senior executive. His experience covered a diverse range of divisional, geographical and functional accountabilities. His most recent position was Vice President, Global Business Management. Mr Riesenberger also served as Corporate Vice President and Chief Commercialisation Officer for a biotechnology firm and as the Executive Vice President
of a pharmaceutical science agency. Mr Riesenberger served as a member of the Global Advisory Board of the American Marketing Association. He serves as an Executive in Residence at the Michigan State
University Center for International Business Education and Research. He served on the Editorial Review Board of The Journal of International Marketing. He served as Chairman, Industry Advisory Board, ‘Value of Marketing Program’, SEI Center for the Advanced Studies in Management, The Wharton School of the University of Pennsylvania. He is the former Chairman of the Pharmaceutical Manufacturing Association Marketing Practices Committee. John is the co-author, with Robert T. Moran, of The Global Challenge: Building the New Worldwide Enterprise (McGraw-Hill, London). Mr Riesenberger holds a Bachelor of Science degree in Economics-Business and an MBA in Management from Hofstra University. He attended the Harvard Business School’s International Senior Management Program.

Hussain G. Rammal (BCom, MBA, PhD) University of South Australia is a senior lecturer in International Business at the University of South Australia. He previously held a position at the University of Adelaide, and was a visiting researcher at the University of Aberdeen Business School in 2008 and at Aalto University in Finland in 2012. Hussain is the area editor of the Journal of Asia Business Studies, a Fellow of the Financial Services Institute of Australia and a Certified Professional Manager (Australian Institute of Management). He chaired the annual Australia and New Zealand International Business Academy (ANZIBA) conference held in Adelaide in 2012, and was Track Chair for the annual Academy of International Business (AIB) conference held in Istanbul, Turkey in 2013. His research interests include governance issues in multinational corporations (MNCs), trade in services, international business negotiations and the interest-free Islamic financial system. Hussain is part of a team of Chief Investigators who were awarded an Australian Research Council (ARC) grant to explore trade relations between Australia and the European Union. His research has been published in many internationally recognised journals, including the International Business Review, the European Journal of Finance, the Accounting, Auditing & Accountability Journal and Management Decision.

Elizabeth L. Rose, University of Otago
Elizabeth Rose is Professor of Management and Associate Dean—International at the Otago Business School. Prior to joining the University of Otago in 2013, Beth was Professor of International Business at the Aalto University School of Business (formerly known as Helsinki School of Economics) in Finland, having previously held academic appointments in both the United States (University of Southern California) and New Zealand (University of Auckland and Victoria University of Wellington). She is also Visiting Professor of International Business at Aalto University. Beth holds a BSE (Civil Engineering) from Princeton University and an MSE (Civil Engineering), an AM (Statistics) and a PhD (Business Administration, emphasis in Statistics and Management Science) from the University of Michigan. A specialist in International Business, with a focus on how firms internationalise and compete with each other on a global scale, Beth’s research has been published in a variety of top-tier international journals, including the Journal of International Business Studies, the Management International Review and the Strategic Management Journal. Her research productivity has been recognised with appointments to the editorial review boards of some major journals (including the Journal of International Business Studies, Management International Review and Thunderbird International Review), and to committees charged with selecting the year’s best doctoral research for both the Academy of International Business and the International Management Division of the Academy of Management. She is also a Senior Editor for the Asia-Pacific Journal of Management. Beth is currently a member of the Academy of International Business (AIB) Executive Board as Vice President, where she works with AIB chapters around the world; she is also Chair of both the Strategic Management Society’s Global Strategy Interest Group and Academy of Management International Management Division’s Research Committee. Beth is the founding Chair of the Australia and New Zealand Chapter of the AIB, and past President of both the Australia and New Zealand International Business Academy (ANZIBA) and the Association of Japanese Business Studies (AJBS).

  • Focus on high-growth, high-potential emerging markets particularly ASEAN countries, which have sprung into the forefront of cross-border business with rapid industrialisation, privatisation, and modernisation. Not just China and India but also many ASEAN countries like Malaysia and Singapore.
  • Detailed analysis of challenging situations, such as Islamic banking practices and doing business in India.
  • Balanced coverage of differing types of international businesses, including trade in services and various modes of supply.
  • Multinational enterprises (MNEs), small and medium-sized enterprises (SMEs) and born globals are introduced in Chapter 1 and revisited throughout the book. For example:
  • In-depth coverage of the importance of culture in international business negotiations, including Hofstede’s new 6th dimension.
  • Communicate the importance of ethics, with a dedicated chapter on Ethics and Corporate Social Responsibility (CSR).
  • Discuss issues such as ethical practices and values, fostering economic development through profitable projects, and the creation of more equitable working environments for foreign employees.
  • Global Trend feature in each chapter profiles a business that demonstrates an important new development in international business.
  • Extensive chapter closing cases. Each case is designed specifically to address the learning objectives in the chapter.
  • Case Questions accompany each case for assignment as homework. Class discussion helps students sharpen their analytical and decision-making skills by applying what they have learned in the chapter to a situation faced by a real-world manager.
  • 3 types of End-of-Chapter exercises at the end of each chapter ( Research Online, Apply Your Understanding, Test Your Comprehension) encourage students to reflect on and apply the theory.
  • Maps to highlight location. In today’s globalised world, it is more important than ever for students to understand world geography.
  • The maps included in this text are large, easy to read, and colourful, making it easier for students to visualise the concepts presented in each chapter.
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Table of contents
PART 1 Foundation concepts 
1 Introduction: What is international business? 
2 Globalisation of markets and the internationalisation of the firm
3 Organisational participants that make international business happen
4 The cultural environment of international business
PART 2 The environment of international business
5 Ethics and international business
6 Theories of international trade and investment
7 Political and legal systems in national environments
8 Government intervention in international business
9 Regional economic integration
10 Understanding emerging markets
11 The international monetary and financial environment
PART 3 Strategy and opportunity assessment
12 Strategy and organisation in the international firm
13 Global market opportunity assessment
PART 4 Entering and operating in international markets
14 Exporting and countertrade
15 Foreign direct investment and collaborative ventures
16 Licensing, franchising and other contractual strategies
17 Global sourcing
PART 5 Functional area excellence
18 Marketing in the global firm
19 Human resource management in the global firm
20 Financial management and accounting in the global firm