^GlobalBusinessEnvironments and Strategies

Managing for Global Competitive Advantage

I T H I R D E D I T I O N

EditorsJOHAN HOUGH

University of Stellenbosch

ERNST NEULANDUniversity of South Africa

AuthorsDANI VENTER

University of Pretoria

RONEL ERWEEUniversity of Southern Queensland, Australia

RlAAN DE LANGEUniversity of Pretoria

OXFORDUNIVERSITY PRESSSouthern Africa

Table of contents

About the editors and authors xxiiPreface xxiv

Part 1 The scope and dynamics of global business l

Chapter 1 Globalisation and the changing business environment 21 Introduction 22 Global business and globalisation defined 33 Types of international business 34 Trends in the internationalisation of business 45 Macro-economic determinants of international business 6

5.1 Theory of comparative advantage-comparative costbenefits in international trade 6

5.2 Technological renewal and production expertise 75.3 Theories of direct foreign investment 85.4 Multinational agreements and organisations 95.5 The trade cycle 95.6 The oligopoly model 95.7 The international transfer of resources 95.8 The balance of payments 10

6 Growth in global business and foreign investment 106.1 Growth in global business activities 116.2 Factors influencing foreign investment 12

6.2.2 Economic performance 126.2.1 Political stability 126.2.3 Attitude to investors 126.2.4 Government policy 126.2.5 Infrastructure 126.2.6 Labour issues 126.2.7 Banking and finance 126.2.8 Government bureaucracy 126.2.9 Business environment 126.2.10 Quality of life i 12

7 Internationalisation and evolution of multinationalenterprises 137.1 Strategies for international commitments in the

internationalisation process 137.2 The evolution of multinational enterprises 14

7.2.1 Phase 1: International (overseas) inquiries 147.2.2 Phase 2: Export manager 147.2.3 Phase 3: Export department and direct

overseas sales 14

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7.2.4 Phase 4: Overseas branches and subsidiaries.. 147.2.5 Phase 5: Overseas assembly 147.2.6 Phase 6: Overseas manufacturing 157.2.7 Phase 7: Integration of overseas subsidiaries.. 16

8 Summary 16

Chapter 2 Globalisation and international trade 181 Introduction 182 The modern globalisation institutions 193 International trade theories - an overview 20

3.1 Mercantilism 203.2 Absolute advantage 203.3 Comparative advantage 213.4 Heckscher-Ohlin theory 213.5 The Leontief paradox 213.6 Product life-cycle theory 213.7 New trade theory 223.8 National competitive advantage 22

3.8.1 Factor conditions 223.8.2 Demand conditions 233.8.3 Related and supporting industries 233.8.4 Organisation strategy, structure and rivalry ... 23

3.9 Concluding on international trade theories 234 Forces driving globalisation 24

4.1 Political forces 244.2 Economic forces 244.3 Social forces .'.' 244.4 Technological forces 24

5 Economic integration 245.1 Free Trade Zone 255.2 Free Trade Area 255.3 Customs Union 255.4 CommonMarket 255.5 Economic Union 255.6 Political Union 25

6 Market entry barriers 256.1 Tariff barriers 25

6.1.1 Customs duties 266.1.2 Levels of duties 266.1.3 Other forms of customs duties 26

6.2 Non-tariff barriers 276.2.1 Import and export control 286.2.2 Import licences 286.2.3 Quotas 286.2.4 Prohibitive goods 286.2.5 Restricted goods 286.2.6 Standards (quality and health) 286.2.7 Embargoes and sanctions 286.2.8 Other 29

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6.2.9 Environmental trade barriers 296.2.10 Infrastructural trade barriers 29

6.3 Concluding remarks 307 The case for government intervention 30

7.1 Protecting jobs and industries 307.2 The 'infant industry' argument 307.3 Protecting consumers 307.4 Protecting foreign exchange reserves 307.5 Trade remedies 307.6 Retaliation 307.7 National security 317.8 Food security 31

8 Infant industry 319 Trade remedies 31

9.1 Unfair trade remedies 319.1.1 Anti-dumping 319.1.2 Countervailing 31

9.2 Fair trade remedies 329.2.1 Safeguards (industrial safeguards) 329.2.2 Agricultural safeguards 329.2.3 Special safeguards (Chinese accession) 32

10 South Africa's road to globalisation 3210.1 A brief history of South Africa's globalisation 3210.2 Factors affecting South Africa's foreign trade patterns 34

10.2.1 Abundance of natural resources 3410.2.2 Degree of sophistication 3410.2.3 Emergence of service-oriented economies 3410.2.4 Economic conditions in foreign markets 3410.2.5 Size of foreign markets 3510.2.6 Traditional markets and new market

opportunities 3510.2.7 Political factors 35

10.3 Opportunities and problems facing South Africanexporters 35

11 Summary 3712 Suggested reading 38

Chapter 3 Regional economic integration and free trade agreements 401 Definitions 402 Introduction 403 The concept of economic integration 41

3.1 Analytical basis for measuring economic integration.. 413.1.1 Trade creation 423.1.2 Trade diversion 423.1.3 Assessment of the effects of trade creation and

diversion 423.2 Principle of economic integration 42

4 Forms of trade blocs 425 Major trade blocs 43

IX

5.1 Europe 445.1.1 TheEU 445.1.2 EFTA 50

5.2 The Americas 505.2.1 The North American Free Trade Agreement

(NAFTA) 505.2.2 Southern Common Market (MERCOSUR) 515.2.3 Andean Common Market : 525.2.4 Central American Common Market (CACM)... 525.2.5 Latin American Integration Association

(LAIA) 525.2.6 Caribbean Community and Common Market

(CARICOM) 535.3 Asia 53

5.3.1 South Asian Association for RegionalCo-operation (SAARC) 53

5.3.2 The Association of South East Asian Nations(ASEAN) 53

5.3.3 Asia-Pacific Economic Co-operation (APEC)... 5 45.3.4 Cairns Group 545.3.5 Gulf Co-operation Council (GCC) 555.3.6 Indian Ocean Rim Association for Regional

Co-operation 565.4 Africa ':.' 57

5.4.1 African, Caribbean and Pacific (ACP) Group... 575.4.2 Economic associations and trade agreements

in Africa .: 586 Free trade agreements...;.; 63

6.1 The EU-Egypt Free Trade Area 636.2 The EU-Mexico Free Trade Area 636.3 The EU and South Africa 64

6.3.1 The EU-SA trade relationship 646.3.2 Implications of the euro for the South African

marketplace...;. 646.3.3 Understanding the implications of the euro.... 646.3.4 Trade balance 646.3.5 Stock market 646.3.6 Currency impact 646.3.7 South African pricing policies 646.3.8 Detail and implications of the TDCA 656.3.9 TDCA implications for southern Africa and

the ACP 656.3.10 South African companies and the EU 65

7 Implications of regional trade blocs and trade agreements forSouth African businesses 667.1 Criteria for successful regional trade blocs and trade

agreements 667.2 Regional trade blocs that are South Africa's main

trading partners 667.2.1 Introduction 66

7.2.2 Importance of the EU followed by NAFTA 667.2.3 Future success 67

7.3 The role of the WTO 677.4 General implications of the formation of regional trade

blocs for South Africa 677.4.1 Some advantages and disadvantages of FTAs . 67

8 Summary 68

Part 2 Global business environments 71

Chapter 4 The international cultural environment 721 Introduction 722 The role of culture in international business 733 The meaning of 'culture' 73

3.1 Introduction 733.2 Defining 'culture' 73

3.2.1 Values 743.2.2 Attitudes 753.2.3 Beliefs 753.2.4 Norms 753.2.5 Cultural symbols, traditions, rituals and

stories 753.3 Society 753.4 Culture, society and the nation-state r 76

4 The characteristics of culture 765 The elements of culture 77

5.1 Introduction 775.2 Political philosophy 775.3 Economic philosophy 78

5.3.1 Introduction 785.3.2 Potential benefits 785.3.3 Potential costs 795.3.4 Potential risks 795.3.5 Economic systems 795.3.6 Conclusion 79

5.4 Social structure 795.4.1 Introduction 795.4.2 Individuals, families and groups 795.4.3 Social stratification 805.4.4 Conclusion 81

5.5 Religion and ethical systems 815.5.1 Introduction 815.5.2 Christianity 825.5.3 Islam 825.5.4 Hinduism 845.5.5 Buddhism 845.5.6 Confucianism 855.5.7 Conclusion 85

5.6 Language and communication 86

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5.6.1 Introduction 865.6.2 The role of language in international

business 865.6.3 Language, culture and international

business 875.7 Education 89

6 Levels of culture 906.1 Introduction 906.2 National culture 906.3 Business culture 916.4 Organisational and occupational culture 91

6.4.1 Organisational culture 916.4.2 Occupational and professional culture 92

6.5 Summary 927 Culture in the workplace 92

7.1 Introduction 927.2 Hall's 'low-context-high-context approach' 927.3 Ronen and Shenkar's 'cultural cluster' approach 937.4 Hofstede's 'cultural dimensions' 94

7.4.1 Introduction 947.4.2 Power distance 947.4.3 Individualism versus collectivism 947.4.4 Uncertainty avoidance : 947.4.5 Masculinity versus femininity 947.4.6 Time orientation 94

• 7.4.7 Implications for international management ...957.4.8 Conclusion 96

7.5 Trompenaars's 'cultural parameters' 968 Implications of culture for international business 97

8.1 Introduction 978.2 Culture and competitive advantage 978.3 Culture and business ethics 978.4 Cross-cultural literacy 988.5 Culture and entrepreneurial orientation 988.6 Conclusion 99

9 Summary 99

Chapter 5 The international political, legal and technological

environments 1021 Introduction 1022 The political environment 1023 The political system and its functions 1024 Political involvement and its impact 1035 Political risk 1046 A political spectrum 105

6.1 Democracy 1056.2 Totalitarianism 106

7 The legal environment 1077.1 Different legal systems 107

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7.2 Legal contracts 1077.3 International law 108

8 Legal environment and the impact on investmentstrategies 108

9 The technological environment 10910 Summary I l lAppendix 1 Table of independent countries: Comparativemeasures of freedom 113

Chapter 6 The international economic environment 1191 Introduction 1192 The importance of the economic environment 1193 Economic systems 121

3.1 Introduction 1213.2 A market economy 1213.3 A command economy 1223.4 A mixed economy 1233.5 Summary 123

4 Economic freedom 1244.1 The Index of Economic Freedom 1244.2 Summary 125

5 Economic development and classification of countries 1265.1 Introduction 1265.2 Levels of economic development 126

5.2.1 Introduction 1265.2.2 Measures of economic activity and purchasing

power parity 1265.2.3 Conclusion 128

5.3 Economic classification of countries 1285.3.1 Introduction 1285.3.2 Classification by the World Bank 1285.3.3 Classification according to phases of economic

development 1295.4 Summary 132

6 Macro-economic issues in international business 1326.1 Introduction 1326.2 Economic growth 132

6.2.1 Introduction 1326.2.2 The meaning of economic growth 1336.2.3 Economic growth - an international business

perspective 1346.2.4 Conclusion 136

6.3 Impact of inflation 1366.3.1 Introduction 1366.3.2 Consumer Price Index (CPI) 1376.3.3 Production Price Index (PPI) 1376.3.4 Implications of inflation for international

business 1386.3.5 Conclusion 139

6.4 Balance of payments 1396.4.1 Introduction 1396.4.2 Characteristics and composition of the

balance of payments 1396.4.3 Conclusion..' 140

6.5 External debt 1416.6 Privatisation 1426.7 Innovation and entrepreneurship 1436.8 Summary 144

7 Countries in transition to a market economy 1447.1 Introduction 1447.2 Ideological and economic dimensions of transition... 1447.3 Transition and international business 1447.4 Realities of transition to a market economy 1457.5 The role of privatisation 1467.6 Requirements for successful transition to a market

economy 1477.7 Conclusion 147

8 Summary 147Appendix 1 Balance of payments 149Appendix 2 Current account of the balance of payments 151Appendix 3 Capital movements 152

Chapter 7 The global monetary system and foreign exchange market 1531 Introduction 153

. 2 The International Monetary System 1532.1 Introduction ..' 1532.2 Development of the International Monetary System. 1542.3 The gold standard (1876-1944) 1542.4 TheBretton Woods Agreement (1944-1973) 1542.5 The floating exchange rate system (1973-2002) 1542.6 Contemporary currency arrangements 1552.7 Development of the European Monetary System and

the Economic and Monetary Union 1552.7.1 Overview 1552.7.2 The impact of the euro 1562.7.3 Conclusion 157

3 The foreign exchange market ....1573.1 Introduction 1573.2 The functioning of the foreign exchange market 1573.3 The foreign exchange market - structure and

participants 1584 Foreign exchange markets and rates 158

4.1 Introduction 1584.2 Concepts in foreign exchange 1594.3 Currency swaps 162

4.3.1 Introduction 1624.3.2 A pound sterling (f) transaction 1624.3.3 Conclusion 162

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4.4 Cross-rates and arbitrage 1624.5 Summary 164

5 Exchange rate determination 1645.1 Introduction 1645.2 Exchange rate determinants 1645.3 Exchange rates and price levels 164

5.3.1 The law of one price 1645.3.2 Purchasing power parity 164

5.4 Exchange rates, interest rates and inflation rates 1655.4.1 The Fisher effect 1655.4.2 The international Fisher effect 166

5.5 Market effects and investor behaviour 1666 Exchange rate forecasting 167

6.1 Market efficiency and exchange rate forecasting 1676.2 Approaches to exchange rate forecasting 1676.3 Summary 167

7 International capital markets 1687.1 Introduction 1687.2 Scope, structure and functions of international

capital markets 1687.3 The eurocurrency market 1697.4 The international bond market 1707.5 The international equity market 1707.6 Conclusion 170

8 Summary 170

Part 3 Global leadership, strategies and operations 173

Chapter 8 International management and leadership 1741 Introduction 1742 International management and leadership 175

2.1 Introduction 1752.2 Basic concepts 175

2.2.1 Introduction 1752.2.2 International management 1752.2.3 International management and leadership... 17 52.2.4 Enterprise, firm, company and corporation... 1762.2.5 Affiliates and subsidiaries 1762.2.6 International, multi-domestic, global and

transnational 1762.2.7 International, global and worldwide 176

2.3 The environment of international management 1772.3.1 Environments and management 1772.3.2 Risk in the international environment 1782.3.3 Conclusion 179

2.4 Managing in the 21st century 1792.4.1 A cautionary note - the myth of the generic

organisation and manager 1812.5 Towards cross-cultural leadership 183

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2.5.1 Introduction 1832.5.2 Differences in the meaning of leadership

across cultures 1832.5.3 The extent to which the values of leaders

may vary across cultures 1832.5.4 Attributes and skills in cross-cultural

leadership 1852.5.5 Leadership behaviour and styles in the

international context 1882.5.6 Conclusion 189

3 The need for a global mindset 1903.1 Overview and definition of 'global mindset' 1903.2 Traditional and global mindsets 1913.3 Global mindsets and personal characteristics 191

3.3.1 Introduction 1913.3.2 Knowledgeable 1923.3.3 Analytical 1923.3.4 Strategic 1923.3.5 Flexible 1923.3.6 Sensitive 1923.3.7 Open 1923.3.8 Conclusion 192

4 Developing global competencies 1934.1 Introduction ~. 1934.2 Competencies and characteristics 193

4.2.1 Introduction 1934.2.2 Managing competitiveness 1944.2.3 Managing complexity 1944.2.4 Managing alignment 1944.2.5 Managing change 1954.2.6 Managing teams 1954.2.7 Managing learning 1954.2.8 Emotional intelligence 196

4.3 Mindset and executive traits 1964.4 Mindset and cross-cultural global leadership 1974.5 Summary 198

5 Focus on training efforts 1995.1 Introduction 1995.2 Training for different types of global operations 199

6 Socialising the new breed of global managers inmultinational enterprises 200

7 Summary 200

Chapter 9 Global competitive strategies 2051 Introduction 2052 Globalisation: The context of international business

strategy 2053 The global business environment 2064 The industry environment 207

5 Global competitive advantage 2095.1 National competitive advantage 210

5.1.1 Factor conditions 2105.1.2 Demand conditions 2105.1.3 Related and supporting industries 2105.1.4 Firm strategy, structure and rivalry 210

5.2 Competitive advantage at firm level 2115.3 Summary 211

6 International competitive strategies 2116.1 Strategic orientation of global firms 2116.2 Competitive advantage and strategy 2126.3 Pressures for cost reduction and local

responsiveness 2126.4 Strategies for international business 213

6.4.1 International strategy 2136.4.2 Multidomestic or localisation strategy 2146.4.3 Global strategy 2146.4.4 Transnational strategy 214

6.5 Summary 2157 Strategies for entering foreign markets 215

7.1 Foreign market entry modes 2157.1.1 Exporting 2157.1.2 Turnkey projects 2167.1.3 Licensing .....2167.1.4 Franchising 2177.1.5 Strategic alliances and j oint ventures 2177.1.6 Joint ventures ; 2177.1.7 Wholly owned subsidiaries 217

7.2 Selecting an optimal entry mode 2187.3 Summary 218

8 International strategic management 2188.1 Developing an international strategic management

framework 2188.2 Summary 220

9 Summary 220

Chapter 10 Strategic international human resource management 2231 Introduction 2232 The SIHRM model 224

2.1 Debates about converging and diverging practices .... 2 2 62.1.1 Examples of factors affecting HR practices in

regions 2263 Expatriate selection 227

3.1 Staffing policies 2273.1.1 The ethnocentric approach 2273.1.2 The polycentric approach 2273.1.3 The regional approach 2283.1.4 The geocentric approach 228

3.2 Expatriate sources and human resource planning .... 2283.3 Selection and preparation 229

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3.4 Dual-career couples 2313.5 Hiring HCNs and TCNs 2323.6 Compliance with local laws 232

4 Training, management development, and career planning. 2334.1 Training of expatriates 2334.2 Cross-cultural training 2334.3 Career management: A South African example 2354.4 Women in international management 236

5 Performance management, international compensation andbenefits 2385.1 Performance evaluation 2385.2 International compensation and benefits 2395.3 Approaches to compensation for expatriates 240

5.3.1 Negotiation 2405.3.2 Balance sheet approach 240

5.4 Cost factors 2405.5 Designing a compensation strategy for

multinationals 2416 Summary 241

Chapter 11 Global marketing strategy ; 2451 Introduction 2452 Globalisation of markets 2463 The strategic importance of global marketing 2474 The environment and cultural dimensions of international

marketing 2484.1 The environment of international marketing 2484.2 Cultural dimensions of international marketing 252

5 The organisation and structure of internationalmarketing 254

6 International market assessment 2556.1 Initial screening: Basic need and potential 2556.2 Second screening: Financial and economic

conditions 2556.2.1 Market size 2566.2.2 Market intensity 2566.2.3 Market growth 256

6.3 Third screening: Political and legal forces 2566.4 Fourth screening: Socio-cultural forces 2576.5 Fifth screening: Competitive environment 2576.6 Final selection 257

7 Market entry strategies 2577.1 Overview 2577.2 Alternative market entry modes 258

7.2.1 Exporting 2597.2.2 Turnkey projects 2597.2.3 Licensing 2607.2.4 Franchising 2607.2.5 Joint ventures 261

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7.2.6 Wholly-owned subsidiary 2617.3 Selecting a market entry mode 262

7.3.1 Core competencies and entry mode 2637.3.2 Pressures for cost reductions and entry

mode 2648 International marketing strategy 264

8.1 The marketing mix and strategies for internationalfirms 2648.1.1 Geographical market expansion strategies.... 2 6 58.1.2 Generic strategies 2658.1.3 Corporate and generic strategy and marketing

mix relationships 2658.2 International product strategy 267

8.2.1 The core product 2678.2.2 The actual product 2678.2.3 The augmented product 267

8.3 International distribution strategy 2708.3.1 Logistics logic 271

8.4 International promotion and communicationsstrategy 2738.4.1 Barriers to effective international

communication 2748.4.2 Push versus pull strategies in

communication .2758.4.3 Global advertising 276

8.5 International pricing strategy 2768.5.1 Standard price policy .....2768.5.2 Price discrimination 2778.5.3 Strategic pricing 278

8.6 Managing the international marketing mix 2798.6.1 Vertical structure 2798.6.2 Horizontal structure 280

9 Summary 280

Chapter 12 International financial management and strategy 2831 Introduction 2832 Activities and scope of international financial

management 2843 The goal of international financial management 2854 International working capital and global money

management 2864.1 Introduction 2864.2 Global money management 287

4.2.1 Introduction 2874.2.2 Minimising cash balances 2874.2.3 Reducing transaction costs 2874.2.4 Centralising depositories 2884.2.5 Making optimal use of internal fu nds 2884.2.6 Positioning funds optimally 289

5 Foreign exchange risk management 2945.1 Introduction 2945.2 Types of foreign exchange exposure 294

5.2.1 Introduction 2945.2.2 Transaction exposure 2955.2.3 Translation exposure 2955.2.4 Economic exposure 296

5.3 Strategies and tactics for managing foreignexchange risk 2975.3.1 Managing transaction and translation

exposure 2975.3.2 Forward exchange contracts 2975.3.3 Reducing economic exposure 299

5.4 Policy guidelines for managing foreign exchangerisk 299

6 International investment analysis and capital budgeting.... 3006.1 International investment 3006.2 Capital budgeting 300

6.2.1 Introduction 3006.2.2 Parent and project cash flows 3016.2.3 Adjusting for risk in capital budgeting 3026.2.4 Approaches to risk adjustment 3046.2.5 Capital budgeting application 305

6.3 Summary '.-. 3087 International financing decisions 308

7.1 Introduction 3087.2 Sources of funds 308

7.2.1 Internal sources of funds 3087.2.2 External sources of funds 310

7.3 Financial structure and cost of capital 3118 Financing international trade 311

8.1 International trade relationships 3118.2 The trade dilemma 3128.3 Export and import financing 312

8.3.1 Documentation in international trade 3128.3.2 Typical international trade transactions 313

9 Summary 314

Part 4 Economic development and growth imperatives 317

Chapter 13 Global collaboration and strategic alliances 3181 Introduction and global co-operation 3182 Modes of entry into foreign markets 3193 Defining'strategic alliances' 3194 The importance of strategic alliances in South Africa 3215 Strategic alliances profile of South African companies 3216 Strategic alliance linkages by South African companies 3227 Motivations for entering into strategic alliances 3238 The success of strategic alliances 3249 Factors to consider when forming strategic alliances 324

10 Summary 325

Chapter 14 Economic and social development initiatives for South Africa andAfrica 328

1 Definitions of terminology 3282 The potential of the African continent ; 3293 Statistics of the African continent 329

3.1 Life expectancy 3293.2 Unemployment 3293.3 Backlog in social services 330

4 Causes of economic marginalisation of the Africancontinent 3304.1 Slavery and colonialism 3304.2 Attrition caused by poverty 3304.3 Rural-urban resettlement 3314.4 The reduction in agricultural production 3314.5 Redistribution of land 331

5 Critical review of the outcome of donor aid to Africa 3325.1 Failure of the Development Merchant System

(DMS) 3325.2 The increasing trend of globalisation 3325.3 Africa's economic marginalisation 3335.4 An African development crisis 333

6 Previous initiatives to introduce economic revival to Africaneconomies 3336.1 Previous external aid interventions by developed

countries 3336.2 Reasons for the failure of previous African rescue

plans 3347 Recent and current initiatives for Africa's socio-economic

development 3347.1 The Cotonou Agreement 334

7.1.1 Background to the Cotonou Agreement 3357.1.2 The position of South Africa in terms of the

Cotonou Agreement 3357.1.3 Poverty alleviation: Aims and objectives of

the Cotonou Agreement 3357.1.4 Summary of salient points of the Cotonou

Agreement 3357.2 Regional economic integration 336

7.2.1 Regional Economic Communities (RECS) 3367.2.2 Economic Partnership Agreements (EPAs).... 3 3 67.2.3 Difficulty of achieving regional economic

integration to enable EPAs 3377.3 The NEPAD strategy 337

7.3.1 The socio-economic blueprint of NEPAD 3377.3.2 Stumbling blocks in the way of the NEPAD

plan of action 3387.3.3 Economic objectives of the NEPAD strategy ..338

7.3.4 Social objectives of the NEPAD strategy 3397.3.5 Requirements for Implementing the NEPAD

strategy 3408 Review of development initiatives for South Africa 340

8.1 Impact of regional trade blocs on the South Africaneconomy 341

8.2 EU-SA Relations 3418.2.1 Value of the TDCA for the South African

economy 3418.2.2 Nature of EU development aid for

South Africa 3428.2.3 Application of EU development aid in support

of micro-economic reform in South Africa.... 3428.2.4 Application of EU development aid

programmes in support of macro-economicreform in South Africa 343

8.2.5 The EU and the South African businesscommunity 343

9 Developing regional economic integration in SouthernAfrica 3449.1 The preferred form of regional integration 3449.2 The southern African regional integration

conundrum: SADC and COMESA 3449.3 The impact of EPAs on southern Africa 3459.4 Implications of the TDCA for the southern African

region 34510 Future African economic growth : 34611 Summary and conclusions 346

Case studies 3511 Boeing versus Airbus 3532 Starbucks'FDI 3603 MTN's Iranian Adventure 3634 Diebold 3665 Nokia and Siemens: Creating a telecomalliance 369

Index 378