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a result of global changes,

mentality, recognizing that changes

managers are rapidly adjusting to a global

in Europe will realign our major trading part-

hers in 1992, changes in China will create new opportunities and competitors in

the Pacific Rim, and changes in the Soviet Union may lead to an era of economic

cooperation with Eastern bloc countries. We are beyond the age of insular nations

vying for a few select export markets, and a major objective of this text is to alert

students to global affairs. Western industries must improve productivity to remain

competitive, and managers must be prepared to do business globally.

Having spent several years in Europe and Japan, I am sensitive to Amer-

ica s tremendous national resource of innovative managers. We have an extraor-

dinary technological basis and the educated professionals capable of meeting any

challenge. I am also sensitive, however, to our impertinence as a nation caught

resting on our past success as other nations.outpace us.

I was recently "escorted" out of the People s Republic of China, only a

few days after student demonstrators had been shot in Tiananmen Square. Ar-

riving in Hong Kong, I took a quiet evening cruise on Victoria Harbor, sailing

past tall buildings with glaring neon signs that sent brilliant multicolored reflec-

tions across the harbor water. I was chatting with a Chinese colleague from Hong

Kong about international competition, and both of us were speculating on eco-

nomic changes in China, Hong Kong, and the United States. He pointed to the

commercial district of Hong Kong and asked me to pick out an American sign.

I scanned the harbor lights, finding Panasonic, Honda, Nissan, Fuji Film, Cannon,

and several dozen more signs for Japanese companies, but not one name of a

United States business appeared in lights. Then he asked rhetorically why in Hong

Kong he had to make a special request for an American beer or search catalogs

for United States products. Why, too, he wondered, were the leading Japanese

department stores in Hong Kong, yet American merchandisers were conspicu-

ously absent?

The only logical answer seemed to be that Americans were not in Hong

Kong because we chose not to be there. Certainly we have the capability to expand

into any market almost anywhere in the world, but we have a rather low profile

in comparison to the Japanese and other nations aggressive in business. 1 also

visited a half dozen other Pacific Rim countries in 1989, and my senses were

aroused to watch for American products. When I saw two Cadillac limousines

outside a large building in Bangkok, I beamed with pride: Hey! We re here! But

then I realized that the Cadillacs belonged to the United States embassy, and they

were the last American cars I saw.

When I returned to the United States to continue work on this edition, I

wanted to stress even more the important trends in global business management.

In addition to the international management chapter (Chapter 20), examples drawn

from international business enrich discussion throughout the text. Each chapter

features a Global Trends box, which takes a closer look at world-wide businesses.

The text highlights companies in Japan, Korea, Finland, the United Kingdom,

France, West Germany, Canada, Mexico, Hong Kong, the People s Republic of

China, Malaysia, Singapore, Sweden, India, Ireland, and the Middle East. Com-

mentary on United States firms operating overseas has been integrated into dis-

cussion throughout the text.

I have not lost sight of America s strengths. In the first edition, I suggested

that with Theory X, Theory Y, and Theory Z, we need a Theory A to capture the

spirit and creativity of American enterprise. Theory A would encompass our

pervasive spirit of individualism, our ability to adapt and to take entrepreneurial