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WHAT’S NEW IN THE FOURTH EDITION

The success of the first three editions of Global Business Today was based in part upon the incorporation of
leading-edge research into the text, the discussion of current events within the context of the appropriate theory,
and the use of examples, cases and statistics that were not only up-to-date but also relevant to our students to
illustrate global trends and enterprise strategy. Building on these strengths, our goals for this revised edition have
been five-fold:
1. Incorporate new insights from recent scholarly research wherever appropriate.
2. Ensure the content of the text covers all appropriate issues.
3. Ensure the text is as up-to-date and as relevant to the student cohort as possible with regard to current events,
statistics, examples and case studies.
4. Make the link between principle and practice by drawing out the implications of concepts and ideas for
international business management and operations.
5. Provide the opportunity for the students and their instructors to identify and attain the learning goals of their
international business education.

As part of the revision process, changes have been made to every chapter in the book and we have taken into
account the reviews by our peers and our students. All material and statistics are as up-to-date as possible as of
late 2015. We have added discussion on current events wherever appropriate. Examples include the Eurozone
crisis, the growth of sovereign wealth funds, the state of play at the Doha Round of trade negotiations, climate
change, the rise of emerging markets, growing multipolarity and the changing power balance in international
economic institutions and the increasing prevalence of regional economic integration, in particular free trade
agreements. In Chapter 5, the discussion of culture has been broadened by the inclusion of Ed Shein’s definition of
culture as well as the GLOBE and WVS frameworks. All opening and closing cases are either new or have been
significantly revised with updates and, in some cases, a new focus. The ‘Country Focus’ features have all been
replaced with new vignettes focusing on Australia’s top trading partners and they come with questions to assist with
class discussion. The ‘Management Focus’ features have been updated and new ones added. An ‘Emerging
Market’ box has been added to reflect the growing importance of these economies to international business. Graphs
and tables have been updated and provide useful visual snapshots of important statistics throughout all chapters.
Strategically commissioned cases by those who are experts in their fields give detailed coverage of topics within a
chapter. Our case mix includes African, Middle-Eastern, Central Asian, European and South-East Asian examples.
A continued feature of this edition is the inclusion of International Business Graduate Attributes (IBGA) in each
chapter, accompanied by applicable learning and assessment tasks. The specification of the IBGAs and tasks in
each chapter informs the students on what learning outcomes are expected and how they can demonstrate the
attainment of these outcomes. The scope of the IBGAs makes clear that what is expected from a study of
international business, and tertiary education more generally, is more than the ability to recall the correct answer to
‘what’, ‘how’ and ‘why’ questions. For the instructor and course designer, the specification of the IBGAs and
assessment tasks enables them to demonstrate where and how the IBGAs are developed and assessed. This
transparency is inherently an accountability measure, but it is also a necessary requirement for attaining external
accreditation for a course of study. IBGA matters are outlined in more detail on pages xxviii–xxx.

RUMINTHA WICKRAMASEKERA
October 2015

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TEXT AT A GLANCE

This fourth edition of Global Business Today is a pedagogically rich learning resource. The features laid out on these pages are specially designed to encourage and
enhance an understanding of the text content and the attainment of a broad scope of learning outcomes. Some of the unique features of this text include:

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ACKNOWLEDGMENTS

As with any endeavour of this type, this edition has been the result of a team effort.
We would like to acknowledge the contribution of Allan McLay (RMIT), whose ‘Country Focus’ vignettes and
discussion questions appear in each chapter of the book.
We would like to thank Jane Menzies (Deakin University), Mona Chung (Deakin University), Subramaniam
Ananthram (Curtin University) and Jeremy Seward (La Trobe University) for their detailed reviews of the material
during development.
We would like to thank our case contributors. They have added the touch of colour that comes with presenting
real-life situations:
• Makoto Kanda, Meiji Gakuin University—Elm Inc.: The globalisation of a rural company (Chapter 1)
• Jane Menzies, Deakin University—Tobacco plain-packaging laws in Australia: Health or trade issues? (Chapter
3)
• Saskia de Klerk, University of New South Wales— Debonairs Pizza: Delivering pizza with pizzazz (Chapter 5)
• Brent Burmester, University of Auckland—FIFA: Scandalous sponsorship (Chapter 8)
• Allan McLay, RMIT—Bindi Wines: Its people, products, philosophy and position in the international marketplace
(Chapter 9)
• Professor Songhua Hu, Sun Yat-sen University— The growth strategy of Haier (Chapter 10)
• Sally Zillman, Queensland University of Technology— Kosmea Australia: Taking rose hip oil to the world
(Chapter 11)
• Abas Mirzaei, Macquarie University— Corona Extra: The iconic Mexican beer that travelled the world (Chapter
12)
• Cameron Gordon, University of Canberra— Woolworths Holdings Limited (Chapter 14).

We are also indebted to our ancillary authors who have worked hard to ensure that we have a strong ancillary
package.
Numerous people deserve to be thanked for their assistance in preparing this book. First, we want to extend our
sincere thanks to all the people at McGraw-Hill who have worked with us on this project: product managers Dr
Gurdish Gill and Lyra Villafana, content developer Maryann D’Sa and senior content producer Daisy Patiag.
Rumintha is grateful to all of those who assisted him in his early work as well as his doctoral studies, and who
have fostered his fascination with and enthusiasm for learning and teaching global/international business. He is
especially indebted to Professors Norman Philp, Geoff Bamberry, Eddie Oczkowski and Gordon Boyce for their
support and encouragement. To Thomas Cronk, co-author of the first three editions, Rumintha extends his sincere
thanks for his generous support and innovative ideas in continually improving the book. He would also like to pass
on his sincere thanks to the many students and colleagues who made a major contribution to the book by providing
valuable feedback. Finally, he would like to send a very special thanks to his family for their continued support and
encouragement.

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CASE AND VIGNETTE MATRIX

PART ONE GLOBALISATION

CHAPTER 1 GLOBALISATION
OPENING CASE THE GLOBALISATION OF PRODUCTION AT BOEING
ANOTHER KICKING AWAY THE LADDER
PERSPECTIVE EVERY EXPORT IS AN IMPORT
EMERGING MARKETS INDIA’S IT SOFTWARE SECTOR
MANAGEMENT FOCUS WHO MAKES THE APPLE IPHONE?
COUNTRY FOCUS GLOBALISATION OR AMERICANISATION? (UNITED STATES)
CLOSING CASE ELM INC.: THE GLOBALISATION OF A RURAL COMPANY

PART TWO CROSS-BORDER LINKAGES: TRADE, INVESTMENT AND EXCHANGE

CHAPTER 2 THEORIES OF TRADE, INVESTMENT AND INTERNATIONALISATION
OPENING CASE BANGLADESH’S TEXTILE TRADE
EMERGING MARKETS BRAZIL’S EMBRAER
MANAGEMENT FOCUS HOLLOWING OUT THE MANUFACTURING-BASED ECONOMY
COUNTRY FOCUS TRADING ITS WAY BACK TO GROWTH (UNITED KINGDOM)
CLOSING CASE LOGITECH’S GLOBAL APPROACH

CHAPTER 3 THE POLITICAL ECONOMY OF TRADE AND INVESTMENT

OPENING CASE UNEASE OVER CHINA’S RARE EARTHS TRADE POLICIES
FREE TRADE AND EFFICIENCY VS FAIR TRADE AND JUSTICE
ANOTHER
A LICENCE TO PROFIT
PERSPECTIVE
PATENTS VERSUS PATIENTS
THE BRICS: ELECTRICAL APPLIANCES AND CONTRARY ENERGY-EFFICIENCY
EMERGING MARKETS
POLICIES
TRYING TO PICK A WINNER: GOVERNMENT SUPPORT OF THE MAGNESIUM
INDUSTRY
MANAGEMENT FOCUS
SANCTIONS, U-TURNS AND ACCUSATIONS OF MONEY LAUNDERING AT STANDARD
CHARTERED
COUNTRY FOCUS ALLIES BUILDING PATHWAYS TO ASIA (NEW ZEALAND)
CLOSING CASE TOBACCO PLAIN-PACKAGING LAWS IN AUSTRALIA: HEALTH OR TRADE ISSUES?

CHAPTER 4 FOREIGN EXCHANGE AND THE INTERNATIONAL MONETARY SYSTEM

OPENING CASE CURRENCY TROUBLE IN MALAWI
THE RISE OF DIGITAL CURRENCIES
CAN THE EURO SURVIVE?
ANOTHER
WHAT ABOUT THE STARBUCKS INDEX: A GOOD IDEA?
PERSPECTIVE
SHOULD COUNTRIES BE FREE TO SET CURRENCY POLICY?
THE GREEK SOVEREIGN DEBT CRISIS
EMERGING MARKETS CHINESE RENMINBI AS RESERVE CURRENCY: YUAN A BET?
KOREAN FIRMS' DISASTROUS KIKO HEDGES
MANAGEMENT FOCUS
IS THE INTERNATIONAL MONETARY FUND NEEDED?
COUNTRY FOCUS POWERHOUSE OF THE EUROZONE (GERMANY)
CLOSING CASE THE RISE (AND FALL) OF THE JAPANESE YEN

PART THREE COUNTRY DIFFERENCES

CHAPTER 5 DIFFERENCES IN CULTURE
OPENING CASE EBAY IN CHINA
ONLINE VIEW OF OTHER CULTURES

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ANOTHER ADAPTING TO SUIT THE LOCAL PALATE

PERSPECTIVE STICKY PROBLEMS IN CULTURE RESEARCH
USING IT TO BREAK INDIA’S CASTE SYSTEM
EMERGING MARKETS ISLAMIC BANKING IN MALAYSIA
A TALE OF TWO COUNTRIES
MANAGEMENT FOCUS DMG ENTERTAINMENT
COUNTRY FOCUS TRANSFORMING THAILAND (THAILAND)
CLOSING CASE DEBONAIRS PIZZA: DELIVERING PIZZA WITH PIZAZZ

CHAPTER 6 POLITICAL AND LEGAL ENVIRONMENTS

OPENING CASE FOREIGN DIRECT INVESTMENT IN NIGERIA
IS SELLING IN CHINA A GOOD STRATEGY?
ANOTHER
DO YOU AGREE WITH THE UNIQUE SYSTEM OF ISLAMIC BANKING?
PERSPECTIVE
HOW IMPORTANT ARE INTELLECTUAL PROPERTY RIGHTS?
DEMOCRACY IN THE ARAB WORLD: NEW REALITIES IN AN ANCIENT LAND?
EMERGING MARKETS
INDIVIDUAL RIGHTS AND FREEDOMS IN THE BRICS
DEMOCRATIC PRINCIPLES OR PROFIT: GOOGLE INC. AND THE GREAT FIREWALL OF
MANAGEMENT FOCUS CHINA
AUSTRALIA SEEKS BIGGER SLICE OF APPLE’S TAX PIE
COUNTRY FOCUS PATTERNS OF POWER AND ECONOMIC PROGRESS (CHINA)
CLOSING CASE GROWING AUTHORITARIANISM AND BUSINESS IN FIJI

CHAPTER 7 ECONOMIC ENVIRONMENT

OPENING CASE POLISH ECONOMIC RESILIENCE
DISCONNECT OF THE VIRTUAL AND THE PHYSICAL WORLDS
ANOTHER
IF WE ON EARTH WERE A COMMUNITY OF 100 PEOPLE . . .
PERSPECTIVE
A POWERFUL ‘SEN’ EXAMPLE: FROM ‘UNTOUCHABLE’ TO ENTREPRENEUR
EMERGING MARKETS THE DEVELOPMENT PERFORMANCE OF EMERGING MARKET ECONOMIES
FONTERRA AND THE CHANGING DEMAND FOR DAIRY PRODUCTS IN THE EMERGING
MANAGEMENT FOCUS
MARKETS OF ASIA
COUNTRY FOCUS AN EMERGING ECONOMIC GIANT (INDIA)
CLOSING CASE EMBRAER FLIES AS BRAZIL’S EXPORTS HIT HEADWINDS

CHAPTER 8 ETHICS AND CORPORATE RESPONSIBILITY

OPENING CASE DANGERS OF TOYS
HUMAN RIGHTS
VOLKSWAGEN’S POLLUTION SCANDAL
IS SUSTAINABILITY BAD FOR PROFITS?
ANOTHER
MODERN-DAY SLAVERY
PERSPECTIVE
ARE HUMAN RIGHTS A MORAL COMPASS?
HOW DO YOU KNOW WHAT IS REALLY HAPPENING? GIVING MEANING ACROSS
CULTURES
CORPORATE SOCIAL RESPONSIBILITY AT STORA ENSO
MANAGEMENT FOCUS JAIL TIME FOR EXECUTIVES?
PFIZER’S DRUG-TESTING STRATEGY IN NIGERIA
THE CITY-STATE BUILT ON TRADE AND GOOD CORPORATE GOVERNANCE
COUNTRY FOCUS
(SINGAPORE)
CLOSING CASE FIFA: SCANDALOUS SPONSORSHIP

CHAPTER 9 COUNTRY MARKET ANALYSIS

OPENING CASE UNIQLO GOES GLOBAL
IS COUNTERTRADE AN APPROPRIATE WAY OF TRADING TODAY?
ANOTHER
HOW TRUSTING CAN YOU BE?
PERSPECTIVE
ARE FIRST-MOVER ADVANTAGES ALWAYS A GOOD THING?
EMERGING MARKETS THE JOLLIBEE PHENOMENON—A PHILIPPINE MULTINATIONAL
EXPORTING OR LICENSING?
MANAGEMENT
SHOULD A STANDARD PROCESS BE IN PLACE FOR IMPORT LICENCES?
FOCUS
FOR WHICH PRODUCT IS AUTARKY A GOOD CHOICE FOR COUNTRIES?
COUNTRY FOCUS REMOVING BARRIERS TO TRADE (SOUTH KOREA)

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BINDI WINES: ITS PEOPLE, PRODUCTS, PHILOSOPHY AND POSITION IN THE

CLOSING CASE
INTERNATIONAL MARKETPLACE

PART FOUR COMPETING IN THE GLOBAL MARKETPLACE

CHAPTER 10 THE STRATEGY OF INTERNATIONAL BUSINESS
OPENING CASE IKEA
ANOTHER EDUCATION AS A PART OF YOUR VALUE CHAIN
PERSPECTIVE LONG-LIVED FIRMS IN JAPAN
EMERGING MARKETS PEARL RIVER PIANO COMPANY
MTV’S GLOBAL STRATEGY
MANAGEMENT
PROCTER & GAMBLE: EVOLUTION OF STRATEGY
FOCUS
CISCO SYSTEMS AND FUJITSU
COUNTRY FOCUS MAKING INROADS INTO MALAYSIA (MALAYSIA)
CLOSING CASE THE GROWTH STRATEGY OF HAIER

CHAPTER 11 ENTERING FOREIGN MARKETS

OPENING CASE INTERNATIONAL MARKET ENTRY AT STARBUCKS
EXPORTING OR LICENSING?
ANOTHER
SO, YOU THINK YOU WANT TO OWN A FRANCHISE?
PERSPECTIVE
ALDI IN AUSTRALIA
COUNTRY FOCUS OPPORTUNITIES IN A FRONTIER MARKET (VIETNAM)
THE NEED TO GO INTERNATIONAL
MANAGEMENT
AUSTRALIAN TURNTABLE COMPANY
FOCUS
TESCO’S INTERNATIONAL GROWTH STRATEGY
CLOSING CASE KOSMEA AUSTRALIA: TAKING ROSE HIP OIL TO THE WORLD

CHAPTER 12 INTERNATIONAL MARKETING AND R&D

OPENING CASE GLOBAL BRANDING OF THE AVENGERS AND IRON MAN
MARKETING FAILURES—VEGEMITE’S iSNACK 2.0
ANOTHER LOST IN TRANSLATION
PERSPECTIVE IS THE KIWIFRUIT A KIWI FRUIT?
DESTINATION AND COUNTRY BRANDING
EMERGING MARKETS UNILEVER: SELLING TO INDIA’S POOR
MANAGEMENT FOCUS IS THE GOOGLE ADVERTISING MODEL VIABLE IN THE LONG TERM?
COUNTRY FOCUS A WORLD HARDWARE HUB (TAIWAN)
CLOSING CASE CORONA EXTRA: THE ICONIC MEXICAN BEER THAT TRAVELLED THE WORLD

CHAPTER 13 INTERNATIONAL PRODUCTION, OUTSOURCING AND LOGISTICS

OPENING CASE LI & FUNG LIMITED: A FACTORY OF SORTS
CHANGING CAREER ROLES AND OPPORTUNITIES
DIFFERENT STAGE, DIFFERENT SCALE
LEAN AND GREEN AT TOYOTA
ANOTHER PERSPECTIVE
OFFSHORING LEGAL SERVICES
WEEE AND REVERSE LOGISTICS
RFID AND LIVESTOCK
EMERGING MARKETS THE ‘CHINA-PLUS-ONE’ STRATEGY
MANAGEMENT FOCUS HP SINGAPORE’S EVOLVING ROLE
COUNTRY FOCUS A CHANGING STRATEGY FOR GROWTH (JAPAN)
CLOSING CASE FMCG, SOFT DOLLARS AND LEAN SUPPLY CHAINS

CHAPTER 14 INTERNATIONAL HUMAN RESOURCE MANAGEMENT

OPENING CASE WOOLWORTHS HOLDINGS LIMITED
LINKING HR ACROSS THE GLOBE
THE PHILIPPINES’ BEST EXPORT? PEOPLE
VIRTUAL HR MOBILITY MANAGEMENT
ANOTHER PERSPECTIVE
WILL WE SEE AN INFLUX OF CHINESE WORKERS WORLDWIDE?
WOULD YOU SEND A WOMAN ON AN INTERNATIONAL ASSIGNMENT?
WHERE WOULD YOU GO TO FIND EXPAT RESOURCES?

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EMERGING MARKETS HRM CHALLENGES IN EMERGING ECONOMIES FOR EXPATRIATES

MANAGEMENT FOCUS MANAGING GLOBAL TALENT AT SHELL
COUNTRY FOCUS THE VALUE OF SKILLED HUMAN RESOURCES (INDONESIA)
CLOSING CASE MMC CHINA

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Global Business Today, 4e Page 1 of 3

INTERNATIONAL BUSINESS GRADUATE

ATTRIBUTES

While individual educational institutions and courses of study will seek to develop attributes peculiar to their own
situation, there are many generic attributes expressed in the institutional statements of learning goals. The following
concepts are common in these statements:
• Discipline Knowledge and Skill
• Critical Analysis
• Problem Solving
• Ethical Decision Making
• Communication
• Social Interaction
• Global Perspective
• Life-long Learning
• Citizenship.
It is evident that a study of international business, by its very nature, can make a significant contribution to the
development of these generic attributes.
For teaching and learning purposes (including the assessment of learning), a more operational expression of the
concepts is needed. The International Business Graduate Attributes (IBGAs) as defined below provide the
operational expression of these concepts as they apply to an international business education. The concepts listed
above have been selected as the basis of the development of the IBGAs used throughout this textbook and its
accompanying teaching and learning resources.
IBGAs need to be aligned with the learning objectives, and the learning and assessment activities of a specific
unit of study, to ensure the development of the generic attributes. Learning objectives, alone or in combination,
provide indicators of the attainment of the graduate attributes. A sample of such indicators is provided below for
each IBGA. Alignment occurs in this textbook according to the IBGA chapter matrix below. While each chapter by
way of its subject matter, learning objectives, suggested learning tasks and stimulus material potentially provides a
vehicle for developing all IBGAs, the alignment matrix recognises that certain subject matter lends itself to the
development of specific IBGAs. The matrix also acknowledges that two of the IBGAS are so generic that they can
be assigned to all chapters. These IBGAs are IBGA1: Discipline Knowledge and Skills and IBGA5: Communication.
Case analysis is used in each chapter, so IBGA2 Critical Analysis is also assigned to each chapter.

IBGA1 DISCIPLINE KNOWLEDGE AND SKILLS

Apply a coherent body of theoretical and practical knowledge and skills to understand international business.
Indicator: You can:
• explain the various methods used by governments to restrict imports
• describe the circumstances under which a firm may choose to enter a foreign market using licensing rather than
FDI
• using the table of data provided, calculate the export price in the foreign currency if the firm adopts a 100 per
cent pass-through pricing strategy.

IBGA2 CRITICAL ANALYSIS

Using a combination of insight, reason and practised skills, formulate a considered judgment on the value of data,
experiences, arguments and proposals relating to international business issues.
Indicator: You can:
• summarise the data collected from returning expatriate staff on the adequacy of their overseas allowances
• compare and contrast the public interest arguments underpinning the national government’s decision to prohibit
one but permit another foreign takeover in the Australian mining industry
• assess the viability of a business opportunity for the sale of kangaroo meat to South Korea.

IBGA3 PROBLEM SOLVING

Define problems and their causes confronting international business managers, and use a range of abilities,
approaches and resources to reach decisions and make recommendations.
Indicator: You can:
• find sources of data on foreign competitors
• outline how you would prepare yourself for a short-term work assignment to a subsidiary in a foreign country
about which you know very little
• develop strategies that enhance the opportunities and limit the threats for your business as a consequence of
Australia becoming a part of an expanded ASEAN Free Trade Area.

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IBGA4 ETHICAL DECISION MAKING

Be aware of the different value systems, including one’s own, under which an international business may operate.
Recognise and value the moral dimensions of international business decisions and actions.
Indicator: You can:
• recognise instances when the accepted rules of conduct regarding facility payments are broken
• accept responsibility for the consequences of your actions
• defend a code of practice for foreign suppliers that takes account of company profits, fairness, sustainability and
indigenous perspectives.

IBGA5 COMMUNICATION
Make connections that create meaning for others, including cross-cultural connections. Choose language, media
and formats suitable for the message and the audience.
Indicator: You can:
• debate in a public forum the effectiveness of trade sanctions to bring about changes to the policies of a foreign
government
• conduct online a job interview with a candidate who is from a non-English-speaking background and is located
offshore
• write a report for management that explains the impact on the supply chain of your company of increasing global
terrorism.

IBGA6 SOCIAL INTERACTION

Know how to get things done in groups.
Indicator: You can:
• elicit the views of others and help reach conclusions
• recognise the strength of others and build positive relations
• provide leadership within a team context by taking responsibility for organisation, planning, influencing and
negotiating.

IBGA7 GLOBAL PERSPECTIVE

Understand and respect the economic, cultural and biological diversity and interdependence of global life.
Indicator: You can:
• explain the concept of decoupling in the context of the Global Financial Crisis
• compare world economic and political systems
• assess the use of ‘food miles’ as a measure of the carbon footprint of a dairy food processor that exports to
distant foreign markets.

IBGA8 LIFE-LONG LEARNING

Maintain an intellectual interest and a critical perspective on international business issues.
Indicator: You can:
• identify what you need to learn about international business
• manage time and prioritise activities to achieve your goals
• initiate ways and means of attaining and evaluating your learning outcomes.

IBGA9 CITIZENSHIP
Engage actively with communities in ways that are sensitive to their culture and responsive to their needs.
Indicator: You can:
• organise a program of speakers for a conference for international business graduates with the theme
‘Competing with Integrity in International Business’
• represent on their behalf the point of view and interests of Indigenous landholders who are seeking to form a
strategic alliance with a foreign company to develop a tourist resort and golf course on their communal land
• identify opportunities for collaboration between suitable NGOs and mine management on projects to improve the
general and vocational education of miners and their families at a remote offshore mining site.

IBGA–CHAPTER ALIGNMENT

CHAPTER 1 2 3 4 5 6 7 8 9 10111213 14
IBGA

1: Discipline Knowledge and Skills ✓✓✓✓✓✓✓✓✓✓✓✓✓✓

2: Critical Analysis ✓✓✓✓✓✓✓✓✓✓✓✓✓✓

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3: Problem Solving ✓✓✓✓ ✓✓✓✓✓

4: Ethical Decision Making ✓✓ ✓ ✓
5: Communication ✓✓✓✓✓✓✓✓✓✓✓✓✓✓
6: Social Interaction ✓ ✓ ✓ ✓ ✓
7: Global Perspective ✓ ✓ ✓
8: Life-long Learning ✓ ✓ ✓
9: Citizenship ✓ ✓

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CONTENTS IN FULL
Cover

Title Page

Copyright

Preface

About the authors

Acknowledgments

What’s new in the fourth edition

Organisation/content

Text at a glance

Case and vignette matrix

International Business Graduate Attributes

PART ONE GLOBALISATION

CHAPTER 1 GLOBALISATION

PART TWO CROSS-BORDER LINKAGES:

TRADE, INVESTMENT AND EXCHANGE
CHAPTER 2 THEORIES OF TRADE, INVESTMENT AND
INTERNATIONALISATION

CHAPTER 3 THE POLITICAL ECONOMY OF TRADE AND INVESTMENT

CHAPTER 4 FOREIGN EXCHANGE AND THE INTERNATIONAL

MONETARY SYSTEM

PART THREE COUNTRY DIFFERENCES

CHAPTER 5 DIFFERENCES IN CULTURE

CHAPTER 6 POLITICAL AND LEGAL ENVIRONMENTS

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CHAPTER 7 ECONOMIC ENVIRONMENT

CHAPTER 8 ETHICS AND CORPORATE RESPONSIBILITY

CHAPTER 9 COUNTRY MARKET ANALYSIS

PART FOUR COMPETING IN THE GLOBAL MARKETPLACE

CHAPTER 10 THE STRATEGY OF INTERNATIONAL BUSINESS

CHAPTER 11 ENTERING FOREIGN MARKETS

CHAPTER 12 INTERNATIONAL MARKETING AND R&D

CHAPTER 13 INTERNATIONAL PRODUCTION, OUTSOURCING AND

LOGISTICS

CHAPTER 14 INTERNATIONAL HUMAN RESOURCE MANAGEMENT

Glossary
Acronyms
Countries/Capitals
Index

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*** START OF THE PROJECT GUTENBERG EBOOK THE ORIGIN OF

THOUGHT AND SPEECH ***
THE ORIGIN OF THOUGHT AND SPEECH
THE ORIGIN OF THOUGHT
AND SPEECH
BY

M. MONCALM

TRANSLATED FROM THE FRENCH

BY

G. S. WHITMARSH

“Language is the autobiography of the human mind.”

The Science of Thought (Max Müller).
“Language is our Rubicon which no brute will dare to cross.”
The Science of Language (Max Müller).

LONDON
KEGAN PAUL, TRENCH, TRÜBNER & CO., Ltd.
DRYDEN HOUSE, 43 GERRARD STREET, W.
1905
With the approval of the Author’s representative, the translator has
at times followed the exact words of Max Müller rather than the
literal translation, where the latter has differed slightly from the
former.
The thanks of the translator are due to friends who have kindly
revised the MS. and a portion of the proof sheets.
The books used by the Author in this work
are:—
Max Müller.
Introduction to the Science of Religion.
Origin and Growth of Religion.
Chips from a German Workshop.
The Science of Language.
The Science of Thought.
Natural Religion.
Physical Religion.
Anthropological Religion.
Theosophy, or Psychological Religion.
Ch. Darwin.
Origin of Species.
The Descent of Man.
Expression of the Emotions.
L. Noiré.
Der Ursprung der Sprache.
Die Lehre Kants, und der Ursprung der
Vernunft.
 CONTENTS
PAGE
Introduction 1

CHAPTER I
Hypotheses 14

CHAPTER II
Our Aryan Ancestors 41

CHAPTER III
The Philosophy of Language 51

CHAPTER IV
Animals 57

CHAPTER V
Primitive Humanity 63
The 121 Original Concepts 89

CHAPTER VI
Ancient Language 93

CHAPTER VII
Myths 99

CHAPTER VIII
Between Sleeping and Waking 118

CHAPTER IX
A Decisive Step 140
Kant’s Teaching 149
 Sensation 149
Space and Time 152
Phenomena 152
The Categories of the Understanding 153
Cause and Effect 154
Axioms 154
Metaphysics 156

CHAPTER X
The Vedic Hymns 173

CHAPTER XI
Man’s Conceptions of Religion 214
The Sacred Writings of the Hebrews 228
The Various Names of God 231
The Genius of Languages 234
Metaphor 235
The Later Name for God amongst the Hebrews 236
On the Prophets (Nābhī) 238
The Views of Spinoza 242
Obedience 246
The Law 249
The Law in the Gospel 251
Biographical Note 252
The Ideas of Plato 255
Episodial 257
An Excursion into a Country little known 258
Anthropomorphism 261
The Sacred Codes and the Codes of Laws 262

CHAPTER XII
Of Words 276

CHAPTER XIII
Observations and Reflections 286
Physics 287
Comparative Sciences 288
Concerning some Authors 291
Religion and Religions 293
Opposition 298
Abstraction, Inattention 298
Speech 300
Résumé 303
THE ORIGIN OF THOUGHT AND SPEECH

INTRODUCTION
When opening my eyes in the morning, and whilst still struggling
with an inclination to sleep, I review the day and what it will have in
store for me; but the pictures drawn are confused, and my will takes
no part in it.
For some time I have been haunted by the impression that the
mental faculties of the generality of men have not succeeded in
throwing off a species of torpor resembling that of a person hardly
awake; the supposition that this torpid condition prevents our minds
from attaining that degree of lucidity to which they have a right to
aspire, is perhaps a hallucination, yet possibly I may be right in
thinking it.
How many confused ideas traverse my brain in one day, and how
seldom those come of which I follow the thread. We know well that
injunction so often given by parents to children, and by
schoolmasters to their pupils: “Try to concentrate your attention.” It
almost seems as if that which we require of children is beyond my
powers, for I have hardly resolved to disentangle a problem of
whatever kind, when, under the form of useless, futile, inept
thoughts, obstacles heap themselves across my path. I conclude
from this that a fatal somnolence paralyses my faculties.
When a person has to be awakened who is disinclined to be
disturbed, he is violently shaken. What movement would suffice to
energise a man whose mental powers were drowsy? I do not see
anything from the outside; and a personal effort could not be looked
for, from an enervated will.
And yet I am possessed by the desire to penetrate the mystery of
my existence; I ask myself what I am, and why I am on this earth;
from the moment that I put this question to myself I feel that the
awakening may be possible for me. I know two classes of men who
never ask it; first those who do not see that there is any problem to
solve; and secondly those who are content with infantine and
superficial teaching; or more or less elaborate and learned, but
coming from one who appears to himself to be the depository of a
collection of supernaturally inspired truths. I own that I do not
belong to the first of these divisions, since I shall have no rest as
long as I am ignorant of what passes in me and around me; neither
do I belong to the second of these classes, since those who
compose it are content to believe; but faith is not knowledge, and I
am anxious to comprehend what has been discovered, known, and
established by evidence. But how shall I submit to this labour of
research, when the habitual condition of my thoughts is to wander
at will amongst my impressions, and when I am so incurably absent-
minded?
We live in an atmosphere of many and varied ideas; ideas true and
false, good and bad; they pulsate in the air we breathe; they are like
the winged antheral seeds which are lifted up by the slightest breeze
of autumn and carried afar; they are little heeded; but should it
happen that these seeds attached themselves to our garments we
should notice how strikingly the one form varied from the other.
Amongst those ideas which wander at large is this aphorism—that
we are ignorant of that of which we know not the commencement,
or in other words of that which we do not examine from the practical
point of view; he who wishes to learn how something is made,
whatever it may be, must know how to begin it. This truth has so
ancient a date that we cannot conceive of a time when it was absent
from the mind of man; only it had the common lot of all truths with
which we are so familiar that apparently there is nothing to learn
from them, and this aphorism appears at first sight to be the
ramblings which we hear but to which we do not listen.
To me it is of value, as it strengthens my conviction that the mist
which obscures my vision will not be dissipated until I have traced
certain problems to their source; I know by experience that few
phenomena are easy of explanation when their appearances only are
examined at any given moment; and close questioning fails to elicit
light, whilst ignorance prevails concerning their beginning.
How does it happen that in spite of such unfavourable
circumstances, often with no clear purpose, and with eyes half shut,
humanity can advance? For the progress is indubitable. The public
conscience has developed; and its actions make themselves felt;
civilised nations have become more humane; they understand better
than they did formerly that peace is more profitable than war;
certain social problems are being seriously discussed, and some are
on the point of solution. In the physical sciences, as well as in
mechanical arts, progress is most marked. But I see that though
imagination, observation, and a talent for invention have had much
to do with this progress, the capacity of imitation has also been a
powerful factor. When William Herschel gave up music for
astronomy, he perfected the optical instruments which were in use
at that time, and manufactured some excellent telescopes at
comparatively moderate prices, with the result that his fellow
astronomers and their successors were able to devote themselves to
the study of the heavens with greater ease and readiness; and the
discovery of Uranus was soon followed by that of a large number of
celestial bodies. Again, at one of the National Exhibitions of our time,
there was shown to all comers the model of a recently invented
apparatus for the conveyance of the wounded on battlefields; since
which, each country now produces its own design with various
improvements, and the victims of the barbarism, still lingering in
war, were benefited by these modern appliances, due entirely to the
art of imitation.
In short, progress exists, but not all along the line. As thought
travels slowly in its own domain, so mental science is behindhand. A
true idea is not mechanically reproduced, it must be tended for it to
bear fruit, but what tendance would avail, if it is only with difficulty
that we discriminate between what we know already, and what we
do not yet know, for this distinction must accompany conscious
progress.
Everything around us tends to keep us in this penumbra, which is so
favourable to inertia, ignorance, sleep. Certain groups of
philosophical ideas become condensed and systematised; in some
systems there are one or two great thoughts only. This suffices—
these systems remain, germinate and direct contemporaneous
generations as well as those of the future. It may also happen that
these same ideas invade brains little prepared to receive them, and
thus deviate from their course, err as they advance, and end by
becoming so travestied that it is no longer possible to know what
they were at their origin—a swerving movement has taken place,
which causes suffering to contemporaries, and, still more, to those
who come after. Thus the bulk increases, the bulk of truth and the
bulk of error; and this fatal expansion of the true and the false,
intertwined the one with the other, pursues its encroaching and
troublous way.
This confusion is something impersonal; it is an opaque body which
interposes itself between the truth and ourselves, and prevents us
from contemplating it; but the confusion may also arise directly from
those whose mission it is to guide us. I open a book written by some
grave thinker who, I imagine, knows his subject thoroughly, and I
begin to read in all confidence; at first I think I understand him;
then I am stopped by a word, and I wonder what meaning the
author has attached to it; a little further I come upon the same
word, which now seems invested with another signification; this
disconcerts me, and I close the book. I take another, but the same
disagreeable surprise awaits me, and I find everywhere terms whose
meaning varies to suit the convenience of the author; and what we
are to understand by these words is nowhere explained. These
defects arise probably from the fact that certain philosophers, taking
their confused opinions for new ideas, seek for words in which to
express them, and not finding them in their vocabulary, they coin
them, using terms to which no precise meaning is attached; which
terms remain more or less enigmatical to the authors themselves,
and, consequently, unintelligible to the readers; in this way does the
confusion of ideas arise and is propagated. A philosopher, I think it
was Haman, made the following very true and very alarming
statement: “Language is not only the basis of our power of thought,
but also the point from which our misunderstandings and errors
spring”; and Hobbes also says: “It is obvious that truth and
falsehood dwell only with those living creatures who have the use of
speech.”
But all that I have just said indicates merely a superficial portion of
my passing impressions; in going below the surface I find in the past
other causes for our present perturbation of mind. For centuries we
have frequented schools in order to learn to distinguish truth from
error, yet it is always a mixture of truth and error that we are taught.
What result had we attained on the eve of the twentieth century?
We are still asking ourselves whether science does or does not
harmonise with religion. After that we cannot but give ourselves up
to the deepest despondency, we cannot but fold our arms in despair
and question whether we shall ever see things clearly.
Amongst our ancestors there were sometimes found men of great
resolution who, in order to punish themselves for cowardice and
luxury, administered discipline to themselves; the idea is not so
extravagant as it appears to some people. A few good strokes of the
whip might result in reviving or strengthening the will, and in forcing
it to resist the moral supineness which is so apt to increase; but
physical discipline is no longer in use amongst us, and in my own
case I have substituted an illustration of which I try never to lose
sight. I picture to myself an ideal potter, whose whole ambition
would be to make good vessels, and, having succeeded in making
some of great solidity, he would choose out those of the finest shape
for the market. He attains success, and his thoughts being occupied
with his pottery only, at last he makes vases of absolute perfection.
With what feelings of envy I contemplate this creature of my
imagination, who is to serve as my model, and yet whom the want
of concentration of thought prevents me from imitating.
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