Business 7th Edition Czinkota Terrorism
1 GLOBALIZATION IMPERATIVE 1
Why Global Marketing Is Imperative 3
Globalization of Markets: Convergence and Divergence 10
International Trade versus International Business 13
- Terrorism and international business: A research agenda. As governments tighten security at public sites, businesses have become more attractive terrorist targets, with important implications for the operations and performance of multinational firms. While terrorism has been substantially studied in other fields.
- International Business 7TH EDITION by Michael R. Czinkota, Ilkka A. Ronkainen and Michael H. South-Western Publishing Co.,2005 (.
Business Law Today Comprehensive, 7th Edition Roger Miller, Gaylord A. Jentz Business Law Today Comprehensive, 8th Edition Roger LeRoy Miller Gaylord A. Jentz Business Law Today Comprehensive, 9th EditionRoger LeRoy Miller, Gaylord A.
Who Manages International Trade? 14
Evolution of Global Marketing 15
What Is Marketing? 15
Domestic Marketing 16
Export Marketing 18
International Marketing 18
Multinational Marketing 19
Global Marketing 20
The Impact of Economic Geography and Climate on Global Marketing 21
Summary 23
Key Terms 23
Review Questions 24
Discussion Questions 24
Further Reading 24
Appendix: Theories of International Trade and the Multinational Enterprise 25
Summary 31
Key Terms 31
Case 1-1: Understanding the Local Customs and Preferences: A Lesson Learned from Best Buy Pullout of the Chinese Market
Case 1-2: Keeping with the Times — McDonald’s, I’m Lovin’ It!
Available online at www.Wiley.com/College/Kotabe
2 ECONOMIC ENVIRONMENT 32
Intertwined World Economy 34
Foreign Direct Investment 36
Portfolio Investment 37
Country Competitiveness 39
Changing Country Competitiveness 39
Human Resources and Technology 39
Emerging Economies 41
Evolution of Cooperative Global Trade Agreements 43
General Agreements on Tariffs and Trade 43
World Trade Organization 44
Information Technology and the Changing Nature of Competition 49
Value of Intellectual Property in Information Age 50
Proliferation of E-Commerce and Regulations 51
Regional Economic Arrangements 52
Free Trade Area 53
Customs Union 55
Common Market 55
Monetary Union 55
Political Union 56
Multinational Corporations 56
Summary 58
Key Terms 58
Review Questions 58
Discussion Questions 59
Further Reading 60
Case 2-1: Brazil, Mexico, and the Car War
Case 2-2: Boeing versus Airbus? Or the United States versus the EU? Let the WTO Decide!
Available online at www.Wiley.com/College/Kotabe
3 FINANCIAL ENVIRONMENT 61
Historical Role of the U.S. Dollar 62
Development of Today’s International Monetary System 63
The Bretton Woods Conference 63
The International Monetary Fund 64
The International Bank for Reconstruction and Development 65
Fixed versus Floating Exchange Rates 66
Currency Blocs 66
Foreign Exchange and Foreign Exchange Rates 68
Purchasing Power Parity 68
Forecasting Exchange Rate Fluctuation 69
Coping with Exchange Rate Fluctuations 70
Spot versus Forward Foreign Exchange 72
Exchange Rate Pass-Through 73
Balance of Payments 75
The Internal and External Adjustments 78
Economic and Financial Turmoil around the World 79
Asian Financial Crisis and Its Aftermath 79
The South American Financial Crisis and Its Aftermath 80
The U.S. Subprime Mortgage Loan Crisis and the Subsequent Global Financial Crisis 80
Financial Crises in Perspective 81
Responses to the Regional Financial Crises 82
Marketing in the Euro Area 85
Historical Background 85
Ramifications of the Euro for Marketers 88
Summary 90
Key Terms 91
Review Questions 91
Discussion Questions 91
Further Reading 92
Case 3-1: Samsung’s Survival of the Asian Financial Crisis
Case 3-2: Manufacturing Location: The United States or China
Available online at www.Wiley.com/College/Kotabe
4 GLOBAL CULTURAL ENVIRONMENT AND BUYING BEHAVIOR 93
Meaning of Culture 95
Elements of Culture 96
Material Life 96
Language 96
Social Interactions 101
Aesthetics 102
Religion 104
Education 106
Value Systems 107
Cross-Cultural Comparisons 108
High- versus Low-Context Cultures 108
Hofstede’s Classification Scheme 109
GLOBE Project 112
World Value Survey (WVS) 114
Adapting to Cultures 115
Culture and the Marketing Mix 117
Product Policy 118
Pricing 119
Distribution 120
Promotion 120
Summary 122
Key Terms 123
Review Questions 123
Discussion Questions 123
Further Reading 124
Case 4-1: Mickey Mouse Educating China’s Children
Case 4-2: Harley-Davidson in China: Barriers of Entry for Two-Wheelers
Available online at www.Wiley.com/College/Kotabe
5 POLITICAL AND LEGAL ENVIRONMENT 125
Political Environment — Individual Governments 126
Home Country versus Host Country 126
Structure of Government 128
Government Policies and Regulations 130
Political Environment — Social Pressures and Political Risk 138
Social Pressures and Special Interests 138
Managing the Political Environment 141
Terrorism and the World Economy 145
International Agreements 147
Group of Seven (G7), Group of Eight (G8), and Group of Twenty (G20) 148
Wassenaar Arrangement 150
International Law and Local Legal Environment 151
International Law 151
Local Legal Systems and Laws 152
Jurisdiction 155
Issues Transcending National Boundaries 155
ISO 9000 and 14000 155
Intellectual Property Protection 156
International Treaties for Intellectual Property Protection 162
Antitrust Laws of the United States 165
Antitrust Laws of the European Union 167
U.S. Foreign Corrupt Practices Act of 1977 167
Summary 170
Key Terms 170
Review Questions 170
Discussion Questions 171
Further Reading 172
Case 5-1: Wal-Mart Bribery Case in Mexico
Case 5-2: Trademark Lawsuit in China: Proview’s IPAD versus Apple’s iPad
Available online at www.Wiley.com/College/Kotabe
6 GLOBAL MARKETING RESEARCH 174
Research Problem Formulation 177
Secondary Global Marketing Research 178
Secondary Data Sources 179
Problems with Secondary Data Research 181
Primary Global Marketing Research 183
Focus Groups 183
Survey Methods for Cross-Cultural Marketing Research 184
Observational Research 189
Leveraging the Internet for Global Market Research Studies 190
Market Size Assessment 193
Method of Analogy 193
Trade Audit 194
Chain Ratio Method 195
Cross-Sectional Regression Analysis 196
New Market Information Technologies 197
Managing Global Marketing Research 199
Selecting a Research Agency 199
Coordination of Multicountry Research 200
Summary 201
Key Terms 202
Review Questions 202
Discussion Questions 202
Further Reading 203
7 GLOBAL SEGMENTATION AND POSITIONING 204
Reasons for International Market Segmentation 205
Country Screening 205
Global Marketing Research 206
Entry Decisions 206
Positioning Strategy 206
Resource Allocation 207
Marketing Mix Policy 208
International Market Segmentation Approaches 209
Segmentation Scenarios 210
Bases for International Market Segmentation 212
Demographics 213
Socioeconomic Variables 214
Behavior-Based Segmentation 216
Lifestyle and Values 217
International Positioning Strategies 220
Uniform versus Localized Positioning Strategies 222
Universal Positioning Appeals 225
Global, Foreign, and Local Consumer Culture Positioning 226
Summary 228
Key Terms 229
Review Questions 229
Discussion Questions 229
Further Reading 229
Appendix 230
Case 7-1: Coach — Selling Handbags Overseas
Case 7-2: Hyundai Conquers Europe
Case 7-3: Lego Friends (A)
Available online at www.Wiley.com/College/Kotabe
8 GLOBAL MARKETING STRATEGIES 233
Information Technology and Global Competition 234
Real-Time Management 234
Online Communication 235
Electronic Commerce (E-Commerce) 235
E-Company 237
Faster Product Diffusion 237
Global Citizenship 237
Global Strategy 238
Global Industry 238
Competitive Industry Structure 241
Competitive Advantage 243
Hypercompetition 248
Interdependency 248
Global Marketing Strategy 249
Benefits of Global Marketing 250
Limits to Global Marketing 252
R&D, Operations, and Marketing Interfaces 255
R&D/Operations Interface 255
Operations/Marketing Interface 257
Marketing/R&D Interface 259
Regionalization of Global Marketing Strategy 260
Cross-Subsidization of Markets 261
Identification of Weak Market Segments 261
Use of the “Lead Market” Concept 263
Marketing Strategies for Emerging Markets 264
Competitive Analysis 267
Summary 268
Key Terms 268
Review Questions 269
Discussion Questions 269
Further Reading 270
Case 8-1: GM and Ford’s Pursuit of Different Benefits from Global Marketing
Case 8-2: P&G: We’re also Chinese
Available online at www.Wiley.com/College/Kotabe
9 GLOBAL MARKET ENTRY STRATEGIES 271
Country Selection 272
Scale of Entry 275
Choosing the Mode of Entry 276
Decision Criteria for Mode of Entry 276
Exporting 280
Licensing 282
Benefits 283
Caveats 283
Franchising 284
Benefits 285
Caveats 285
Expanding Through Joint Ventures and Alliances 286
Benefits 288
Caveats 288
Drivers behind Successful International Joint Ventures 290
Wholly Owned Subsidiaries 292
Benefits 292
Caveats 293
Acquisitions and Mergers 293
Greenfield Operations 296
Dynamics of Entry Strategies 296
Timing of Entry 298
Exit Strategies 300
Reasons for Exit 300
Risks of Exit 302
Guidelines 303
Summary 303
Key Terms 304
Review Questions 304
Discussion Questions 304
Further Reading 305
Appendix A: Alternative Country Screening Procedure 306
Appendix B: Mode of Entry Choice—Three Theoretical Perspectives 306
Case 9-1: The Home Depot Throws in the Towel in China
Case 9-2: Alfa Romeo—“Il Ritorno”
Case 9-3: Starbucks’ Foray in Tea-Loving India
Available online at www.Wiley.com/College/Kotabe
10 GLOBAL PRODUCT POLICY DECISIONS I: DEVELOPING NEW PRODUCTS FOR GLOBAL MARKETS 308
Standardization versus Customization 309
Drivers toward Standardization 310
Modular Product Design Strategies 312
Back-of-the-Envelope Calculations — Incremental Break-Even Analysis (IBEA) 314
Multinational Diffusion 316
Developing New Products in the Global Marketplace 319
Identifying New Product Ideas 320
Screening 320
Concept Testing 321
Test Marketing 321
Timing of Entry:Waterfall versus Sprinkler Strategies 323
Truly Global Product Development 326
Summary 328
Key Terms 328
Review Questions 329
Discussion Questions 329
Further Reading 329
Appendix: Using Conjoint Analysis for Concept Testing in Global New Product Development 330
Case 10-1: Tesla in China: an Uphill Battle?
Case 10-2: Estée Lauder’s Made-for-China Osiao Brand
Case 10-3: Rémy Martin Introduces Centaure to China
Available online at www.Wiley.com/College/Kotabe
11 GLOBAL PRODUCT POLICY DECISIONS II: MARKETING PRODUCTS AND SERVICES 333
Global Branding Strategies 335
Global Branding 335
Local Branding 338
Global or Local Branding? 340
Brand-Name Changeover Strategies 344
Management of Multinational Product Lines 347
Product Piracy 351
Strategic Options against Product Piracy 353
Country-of-Origin (COO) Effects 355
Country-of-Origin (COO) Influences on Consumers 356
Strategies to Cope with COO Stereotypes 358
Global Marketing of Services 360
Challenges in Marketing Services Internationally 360
Opportunities in the Global Service Industries 361
Global Service Marketing Strategies 362
Summary 363
Key Terms 363
Review Questions 363
Discussion Questions 364
Further Reading 364
Case 11-1: Tata Motors Acquires the Jaguar Icon Case 11-2: Budweiser: “The King of Beers” Eyes Brazil
Case 11-3: Veet in China: Selling Hair-Removal Cream to Chinese Women
Case 11-4: L’Oréal China — Nursing Mininurse Back to Health
Available online at www.Wiley.com/College/Kotabe
12 GLOBAL PRICING 366
Drivers of Foreign Market Pricing 367
Company Goals 367
Company Costs 368
Customer Demand 369
Competition 370
Distribution Channels 372
Government Policies 373
Managing Price Escalation 374
Pricing in Inflationary Environments 376
Global Pricing and Currency Fluctuations 378
Currency Gain/Loss Pass Through 378
Currency Quotation 381
Transfer Pricing 381
Determinants of Transfer Prices 381
Setting Transfer Prices 382
Minimizing the Risk of Transfer Pricing Tax Audits 383
Global Pricing and Antidumping Regulation 384
Price Coordination 385
Global Pricing Contracts (GPCs) 386
Aligning Pan-Regional Prices 387
Implementing Price Coordination 388
Summary 389
Key Terms 389
Review Questions 389
Discussion Questions 389
Further Reading 390
Case 12-1: Starbucks in Hot Water in the United Kingdom after Tax-Related Customer Revolt
Case 12-2: Starbucks Under Fire in China Over Its Pricing Policies
Case 12-3: Carlsberg Malaysia — Selling Beer in a 60 Percent Muslim Nation
Available online at www.Wiley.com/College/Kotabe
13 GLOBAL COMMUNICATION STRATEGIES 391
Global Advertising and Culture 392
Language Barriers 392
Other Cultural Barriers 394
Communication and Cultural Values 394
Setting the Global Advertising Budget 395
Percentage of Sales Method 396
Competitive Parity 396
Objective-and-Task Method 397
Resource Allocation 397
Creative Strategy 398
The “Standardization” versus “Adaptation” Debate 398
Merits of Standardization 398
Barriers to Standardization 400
Approaches to Creating Advertising Copy 401
Global Media Decisions 403
Media Infrastructure 404
Media Limitations 404
Recent Trends in the Global Media Landscape 405
Advertising Regulations 406
Choosing an Advertising Agency 409
Other Communication Platforms 411
Sales Promotions 411
Direct Marketing 413
Global Sponsorships 414
Mobile (Brand-in-the-Hand) Marketing 416
Trade Shows 417
Product Placement 418
Branded Entertainment (Content) 418
Viral Marketing 420
Global Public Relations (PR) and Publicity 421
Globally Integrated Marketing Communications (GIMC) 422
Summary 423
Key Terms 423
Review Questions 423
Discussion Questions 424
Further Reading 424
Case 13-1: P&G China—A Legal Cloud over SK-II
Case 13-2: The Casting of Dove Soap in “UglyWudi”
Case 13-3: Kiwi Schoolgirls Find Almost No Vitamin C in Ribena Drink
Available online at www.Wiley.com/College/Kotabe
14 SALES MANAGEMENT 426
Market Entry Options and Salesforce Strategy 428
Role of Foreign Governments 431
Cultural Considerations 432
Personal Selling 432
Cultural Generalization 433
Corporate (Organizational) Culture 433
Relationship Marketing 434
Myers–Briggs Type Indicator 435
Impact of Culture on Sales Management and Personal Selling Process 437
Salesforce Objectives 438
Salesforce Strategy 439
Recruitment and Selection 440
Training 441
Supervision 441
Evaluation 443
Cross-Cultural Negotiations 444
Stages of Negotiation Process 444
Cross-Cultural Negotiation Strategies 444
Expatriates 448
Advantages of Expatriates 448
Difficulties of Sending Expatriates Abroad 449
The Return of the Expatriate — Repatriation 452
Generalizations about When Using Expatriates Is Positive or Negative 453
Summary 454
Key Terms 454
Review Questions 454
Discussion Questions 455
Further Reading 455
Case 14-1: Hilton University—For Employees Only!
Case 14-2: Let’s Have Some Swedish Flavor around theWorld!
Available online at www.Wiley.com/College/Kotabe
15 GLOBAL LOGISTICS AND DISTRIBUTION 457
Definition of Global Logistics 459
Managing Physical Distribution 461
Modes of Transportation 462
Warehousing and Inventory Management 464
Third-Party Logistics (3PL) Management 467
Logistical Revolution with the Internet 468
Managing Sourcing Strategy 470
Procurement: Types of Sourcing Strategy 471
Outsourcing of Service Activities 474
Free Trade Zones 479
International Distribution Channel 482
Channel Configurations 482
Channel Management 483
International Retailing 484
E-Commerce and Retailing 486
Private-Label Branding (Store Brands) 487
“Push” versus “Pull” 488
On-Time Retail Information Management 489
Retailing Differences across the World 491
Summary 493
Key Terms 494
Review Questions 494
Discussion Questions 494
Further Reading 495
Case 15-1: Past, Current, and Future Journey of Tesco in the U.S. Market
Case 15-2: French Retailer Carrefour: Loses in Japan but Wins in China?
Case 15-3: Which Distributor to Choose in Costa Rica?
Available online at www.Wiley.com/College/Kotabe
16 EXPORT AND IMPORT MANAGEMENT 497
Organizing for Exports 498
Research for Exports 498
Export Market Segments 500
Indirect Exporting 501
Direct Exporting 502
Mechanics of Exporting 502
Legality of Exports 503
Export Transactions 504
Terms of Shipment and Sale 505
Payment Terms 505
Currency Hedging 507
Role of the Government in Promoting Exports 508
Export–Import Bank 510
Tariff Concessions 511
Export Regulations 512
Managing Imports — The Other Side of the Coin 513
Mechanics of Importing 515
Import Documents and Delivery 516
Import Duties 516
Gray Markets 517
Summary 525
Key Terms 525
Review Questions 526
Discussion Questions 526
Further Reading 527
Case 16-1: BrewDog: Establishing a Beachhead in Japan, but Where Do We Go from There for Further Expansion?
Case 16-2: An Upset Merck
Available online at www.Wiley.com/College/Kotabe
17 PLANNING, ORGANIZATION, AND CONTROL OF GLOBAL MARKETING OPERATIONS 528
Global Strategic Marketing Planning 529
Bottom-Up versus Top-Down Strategic Planning 529
Pitfalls 529
Key Criteria in Global Organizational Design 530
Environmental Factors 530
Firm-Specific Factors 531
Organizational Design Options 531
Business 7th Edition Czinkota Terrorism Pdf
International Division Structure 532
Global Product Division Structure 532
Geographic Structure 533
Matrix Structure 536
The Global Network Solution 538
Organizing for Global Brand Management 539
Global Branding Committee 539
Brand Champion 540
Global Brand Manager 540
Informal, Ad Hoc Branding Meetings 540
Life Cycle of Organizational Structures 540
Control of Global Marketing Efforts 542
Formal (“Bureaucratic”) Control Systems 543
Informal Control Methods 544
“Soft” versus “Hard” Levers 545
Summary 545
Key Terms 546
Review Questions 546
Discussion Questions 547
Further Reading 547
Case 17-1: Revamping Procter & Gamble: “Organization 2005”
Available online at www.Wiley.com/College/Kotabe
18 MARKETING STRATEGIES FOR EMERGING MARKETS 548
Emerging Markets 549
Definition 549
Characteristics of Emerging Markets 550
Competing with the New Champions 553
The New Champions 554
Competing against the Newcomers 558
Targeting/Positioning Strategies in Emerging Markets — BOP or no BOP? 560
Entry Strategies for Emerging Markets 562
Timing of Entry 562
Entry Mode 563
Product Policy 564
Product Innovation 564
Branding 565
Packaging 567
Pricing Strategy 567
The Distribution Challenge 568
Creating Distribution Systems 569
Managing Distributor Relationships 570
Communication Strategies for Emerging Markets 572
Push versus Pull Activities 572
Mass Media versus Nontraditional Marketing Approaches 573
Summary 574
Key Terms 575
Review Questions 575
Discussion Questions 575
Further Reading 575
Case 18-1: Heineken Re-enters Myanmar Case 18-2: Jollibee Foods — A Bee Stinging McDonald’s
Business 7th Edition Czinkota Terrorism Attack
Case 18-3: Nissan’s Revived Datsun — The Model T for the Twenty-First Century?
Available online at www.Wiley.com/College/Kotabe
19 GLOBAL MARKETING AND THE INTERNET 577
Barriers to Global Internet Marketing 578
Language Barriers 578
Cultural Barriers 580
Infrastructure 581
Knowledge Barriers 582
Legal Environment and Government Regulations 584
Global Internet Consumers 585
Globally Integrated versus Locally Responsive Internet Marketing Strategies 585
The Internet and Global Product Policy 589
Global Branding and the Internet 589
Web-Based Global New Product Development 589
Web-Based Marketing of Services 590
Global Pricing and the Web 591
Price Transparency 591
Group Buying 592
Global Distribution Strategies and the Internet 593
Role of Existing Channels 593
E-Tailing Landscape 595
The Role of the Internet for Global Communication Strategies 596
Online Advertising 597
Nontraditional (NT) Web-Based Communication 599
Online Monitoring 600
Summary 601
Key Terms 601
Review Questions 601
Discussion Questions 602
Further Reading 602
Case 19-1: Yahoo! and Alibaba: Seeking Dominance in Chinese Cyberspace
Case 19-2: VWPolo—Hoax ad Spreads Like a Wildfire
Case 19-3: eBay’s Forays into China
Available online at www.Wiley.com/College/Kotabe
20 SUSTAINABLE MARKETING IN THE GLOBAL MARKETPLACE 603
Global Corporate Citizenship 604
Scope of CSR 605
Major Areas of CSR 606
Corruption/Graft 606
Environmental Concerns 607
Supply Chain Accountability 609
Commitment toward Customers 611
Community Support (Cause-Related Marketing) 612
The Case for Sustainability 613
Challenges for Sustainability Strategies 615
Cultural Tensions 615
Sustainability Image 617
Poor Infrastructure 618
Sustainable Marketing and Global Consumers 618
Developing and Implementing a Sustainable Strategy 620
Step 1: Set Objectives and Targets 621
Step 2: Understand the Operating Environment 621
Step 3: Specify Strategic Sustainability Initiatives 621
Step 4: Implement 623
Step 5: Develop Metrics for Monitoring and Reporting 625
Global Stakeholder Engagement Programs 626
Sustainable Marketing Mix Policy for the Global Marketplace 628
Developing Sustainable Products and Services 628
Sustainable Pricing 630
Communication and Sustainability 631
Sustainability and Distribution Channels 633
Crisis Management and Consumer Boycotts 633
Crisis Management 634
Consumer Boycotts 635
Summary 636
Key Terms 637
Review Questions 637
Discussion Questions 637
Further Reading 638
Case 20-1: Greenpeace Asks Kit Kat to give Orangutans a Break
Case 20-2: KFC Faces a Food Safety Crisis in China Case 20-3: Nestlé Faces a Storm in a Cup of Maggi Noodles in India
Available online at www.Wiley.com/College/Kotabe
CASES (AVAILABLE AT: WWW.WILEY.COM/COLLEGE/KOTABE)
New cases in the 7th edition:
Honda in Europe (2016 Update)
Airbnb: Going for Gold 2020
Nintendo: I am on journey…a mission to save Mario!
Target Corporation: Canadian Disaster Techtronic Industries: Tooling Up for Asia Chow Tai Fook: Fulfilling the Chinese Dream
And many more cases available on the textbook’s website.
SUBJECT INDEX 639
NAME INDEX 659
COMPANY INDEX 669
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