3-1 INTERNATIONAL BUSINESS BASICS 3-2 THE GLOBAL MARKETPLACE 3-3 INTERNATIONAL BUSINESS...
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Transcript of 3-1 INTERNATIONAL BUSINESS BASICS 3-2 THE GLOBAL MARKETPLACE 3-3 INTERNATIONAL BUSINESS...
3-1 INTERNATIONAL BUSINESS BASICS
3-2 THE GLOBAL MARKETPLACE
3-3 INTERNATIONAL BUSINESS ORGANIZATIONS
Intro to BusinessChapter 3
Business in the Global Economy
3-1 International Business Basics
Trade Among Nations
Domestic Business –
International Business –
Countries are ____________ and so are their economies.
3-1 International Business Basics
Trade Principles
Absolute Advantage –
Comparative Advantage -
3-1 International Business Basics
Trade Principles
Imports – Exports –
Balance of Trade – the difference between a country’s total exports and imports. Exports > Imports = Imports > Exports =
3-1 International Business Basics
Trade Principles
Money goes from country to country through __________ and _________.
Balance of Payments
Favorable – receive more money than is paid out Unfavorable – sending more money out than it brings in
3-1 International Business Basics
International Currency
Exchange Rate –
Factors affecting value Balance of Payments Economic Conditions Political Stability
3-2 The Global Marketplace
3-2 The Global Marketplace
International Trade Barriers
Quotas –
Tariff –
Embargo –
3-2 The Global Marketplace
Encouraging International Trade
Free-Trade Zones – a selected area where products can be imported duty-free and then stored, assembled, and/or used in manufacturing; often a seaport or airport
Free-Trade Agreement – member countries agree to remove all duties (import taxes) and trade barriers on products traded among them. (Ex: NAFTA)
Common Market – members do away with duties and other trade barriers ; also called an economic community (Ex: European Union, Latin America Integration Association)
3-3 International Business Organizations
Multinational Company (MNC) – an organization that does business in several countries; parent company in ________ country and separate divisions in _____country
MNC Strategies Global Strategy –
Multinational Strategy –
3-3 International Business Organizations
Entering a Global Market
Licensing –
Franchising –
Joint Venture –
3-3 International Business Organizations
International Trade Organizations
World Trade Organization (WTO) Settles trade disputes and enforces free-trade
agreements
International Monetary Fund (IMF) Promotes economic cooperation Monitors exchange rates
World Bank Gives economic aid to less developed countries