Post on 26-Mar-2015
Chapter Four – Globalization
PART ONE:TODAY’S BUSINESS
ENVIRONMENT
Chapter Learning Objectives
Globalization: The Shrinking of Time and Distance
Why and How Companies Conduct International Trade
Conditions Affecting International Trade
International Trade: Barriers and Facilitators
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The Global Workplace & E-Commerce
Globalization: The results Development of the global workplace and
electronic commerce Consolidation of many national markets into
one big world market Development of two opposite kinds of
international business: huge firms and quick, Internet-enabled small firms.
E-commerce
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One Big Market
Free Trade & the Global Economy Imports Exports
Positive Effects Negative Effects Types of Businesses
that Succeed Big Quick
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Conducting International Trade
Trading with other countries No country is self-sufficient Some countries have natural resources
other countries do not have Some countries have technology that other
countries want Competitive advantage
Absolute advantage Comparative advantage
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Balance of Trade, Payments & Countertrading
Balance of Trade: Comparing exports & imports
Trade surplus Trade deficit
Balance of Payments: Comparing money in & money out
Balance-of-payments surplus Balance-of-payments deficit
Countertrading
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How Companies Enter Foreign Markets
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Conditions Affecting International Trade
Cultural Conditions Verbal & nonverbal communication Time orientation Religion
Economic Conditions Infrastructure, resources & development Currency exchange rates
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Conditions Affecting International Trade
Political & Legal Conditions Political System: Democratic or
Totalitarian? Political Stability: What’s the Risk? Approach to Corruption & Enforcement
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Barriers to International Trade
Three Kinds of Trade Protectionism: Tariffs – taxes on imports Import Quotas – limits on how many
products are allowed in Embargoes – bans on certain import or
export products
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Organizations & Common Markets
Organizations Facilitating International Trade: The World Trade Organization (WTO) The World Bank The International Monetary Fund (IMF)
Common Markets NAFTA EU Mercosur APEC
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Learning Objectives Summary
Globalization Companies Conducting International
Trade Conditions Affecting International Trade Barriers and Facilitators Affecting
International Trade
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
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