UNIT 2 – BUSINESS IN THE GLOBAL ECONOMY Unit 2.02 The Global Marketplace.
Chapter 10 Business in a Global Economy
Transcript of Chapter 10 Business in a Global Economy
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Chapter 10
Business in aGlobal Economy
Section 10.1
The Global Marketplace
Read to Learn
Explain why the world has become a global
economy.
Explain why people and countries specialize in
producing goods and services.
The Main Idea
International trade has increased because more
countries specialize and offer their goods and
services to other countries. Also, the value of one
nation’s currency in relation to other currencies
affects what it buys and sells to other nations.
Key Concepts
The Global Economy
International Trade
Key Term
global
economy
international
trade
the interconnected economies of the
nations of the world
the exchange of goods and
services between nations
Key Term
multinational
corporation
trade
a company that does business in
many countries and has facilities
and offices around the world
a specific area of business or
industry, a skilled occupation, or
the people who work in a specific
area of business or industry
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Key Term
imports
exports
goods and services that one country
buys from another country
goods and services that one country
sells to another country
Key Term
balance of
trade
comparative
advantage
the difference in value between a
country’s imports and exports over
a period of time
the ability of a country or company
to produce a particular good more
efficiently than another country or
company
Key Term
exchange
rate
the price at which one currency can
buy another currency
The Global Economy
We live in a global
economy fueled by
international trade.
The development of
the global economy is
called globalization.
global economythe interconnected economies of the nations of the world
international tradethe exchange of goods and services between nations
The Global Economy
Sony is an example
of a multinational
corporation.
multinational corporationa company that does business in many countries and has facilities and offices around the world
International Trade
Trade allows
countries to meet
their individual wants
and needs as well as
to help their own
economies.
tradea specific area of business or industry, a skilled occupation, or the people who work in a specific area of business or industry
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Multinationals
The top multinational companies include Sony, Coca-Cola, Toyota, and Nike.
Figure 10.1Major Imports and Exports of the United States
Managing and Leading Others
Leaders know their business.
Leaders know the capabilities of their
employees.
Leaders can analyze current trends.
Leaders have vision and can inspire others.
Leaders help a company run smoothly.
Managing and Leading Others
Some people who are managers are not
leaders.
They may focus on specific tasks to make sure
work gets done, but they may not be
visionaries or inspire others.
Quiet Leadership
On December 1, 1955, Rosa Parks, an African American seamstress, was ordered to
give her bus seat to a white male passenger in Montgomery Alabama. Her refusal and subsequent arrest sparked the civil rights
movement.
Types of Trade
Domestic trade is the production, purchase,
and sale of goods and services within a
country.
World trade is the exchange of goods and
services across international boundaries.
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Imports and Exports
One country’s
imports are another
countries exports.
importsgoods and services that one country buys from another country
exportsgoods and services that one country sells to another country
Balance of Trade
The United States
has a favorable
balance of trade
with Australia.
balance of tradethe difference in value between a country’s imports and exports over a period of time
Graphic Organizer
Trade Surplus
A country exports more that
it imports
Trade Deficit
A country imports more that
it exports
Specialization
To specialize means to focus on a particular
activity, area, or product.
Specialization builds and sustains a market
economy.
Using Resources to Specialize
Countries can specialize and trade some of the
items that they produce in order to obtain other
countries’ goods and services.
Using Resources to Specialize
Countries that
specialize may have
a comparative
advantage.
comparative advantagethe ability of a country or company to produce a particular good more effectively than another country or company
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Currency
To trade with another country, businesses
must convert their money into that nation’s
currency.
Currency is exchanged on the foreign
exchange market.
World Currencies
Several countries have the same currencies or use the same currencies.
Currency
The exchange rate
for currencies
changes from day to
day and from country
to country.
exchange ratethe price at which one currency can buy another currency
Currency
Companies follow the exchange rates to find
the best prices for products.
A country with an appreciated exchange rate
can buy more of another country’s products.
1. What is the global economy?
The global economy is the interconnected economies of the nations of the world.
2. What is the difference between domestic trade and international trade?
Domestic trade is between parties within a country. International trade is between parties in different countries.
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3. Why would a country want its currency to appreciate?
A country might want its currency to appreciate so that citizens can buy more goods and services in other countries.
Chapter 10
Business in aGlobal Economy
Section 10.1
The Global Marketplace
End of