CHAPTER 6 Importing, Exporting, and Trade Relations · GOALS Identify the economic effects of ......
Transcript of CHAPTER 6 Importing, Exporting, and Trade Relations · GOALS Identify the economic effects of ......
© 2011 South-Western | Cengage Learning
Importing, Exporting,
and Trade Relations
6-1 Importing Procedures
6-2 Exporting Procedures
6-3 Importance of Trade Relations
6-4 The Nature of Competition
CHAPTER 6
INTERNATIONAL BUSINESS, 4e CHAPTER
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Answer the following and turn in
Page 142 4-8
Page 149 10-14
Page 155 8-12
Page 161 9-12
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According to the report: Who asked
Russia to send troops into Ukraine? Why?
What actions are being considered by the
U.S. regarding this crisis? How has the
crisis affected international markets and
the prices of certain commodities?
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LESSON 6-1
Importing Procedures
GOALS Explain the importance of
importing.
Identify the four steps for importing.
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Importance of Importing
Product demand
Lower costs
Production inputs
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Importing Activities
STEP 1: Determine demand
STEP 2: Contact suppliers
STEP 3: Finalize purchase
STEP 4: Receive goods
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Import Assistance
Customs and Border Protection (CBP)
Food and Drug Administration (FDA)
U.S. Department of Agriculture (USDA)
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LESSON 6-2
Exporting Procedures
GOALS Identify the steps of the exporting
process.
Describe the exporting of services.
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The Exporting Process
STEP 1: Find potential customers
STEP 2: Meet the needs of customers
STEP 3: Agree on sales terms
STEP 4: Deliver products or services
STEP 5: Complete the transaction
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Sales Terms
Free on board (FOB)
Cost, insurance, and freight (CIF)
Cost and freight (C&F)
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Export Documents
Bill of lading
Certificate of origin
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Obstacles to Exporting
No company representatives in foreign countries
Products not appropriate for foreign consumers
Insufficient production facilities to manufacture enough goods for exporting
High costs of doing business in other countries
Difficulty understanding foreign business procedures
Difficulty obtaining payment from foreign customers
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Commonly Exported Services
Hospitality
Hotels, food service
Entertainment
Movies, music, television production,
amusement parks
Financial services
Insurance, real estate
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LESSON 6-3
Importance of Trade Relations
GOALS Identify the economic effects of
foreign trade.
Describe the types of trade
agreements between countries.
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The Economic Effect of
Foreign Trade
Balance of trade
Trade deficit
Trade surplus
Balance of payments
Positive, or favorable
Negative, or unfavorable
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Trade Agreements
Promote economic development
Encourage international business activities
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The World Trade Organization
Deals with rules of trade between nations
Helps producers of goods and services,
exporters, and importers conduct their
business
Encourages international trade
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Regional Cooperation
Economic community
Common market
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Barter Agreements
Direct barter
Countertrade
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Free-Trade Zones
An area designated by a government for
duty-free entry of nonprohibited goods
Commonly located at a point of entry into
a nation
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LESSON 6-4
The Nature of Competition
GOALS List factors that affect international
business competition.
Explain the types of competitive
market situations.
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International Business
Competition
Factors affecting competition
Number of companies
Business costs
Product differences
Benefits and concerns of competition
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Types of Competitive Situations
Pure competition
Monopolistic competition
Oligopoly
Monopoly
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Competitive Market Situations
Monopolistic Competition
● Many sellers
● Slightly different product
Oligopoly
● Few sellers
● Slightly different product
Pure Competition
● Many sellers
● Same product
Monopoly
● One seller
● Usually government
regulated
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Answer the following
Page 142 – 4-8
Page 149- 10-14
Page 155 8-12
Page 161 9-12
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Globalization
There is certainly a positive side to globalization. Those who
support it say that it creates jobs by making companies more
competitive. This results in lower prices for consumers.
Others support globalization because it brings capital and
technologies to impoverished nations and brings international
products back to the United States in return. Globalization
increases the number of decisions that are made on a
worldwide level, resulting in a merging of politics and
decisions that are made for the good of people all over the
world. The cultural intermingling that occurs also promotes
greater equality and acceptance of others, especially since
different people can share the same financial interests.
Speedy travel and worldwide communication has resulted in a
more educated, more cultured public.
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Name ID# Date Class period
Teacher Name Writing Prompt
Write about how you might use information
you’ve learned in this class in a real world
situation
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You need
Textbook
Whiteboard
Notebook
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If a large retail company raises the
minimum wage it pays its workers, what
impact do you think it might have on the
company, the workers, and the
customers? How might a minimum wage
hike impact a small business, its workers,
and its customers? Do you think the
overall impact on the economy would be
positive or negative? Explain.
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