Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE1 International Business Basics...
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Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE 1 International Business Basics Goals Describe importing and exporting activities. Compare balance of trade and balance of payments. List factors that affect the value of global currencies. 3-1
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Transcript of Intro to Business, 7e © 2009 South-Western, Cengage Learning SLIDE1 International Business Basics...
Intro to Business, 7e
© 2009 South-Western, Cengage Learning 1SLIDE
International Business Basics
GoalsDescribe importing and exporting activities.Compare balance of trade and balance of
payments.List factors that affect the value of global
currencies.
3-1
Intro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 3
2
Key Terms
balance of paymentsbalance of tradeexchange rateexportsimports
Intro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 3
3
TRADING AMONG NATIONS
Absolute advantageComparative advantageImportingExporting
Intro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 3
4
Source: United States Geological Survey Minerals Information
U.S. Import Reliance for Selected Raw Materials
Intro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 3
5
Checkpoint >>
How does importing differ from exporting?
Answer Importing is bringing items from other countries into a
country. Exporting is selling goods and services to other countries.
Intro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 3
6
MEASURING TRADE RELATIONS
Balance of tradeBalance of payments
Intro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 3
7
U.S. Trade Balances
Intro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 3
8
Balance of Trade
Intro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 3
9
Checkpoint >>
How does balance of trade differ from balance of payments?
AnswerBalance of trade is the difference between a country’s total
exports and total imports. Balance of payments is the difference between the amount of
money that comes into a country and the amount that goes out of it.
Intro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 3
10
INTERNATIONAL CURRENCY
Foreign exchange ratesFactors affecting currency valuesThree main factors affect currency
Balance of paymentsEconomic conditionsPolitical disability
Intro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 3
11
Recent Values of Currencies
* U.S. dollars
Intro to Business, 7e
© 2009 South-Western, Cengage Learning SLIDE
Chapter 3
12
Checkpoint >>
What factors affect the value of a country’s currency?
Answerbalance of paymentseconomic conditionspolitical stability
