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Chapter 3: Business in the Global Economy

Chapter 3: Business in the Global Economy. http://www.youtube.com/watch?v=emx92kBKads. Target. Identify why countries trade and are afraid of trade. Explore how countries interact with one another and the international environment. Classify multinational corporations.

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Chapter 3: Business in the Global Economy

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  1. Chapter 3: Business in the Global Economy http://www.youtube.com/watch?v=emx92kBKads

  2. Target • Identify why countries trade and are afraid of trade. • Explore how countries interact with one another and the international environment. • Classify multinational corporations.

  3. International Business 101 • Imports • Items brought in from another nation • Exports • Items sent from your nation • Absolute Advantage • A country can produce item at lower cost better then other nations • Comparative Advantage • A country has more then one absolute advantage, but may only produce one and import the other

  4. Balance of Trade • Difference between imports and exports • Surplus = exports more then imports • Deficit= imports more then the export • 2012 : U.S. trade in goods with World, Seasonally Adjusted

  5. International Currency • Exchange Rate • Value of one currency compared to another • Affected by • Balance of payments • Amount of money that comes into a country and goes out of it • Economic Conditions • Political Stability

  6. Globalization • Become or make something international • 3 Areas • Cultural • Economic • Political and Legal • 4th more minor = Geography

  7. Trade Barriers or Not • Quota • Tariff • Embargo • Free Trade Agreements

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