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The Global Marketplace

The Global Marketplace. Notes Schoology Assignment. Warm-Up. What would create differences when doing business in other countries?. ELEMENTS OF INTERNATIONAL BUSINESS ENVIRONMENT. Geography Location, climate, terrain, seaports, and natural resources influence business activity.

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The Global Marketplace

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  1. The Global Marketplace Notes Schoology Assignment
  2. Warm-Up What would create differences when doing business in other countries?
  3. ELEMENTS OF INTERNATIONAL BUSINESS ENVIRONMENT Geography Location, climate, terrain, seaports, and natural resources influence business activity. Top 5 Fish Exporting Countries China Norway Thailand USA Canada What do these countries have in common?
  4. ELEMENTS OF INTERNATIONAL BUSINESS ENVIRONMENT Cultural influences Behaviors, Customs, and Values In China, you must give a business card with two hands It is considered rude to stand with your hands in your pockets in Russia Travel is inefficient in Uganda, so it is not uncommon for someone to show up an hour late to a meeting The elderly are highly revered in South Korea, so it is polite to greet any older people first The main factors are Language Religion Social Relationships Families Work environment (Boss/Worker)
  5. ELEMENTS OF INTERNATIONAL BUSINESS ENVIRONMENT Economic development Literacy level Better education usually means better goods and services Technology Aid in productivity and speed in which they can be sold Agricultural dependency Focus on farming means less workers for manufacturing 1.5% of workers in US 70% in some African countries
  6. ELEMENTS OF INTERNATIONAL BUSINESS ENVIRONMENT Political and legal concerns In many countries, the government has laws that hinder business
  7. ELEMENTS OF INTERNATIONAL BUSINESS ENVIRONMENT
  8. How do you CONTROL International Trade?
  9. INTERNATIONAL TRADE BARRIERS Quotas Limit on the quantity of a product that may be imported/exported Reasons for quotas? To keep supply low and prices the same To express displeasure at the policies of the importing country To protect one of a country’s industries from too much competition from abroad
  10. INTERNATIONAL TRADE BARRIERS Tariffs Tax on a certain imported product Reasons for tariffs To set amount per pound, gallon, or other unit To set the value of a good
  11. INTERNATIONAL TRADE BARRIERS Embargoes Stop the export/import of a product Reasons for embargoes To protect a country’s industries from international competition more than the quota or tariff will achieve To prevent products from falling into the hands of unfriendly groups or nations
  12. How do you ENCOURAGE International Trade?
  13. FREE-TRADE ZONES Used to promote international business in a selected area where products can be imported duty-free and then stored, assembled, and/or used in manufacturing Usually located around a seaport or airport
  14. FREE-TRADE AGREEMENTS Member countries agree to remove duties and trade barriers on products traded among them Results in increased trade between members
  15. COMMON MARKETS Allow companies to invest freely in each member’s country Allow workers to move freely across borders Examples European Union (EU) Latin American Integration Association (LAIA)
  16. Section Review What actions could be taken to encourage international trade? Actions that could be taken to encourage international trade include free-trade zones, free-trade agreements, and common markets. What are three formal trade barriers? Quotas Tariffs Embargoes List the four main elements of the international business environment. Geography Cultural influences Economic development Political and legal concerns
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