Introduction to Business Chapter 10 International Business

1. Introduction to Business Chapter 10 International Business Essential Question: How does business ethics help business and their customers ?

2. Objectives: • 1.2 Business Environment (C): Students will understand the development and structure of business environments. They will demonstrate competency by identifying the dynamic components of business structure and its relationship to the global business environment. They will demonstrate competency by using appropriate technology and other resources to solve business problems. • 1.2.7 International Trade–investigate the challenges and opportunities of international trade in both large and small businesses • 1.4 Economics and Financial Concepts (C): Students will understand the impact of global and domestic businesses, financial concepts, and integrated business models. • 1.4.5 Exchange Rates–access and utilize information on exchange rates

3. Chapter Objectives • State the basic reason for nations doing business with each other. • Understand the concepts of currency exchange rates, balance of trade, and balance of payments. • .Explain what is meant by a multinational corporation.

4. Trade among nations. p. 131 • Importing • Imports • Items we buy from other countries • Exporting • Exports • Items we sell to other countries.

5. International Currency. p. 133 • Foreign Exchange market (FOREX) • Exchange rate. • Value of one nation’s currency to another.

6. Barriers to international trade. p. 135 • Quotas • limit of certain goods that may be imported. • Benefits producers of a product within a country • Tariffs. • nation places tax on imported goods • Benefits producers of a product within a country • Embargoes • One or more nation(s) halt(s) the export of a product to another nation. • 1973-74 OPEC Oil Embargo

7. Measuring trade between nations. p. 136 • balance of trade • difference between a nation’s imports and exports • Trade surplus – exports more than it imports • Trade deficit – imports more than it exports • balance of payments • difference between a nation’s currency used overseas via investments and tourism and what is spent by another nation.

8. Global Business Organizations p. 138 • Multinational corporations – a company that conducts business in several countries and is capable of conducting business worldwide. • global strategy – standardizes products and services for worldwide use. • multinational strategy— individualizes goods and services for the country in which it operates.

9. Advantages and disadvantages of international business. p. 139 • Advantages • consumer choices increase. • Opportunities expand for company workforce. • Promotes understanding and cooperation between people • Disadvantages • additional competition in host country • lowers demand of product because of additional product • less local employment in native companies.

10. Assignments • Do Now • Read Legal Perspectives on p. 137 and answer both questions with a short answer • Calculate business data p.141 # 29 Read and calculate answer in an Excel spreadsheet, show your work. Give a short explanation as to your answer. • Workshop Discussion (Each person writes response in notebook.) • Decision-making Strategies p. 141 Open and save in Microsoft Word document. • Communicate Business Concepts questions 10-14 p. 140. Select and write and present your group’s brief response

11. Homework • 10/21 Define Key Terms Develop your Business Language p. 141 • 10/22 Answer Review your reading questions 1-11 p.140