1 / 35

Nickels McHugh McHugh

Nickels Cover. Nickels McHugh McHugh. 3. Chapter. Competing in Global Markets. 3- 2. Growing World Population. In Billions. Source: Population Reference Bureau. Company % of Earnings From Outside U.S. Source: Investment Advisor , August 2000.

garyboggs
Download Presentation

Nickels McHugh McHugh

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Nickels Cover Nickels McHugh McHugh

  2. 3 Chapter Competing in Global Markets 3-2

  3. Growing World Population In Billions Source: Population Reference Bureau

  4. Company % ofEarnings From Outside U.S. Source: Investment Advisor, August 2000

  5. Leading Goods Exporters/Importers (2001) CountryExportsImports United States 731 1,180 Germany 571 493 Japan 404 350 France 322 326 United Kingdom 273 332 World Total 6,155 6,441 In Billion $ Source: World Trade Organization

  6. Leading Services Exporters/Importers (2001) In Billion $ CountryExportsImports United States 263 188 Germany 80 133 Japan 64 107 France 80 62 United Kingdom 108 92 World Total 1,460 1,445 Source: World Trade Organization

  7. Why Trade With Other Nations? • No nation can produce all its needs • Mutually beneficial exchange • Natural Resources or Technology- Produce or Buy?

  8. U.S. Trading Partners RegionExportsImports Asia 26.5% 36.3% West. Europe 24.0 20.8 North America 22.5 18.7 Latin America 21.8 17.3 Middle East 2.7 3.3 Africa 1.7 2.3 C./E. Europe/ Baltic States/CIS 0.9 1.3 Total 100% 100% Source: World Trade Organization, 2001

  9. Theories of Advantage Comparative U. S. China China U. S. Output per Unit of Input Software Clothing

  10. Global Competitiveness

  11. Theories of Advantage Absolute = Virtual Monopoly South Africa Output per Unit of Input The Rest of the World Diamond Production

  12. Global Trade • Goods & Services • Importing • Exporting • Measuring Trade • Balance of Trade/Payments • Trade Deficit

  13. McDonald’s International Menu • Philippines McSpaghetti • Germany McBeer • Switzerland Vegi Mac • Malaysia Sugar Cane Juice • Netherlands Cappuccino Donuts • Greece Shrimp, Veggie Burgers, & Spring Rolls (sold during Lent)

  14. Daily Coffee Consumption per Capita Source: Business 2.0. July 2002.

  15. Starbucks Around the World World Locations International Locations Source: Business 2.0, July 2002.

  16. U. S. Trade inGoods & Services ($ Billions) Balance of Trade Source: St. Louis Business Monthly, Oct. 1999 & World Trade Organization

  17. Sources of U.S. Oil Imports In Millions of Barrels Source: USA Today

  18. U.S. Trade Experience • Balance of Payments • Debtor Nation • Foreign Direct Investment • Dumping

  19. Sources of Foreign Direct Investments In the U.S. Source: U.S. Commerce Dept.

  20. Licensing Exporting Franchising Contract Manufacturing Joint Ventures Strategic Alliances Subsidiaries-MNCs Foreign Direct Investment Strategies forReaching Global Markets

  21. World’s LargestMNCs- 2002 Revenue ($Billions) • Wal-Mart Stores  217 • Exxon Mobil  213 • General Motors  175 • BP  174 • Ford Motor  162 • Daimler Chrysler  136 • Royal Dutch/Shell Group  135 • General Electric  125 • Toyota Motor  121 • Mitsubishi 112

  22. Forces Affecting Tradingin Global Markets • Socio-cultural • Economic & Financial • Legal & Regulatory • Physical & Environmental • Trade Protectionism • Global E-Commerce-Future

  23. Days of Annual Vacation Source: AAA World

  24. Language Religion Values & Attitudes Cultural Differencesin Global Markets • Aesthetics • Materialism

  25. Did You Know? • In Turkey it’s rude to cross your arms while you are facing someone. • In the Arab world the left hand is considered unclean; don’t eat with it! • In India never pat someone’s head, it’s the seat of the soul. • The Chinese associate gifts such as straw sandals, clocks and handkerchiefs with funerals.

  26. What’s the 2nd Most ValuableGlobal Business Language? Source: Accountemps Poll

  27. Britain - Tomato Japan - Corn South America - Cream of Asparagus Australia- Cream of Pumpkin Favorite CampbellSoups Around the World • Hong Kong - Watercress & Duck Gizzard • United States - Chicken Noodle, Cream of Mushroom

  28. Nations That Have NotConverted to the Metric System United States Brunei Yemen Liberia Myanmar (Burma)

  29. Economic & Financial Forces • No Worldwide Currency • Currency Fluctuations • Floating Exchange Rates • Bartering/Countertrading

  30. Developing CountriesNeed Infrastructure • 1.2 billion people lack clean drinking water • 3 billion people lack adequate sanitation • 2 billion people lack electricity

  31. Legal &Regulatory Forces • Inconsistent Laws & Regulations • Foreign Corrupt Practices Act of 1978 • Local Business Contact Required

  32. Protectionism • Mercantilism • Tariffs • Protective • Revenue • Import Quota • Embargo • Nontariff Barriers-Keiretsu

  33. Trade Agreements • General Agreement on Tariffs & Trade (1948) • Uruguay Round of GATT (1986) • Lower Tariffs • Extend Rules • World Trade Organization (1995) • Common Markets • European Union (EU) • Mercosur • North American Free Trade Agreement (1994)

  34. European Union (EU)

  35. Future Global Trade • People’s Republic of China- Permanent Normal Trade Relations/Rights • Russia & Others • Internet • Technology- Obstacles/Problems

More Related