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BA 101 Introduction to Business

BA 101 Introduction to Business. 3. Competing in the Global Economy. Scarce Recourses. Limited Capabilities. Global Ambitions. Economies of Scale. Why Nations Trade. Theories of Production and Trading. Absolute Advantage. Comparative Advantage. Balance of Trade. Balance

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BA 101 Introduction to Business

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  1. BA 101 Introduction to Business 3.Competing in the Global Economy

  2. Scarce Recourses Limited Capabilities Global Ambitions Economies of Scale Why Nations Trade

  3. Theories of Production and Trading Absolute Advantage Comparative Advantage

  4. Balance of Trade Balance of Payments Surplus Cash Inflow Deficit Cash Outflow MeasuringInternational Trade

  5. Free Trade Fair Trade Trade Restrictions Global Trade Issues

  6. Protectionism and Trade Restrictions Tariffs Quotas Embargoes Sanctions Restrictive Imports Subsidies Dumping

  7. General Agreement on Tariffs and Trade (GATT) Asia Pacific Econ Cooperation Council (APECC) International Monetary Fund (IMF) The World Bank Promoting Free Trade World Trade Organization (WTO)

  8. Trading Blocs Advantages Disadvantages • Help smaller countries • Promote competition • Widen markets • Foster economic growth • Economic isolation • Trade restrictions • Decline in world trade • Fewer choices

  9. United States Canada Mexico North American Free Trade Agreement (NAFTA)

  10. The European Union Minimizing Establishing Local Regulations Global Product Standards Variations in Product Standards Consumer Protection Trade Protectionism Environmental Protection

  11. The EURO The Economic and Monetary Union (EMU) Economic Impact Currency Unification Centralized Banking Currency Exchange

  12. Foreign Exchange Rates and Currency Valuations Floating Rates Government Action Currency Devaluation Fixed Value System

  13. The GlobalBusiness Environment Opportunities Challenges • Growth Potential • Increased Sales • Operating Efficiencies • New Technologies • More Consumer Choices • Laws and Customs • Consumer Preferences • Ethical Standards • Labor Skills • Politics and Economics

  14. Cultural Differences In Global Business • Consider the other person’s customs • Deal with the individual • Clarify your intent and meaning • Adapt your style to the other person • Show respect

  15. Common Forms Levels of Commitment Ownership Financial Risk Importing and Exporting Low Low Low Licensing and Franchising Low Low Low Strategic Alliances and Joint Ventures Moderate Moderate Moderate Direct Foreign Investment High High High International Business Activity

  16. Impact of Terrorism on Global Business Government Expenditures Business Expenditures Transportation Banking

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