1 / 12

4. Global Markets

4. Global Markets. The Basis For International Business. Encompasses all exchanges across international boundaries Steady increase in trade since WWII For U.S., international business means: New markets New sources of inexpensive labor, raw materials, etc.

toyah
Download Presentation

4. Global Markets

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. 4. Global Markets

  2. The BasisFor International Business • Encompasses all exchanges across international boundaries • Steady increase in trade since WWII • For U.S., international business means: • New markets • New sources of inexpensive labor, raw materials, etc. • For foreign firms, means piece of large, lucrative U.S. market

  3. Forms of Trade Advantage • Absolute advantage • Ability to produce specific product more efficiently than any other nation • Comparative advantage • The ability to produce specific product more efficiently than any other product

  4. Exporting & Importing • Exporting • Importing • Balance of trade • Trade deficit • Balance of payments

  5. RestrictionsOn International Business • Trade restrictions • Tariffs • Dumping • Nontariff barriers • Import quotas • Embargoes • Foreign-exchange controls • Societal, economic & regulatory differences • Language, values, infrastructure, currency shifts, political/legal

  6. Reasons for Trade Restrictions • Equalization of balance of payments • Protection of: • New/weak industries • National security • Public health • Jobs • Retaliation

  7. The Extent of International Business • Trend toward elimination of trade barriers • General Agreement on Tariffs & Trade (Monitored by World Trade Organization) • The Kennedy Round (1964-1967) • The Tokyo Round (1973-1979) • The Uruguay Round (1986-1993) • The Doha Round (2001-Ongoing)

  8. The Extent of International Business (Cont.) • International Economic Communities • European Union (EU) • European Economic Area (EEA) • European Monetary Union (EMU) • North American Free Trade Agreement (NAFTA) • Association of Southeast Asian Nations (ASEAN) • Pacific Rim • Commonwealth of Independent States (CIS) • Caribbean Basin Initiative (CBI) • Organization of Petroleum Exporting Countries (OPEC) • Organization for Economic Cooperation & Development (OECD)

  9. Methods of EnteringInternational Business • Contractual agreements • Licensing, franchising, subcontracting • Exporting (indirect & direct) & importing • Through an export-import merchant or agent • Through export trading or management companies • Through offset agreements • Through establishment of sales offices or branches • Joint ventures & strategic alliances • Totally owned facilities (direct investment) • Countertrade • Multinational corporations

  10. Strategies forInternational Business • Global business strategy • Standardization strategy • Multidomestic business strategy • Adaptation strategy

  11. Sources of Export Assistance • Some export assistance programs include: • U.S. Export Assistance Centers • International Trade Administration • U.S. and Foreign Commercial Services • Export Legal Assistance Network • Advocacy Center • American Business Center • The Business Service for the Newly Independent States • Eastern Europe Business Information Center • National Trade Data bank

  12. Financing International Business • Export-Import Bank of the United States (Eximbank) • Multilateral Development Banks (MDB) • World Bank • Inter-American Development Bank (IDB) • African Development Bank (AFDB) • European Bank for Reconstruction and Development (EBRD) • International Monetary Fund (IMF)

More Related