Upload
urbana-high-school
View
951
Download
1
Embed Size (px)
DESCRIPTION
Citation preview
Back to Table of Contents
pp. 146-159
Chapter 10 Business in a Global Economy
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 2 of 62
Learning ObjectivesLearning ObjectivesAfter completing this chapter, you’ll be After completing this chapter, you’ll be able to:able to:
1.1. ExplainExplain why nations need to trade with each other.
2.2. DescribeDescribe how currency exchange works.
continued
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 3 of 62
Learning ObjectivesLearning ObjectivesAfter completing this chapter, you’ll be After completing this chapter, you’ll be able to:able to:
3.3. StateState the advantages of protectionism and free trade.
4.4. NameName types of trade barriers.
continued
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 4 of 62
Learning ObjectivesLearning ObjectivesAfter completing this chapter, you’ll be After completing this chapter, you’ll be able to:able to:
5.5. IdentifyIdentify some of the major trade alliances in the world today.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 5 of 62
Why It’s ImportantWhy It’s Important
Global trade doesn’t just influence business, it also affects all the countries and people of the world.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 6 of 62
Key WordsKey Words
multinational companyimportsexportsexchange ratebalance of tradeprotectionism
continued
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 7 of 62
Key WordsKey Words
tariffquotaembargofree trade
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 8 of 62
Global Producers Global Producers and Consumersand Consumers
We are all part of the global marketplace.
The global marketplace exists anywhere business crosses national borders.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 9 of 62
Global Producers Global Producers and Consumersand Consumers
Countries can satisfy their citizens’ wants and needs by buying them in the global market.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 10 of 62
The Global Marketplace The Global Marketplace A multinational corporation is a company that does business in many countries and has facilities and offices in many countries around the world.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 11 of 62
The Global Marketplace The Global Marketplace The global marketplace works much like a shopping mall or a supermarket.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 12 of 62
The Global Marketplace The Global Marketplace The United States is rich in resources—human, natural, and production—but it still needs things from other countries.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 13 of 62
Figure10.1 MAJOR EXPORTS AND IMPORTS OF THE UNITED STATES
Look at the graph to see what products the United States imports and exports.
Name the product that the United States exports more than it imports.
Source: Standard & Poor’s
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 14 of 62
Specialization Specialization Countries specialize in producing certain goods and services.
By specializing, countries can sell what they produce best so they can buy the products they need from other countries.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 15 of 62
Specialization Specialization The kinds of resources available to a country often influence what it specializes in producing.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 16 of 62
Specialization Specialization A country with little money or advanced technology but a large population might specialize in manual labor.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 17 of 62
Types of Trade Types of Trade Imports are goods and services that one country buys from another country.
Exports are goods and services that one country sells to another country.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 18 of 62
Types of Trade Types of Trade Other types of trade include:
• Investment• Exchange of human resources• Tourism• Military aid• Loans
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 19 of 62
Currency Currency Countries have to pay for each other’s products with currency. Currency is another name for money.
Just as countries use different lan-guages, they use different currencies, such as dollars, pesos, and yen.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 20 of 62
Currency Currency The foreign exchange market is made up of banks where different currencies are exchanged.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 21 of 62
Exchange Rates Exchange Rates The exchange rate is the price at which one currency can buy another currency.
Exchange rates change from day to day and from country to country.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 22 of 62
Exchange Rates Exchange Rates How much the currency of a country is worth depends on how many other countries want to buy its products.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 23 of 62
Prices Prices A company follows the change in exchange rates to find the best prices for products.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 24 of 62
Prices Prices When the value of a country’s currency goes up compared to another country’s, it has a favorable exchange rate.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 25 of 62
Prices Prices When the value of a country’s currency goes down compared to another country’s, it has an unfavorable exchange rate.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 26 of 62
Prices Prices Some countries choose to lower the value of their currency to bring in more business.
When this happens, it costs less to buy products from that country.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 27 of 62
Balance of Trade Balance of Trade Balance of trade is the difference in the value between how much a country imports and how much it exports.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 28 of 62
Balance of Trade Balance of Trade When a country exports more than it imports, it has a trade surplus.
When a country imports more than it exports, it has a trade deficit.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 29 of 62
Balance of Trade Balance of Trade A country can have an unfavorable balance of trade with one country and a favorable balance with another.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 30 of 62
Graphic OrganizerHow Exchange Rates Affect theHow Exchange Rates Affect theBalance of TradeBalance of Trade
Graphic OrganizerGraphic Organizer
WeakCurrency
FAVORABLEBALANCE
OFTRADE
Moreexports
thanimports
StrongCurrency
Moreimports
thanexports
NEGATIVEBALANCE
OFTRADE
Tradesurplus(leftovermoney)
Tradedeficit(debt)
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 31 of 62
1. Explain what trade is.
Type your answer here by highlighting this text. The paragraph will fill the space as you type.
2. Explain exchange rates.
Type your answer here by highlighting this text. The paragraph will fill the space as you type.
3. Why would a country want to devalue its currency?
Type your answer here by highlighting this text. The paragraph will fill the space as you type.
Name
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 32 of 62
Global Competition Global Competition Global competition often leads to trade disputes between countries.
At the heart of most trade disputes is whether there should be limits on trade.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 33 of 62
Protectionism Protectionism Protectionism is the practice of putting limits on foreign trade to protect businesses at home.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 34 of 62
Protectionism Protectionism Some of the reasons in favor of protectionism are:
• Foreign competition can lower the demand for products made at home.
continued
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 35 of 62
Protectionism Protectionism • Companies at home need to be
protected from unfair foreign competition.
• Industries that make products related to national defense need to be protected.
continued
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 36 of 62
Protectionism Protectionism • The use of cheap labor in other
countries can lower wages or threaten jobs at home.
• A country can become too dependent on another country for important products like oil, steel, or grain. continued
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 37 of 62
Protectionism Protectionism • Other countries might not have the
same environmental or human rights standards.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 38 of 62
Trade Barriers Trade Barriers To limit competition from other countries, governments put up trade barriers to keep foreign products out.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 39 of 62
Trade Barriers Trade Barriers A tariff is a tax placed on imports to increase their price in the domestic market.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 40 of 62
Trade Barriers Trade Barriers A quota is a limit placed on the quantities of a product that can be imported.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 41 of 62
Trade Barriers Trade Barriers An embargo is when the government decides to stop an import or export of a product.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 42 of 62
Many Asian markets are friendlier to smaller American companies. Consultant Robert Azar works with U.S. businesses that want to plant roots in Asia.
continued
The Friendly Asian Markets
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 43 of 62
According to Azar, Asian businesses may perceive a large company as a threat. In contrast, they often see smaller ones as someone they can join up with.
continued
The Friendly Asian Markets
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 44 of 62
This is good news for what type of business ownership?
Analyze
Type your answer here by highlighting this text. The paragraph will fill the space as you type.
Name
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 45 of 62
Free Trade Free Trade Supporters of free trade believe there should be no limits on trade.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 46 of 62
Free Trade Free Trade The benefits of free trade are:
• It opens up new markets in other countries.
• It creates new jobs, especially in areas related to global trade.
continued
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 47 of 62
Free Trade Free Trade
• Competition forces businesses to be more efficient and productive.
• Consumers have more choice in the variety, price, and quality of products.
continued
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 48 of 62
Free Trade Free Trade
• It promotes cultural understanding and cooperation between countries.
• It helps all countries raise their standard of living.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 49 of 62
Trade Alliances Trade Alliances To reduce limits on trade more countries are forming trade alliances with each other.
In a trade alliance, several countries merge their economies into one huge market.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 50 of 62
Trade Alliances Trade Alliances NAFTA (North American Free Trade Agreement) was controversial because some workers would be displaced when trade barriers were lowered.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 51 of 62
Trade Alliances Trade Alliances Some of the major trade alliances in the world today are:
• NAFTA • European Union (EU) • Association of Southeast Asian
Nations (ASEAN)
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 52 of 62
Figure10.2 MAP OF TRADE ALLIANCES IN THE WORLD
The European Union (EU) is the oldest and best-known economic community formed to promote free trade among the members of the community and to foster common economic policies.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 53 of 62
What nations make up the European Union?
Type your answer here. You may want to search online to find the answer.
Type your name here
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 54 of 62
International Business and International Business and Finance Affects EveryoneFinance Affects Everyone
Understanding international business and finance has become increasingly important for the consumer, wage earner, investor, citizen, and business leader.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 55 of 62
International Business and International Business and Finance Affects EveryoneFinance Affects Everyone
An understanding of international business helps you understand why goods and services are at particular prices.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 56 of 62
International Business and International Business and Finance Affects EveryoneFinance Affects Everyone
The business leader of tomorrow will have a good grasp of international business and finance.
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 57 of 62
Type your name here
1. What is a trade war?
Type your answer here2. What are some of the major trade alliances in the world
today?
Type your answer here
Name
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 58 of 62
As a restaurant owner, what kind of things might you import and export?
Type your answer here
Name
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 59 of 62
In the global marketplace, what is the importance of specialization?
continued
Name
Type your answer here
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 60 of 62
By expanding operations domestically and internationally, how does this affect the economies involved?
continued
Name
Type your answer here
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 61 of 62
How can a small company, like Panda Express, change domestic culture?
Name
Type your answer here
ChapteChapterr
1010
Introduction to Business, Business in a Global Economy Slide 62 of 62
• You now need to print out the pages with your answers. Please do not print all of this document as it is 62 pages. To print out the pages you need follow these instructions.
• Go to Print• Choose “Slides” and type in page numbers
31, 44, 53, 57, 58, 59, 60, 61 then press Print
• Make sure you have your name on each slide• Hand in to Ms. Lucas