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Chapter 4

Assessing Global Conditions

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Assessing Global Conditions

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here

Learning Objectives

Assessing GlobalConditions

Exchange Rate Motives

Characteristics Conducting

Barriers

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Assessing Global Conditions

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The Key Decisions in Running a Business

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Assessing Global Conditions

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Motives for International

MotivesConductingBarriersCharacteristicsExchange Rate

Foreign Demand

Technology

Resources

Diversification

Combination of Motives

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Assessing Global Conditions

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Importing & Exporting

MotivesConductingBarriersCharacteristicsExchange Rate

Exporting

Importing

Tariff

Quota

Internet

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Assessing Global Conditions

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Balance of Trade

MotivesConductingBarriersCharacteristicsExchange Rate

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Assessing Global Conditions

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Direct Foreign Investment

MotivesConductingBarriersCharacteristicsExchange Rate

Lower CostsTechnologyBarriersTransportation

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Assessing Global Conditions

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Outsourcing

MotivesConductingBarriersCharacteristicsExchange Rate

Lower Cost Labor

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Assessing Global Conditions

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Strategic Alliances

MotivesConductingBarriersCharacteristicsExchange Rate

Strategic Alliances

Joint Venture

International Licensing

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Assessing Global Conditions

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Barriers to International Business

MotivesConductingBarriersCharacteristicsExchange Rate

NAFTA

GATT - WTO

Latin America

European Union

Reduction in Barriers

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Assessing Global Conditions

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Protection

Remaining Barriers

MotivesConductingBarriersCharacteristicsExchange Rate

Punishment

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Assessing Global Conditions

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Disagreements

MotivesConductingBarriersCharacteristicsExchange Rate

Environment

Labor

Bribery

Taxation

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Assessing Global Conditions

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Foreign Characteristics

MotivesConductingBarriersCharacteristicsExchange Rate

Culture

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Assessing Global Conditions

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Economic Systems

MotivesConductingBarriersCharacteristicsExchange Rate

Capitalism

Communism

Socialism

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Assessing Global Conditions

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Economic Conditions

MotivesConductingBarriersCharacteristicsExchange Rate

Insert Exhibit 4.4 from pg 130

Econ

om

icG

row

th

Sensitivity

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Assessing Global Conditions

Portion of Graphic from pg 106 will go

here

PoliticalRisk Corruption

Risk & Regulation

MotivesConductingBarriersCharacteristicsExchange Rate

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Assessing Global Conditions

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Importance of Exchange

MotivesConductingBarriersCharacteristicsExchange Rate Insert Exhibit 4.6

from page 135

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Assessing Global Conditions

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Value of the Dollar

MotivesConductingBarriersCharacteristicsExchange Rate

StrongerAppreciate

WeakerDepreciate

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Assessing Global Conditions

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Hedging

MotivesConductingBarriersCharacteristicsExchange Rate

Time S

pot R

ate

Forw

ard

R

ate