INTERNATIONALBUSINESS

Think Globally!

International Business• The exchange of _____ and ______ across

international boundaries or territories. • International business has an ________,

______, and _________ importance and has been on the rise in recent centuries.

• Globalization describes the process by which regional economies, societies, and cultures have become ________ through a _______ _______ of political ideas through communication, transportation, and ______.

GLOBALIZATION?SHOULD YOU?

SHOULDN’T YOU?

OR

Going Global“Self-Assessment”

• In order to avoid business globalization mistakes, what questions should companies ask themselves before deciding to go international?

THINK AS AN Owner/CEO/President!!1.2.3.

Are there potential benefits for our company?

• Where will the benefits be shown?

• When would we realize them?

• Any evidence this has been done in a similar company?

Do we have the necessary Management Skills?

• What _______ are required to manage a ________________ company?

• Do we have a clear ______ _______of exhibiting these skills in the past?

• Do we know how to ________ ________ these skills?

Will the costs outweigh the benefits?

• What will it cost?

• Are the costs associated with globalization and its impact to the local performance worth it?

• What would be the most productive alternative use of all resources that we plan to devote to globalization?

GDPGross Domestic Product

• Video• one of the ways of measuring the size of a countries

_________• defined as the _______ ________ _______ of all

final goods and services produced within a country in a given period of time

• The most common approach to measuring and understanding GDP is the expenditure method:– GDP = ________ + __________ + __________ Spending

+ (Exports − Imports)

CPIConsumer Price Index

• Video• A measure of price changes in consumer

goods--also known as the “_______ ____ ________ index."

• Some CPI components are food, housing costs and transportation.

• To say that the CPI has _____ ___means that a given number of dollars ____ ___, or that the ____ __ ___has gone down.

Imports Vs. Exports

• Imports-• Exports-

• USA’s leading Exports:

• USA’s leading Imports:

Tariff

• A tariff is a _____ on goods imported • History Example: U.S. imposed tariffs on

imported steel to drive up the cost. • Without the tariff… What would have

happened?

Embargo

• A government order ___________ the movement of merchant ships into or out of its ports.

• A prohibition by a government on certain or all trade with a ________ ________.