Slides for south-western thompson ###PROJECT### CHECK PAGE 85 –Country cultural file - Taboos Role of family Business practices such as types of businesses

Slides for south-western thompson

###PROJECT###

• CHECK PAGE 85– Country cultural file -

• Taboos• Role of family• Business practices such as types of businesses

length of workday

– Should have information from page 16• Especially Geography, Economic Conditions

and now Cultural Factors


Homework

• Page 107

• Page 108 - 19, 21, 22

• Page 139

• Page 152 -1 & 2

• Page 169


Political Systems

• Democracy

• Socialist

• Communist

• Mixed Systems

http://en.wikipedia.org/wiki/List_of_countries_by_system_of_government


Comparison of GDP

• http://www.indexmundi.com/g/r.aspx?t=0&v=65

http://www.indexmundi.com/g/r.aspx?t=0&v=65











Political Risks in International Business

• How does government and/or their political systems effect international business?

• Trade sanctions read pg 95

• Expropriation -pg 96

• Economic nationalism

• Civil unrest or war


Laws that protect workers/ consumers

• OSHA• Child Labor• Labor Laws• Unions - Chap 13

• Trade Barriers• Tariffs• Quotas• Boycotts• Licensing• Taxes

http://en.wikipedia.org/wiki/Child_labour

http://www.dol.gov/dol/audience/aud-workers.htm

http://en.wikipedia.org/wiki/United_States_embargoes


• Reading Questions– When did large unions form? Why– Name some ways employers stopped union

efforts.– What Act gave the right to form unions– Name some ways unions help the employees.– Name countries that have had benefited by union

or labor unrest.– What are our two most common unions?– Why has union membership dropped in the last 50

years?– What country has the highest percentage of

unions now?


Union History

• Chapter 13 Read 344-345

• Vocab – Closed shop– Union Shop– Arbritration– Collective bargaining

• Find article on unions in your country


Chapter 13 – Organized Labor


A labor union is an organization of workers whose goal is improving

members’ working conditions, wages, and

benefits.


Members of the early unions

• goal was to prevent other workers from getting hired who were asking for lower wages.


In the early years government often sided

with employers and unions were described as “criminal

conspiracies”.

• Union members were described as communists.


The National Labor Act 1935 – right to form unions;

bargain with employers, and strike.

• Read 346-348


Union membership in the U.S. is about 14% of the

total workforce. In the 1950s it was almost 33%


Decline:

• Manufacturing is a smaller part of our economy.

• More service industries – unions have less experience organizing service industry.

• Government has made laws regarding minimum wage, working conditions, overtime and equal employment opportunities.


Achieving union representation

• A union representation election – find out whether workers want the union or not.

• Simple majority


• If the union wins the employer is required by law to refrain from making arrangements with individual workers. The employer can only negotiate with the union on matters such as worker’s pay, hours, benefits, problems and discipline.


Types of union representation


Union shop –

• all workers whether they want to be represented or not are ask to pay the union dues or a fee for the union to perform the tasks in collective bargaining.


Closed shop –

• employees are required to join the union before they are hired.

• These are generally illegal


Open shop –

• very rare – workers may or may not join the union and do not have to pay a fee if they choose not to.


Tools of labor negotiations

• Grievance procedure –


Arbitration –

• third party is called in to resolve the dispute. The decision of the arbitrator is final and binding.


Strike –

• the most powerful weapon a union has against an employer.


No-strike clause –

• this allows the company to continue to operate and address issues without interruption of work.

• P355 – 356


International Taxes

• Customs duty

• Sales tax

• Excise tax

• Payroll-related tax

• Value-added tax (VAT)

• Income taxes


Encouraging International Business

• Free-trade zones

• Most favored nation (MFN)

• Free-trade agreements

• Common markets


Tax Incentives

• Corporate tax deduction on income earned by foreign subsidiaries

• Double-taxation avoidance treaties

• Pg 103


Types of Business Ownership

• Sole Proprietorship• Partnership• Corporations• Municipal• Non-Profit• Cooperative

• LLP• S Corp

http://www.coollawyer.com/webfront/bizfilings/LLP.php


Multinational Companies

• Multinational companies - pg 127 - 129

• Characteristics of multinational companies– World-wide market view– Standardized product– Culturally-sensitive hiring– International and local perspective

• Concerns about multinational companies


Getting Involved in International Business

Low-Risk Methods• Indirect exporting• Direct exporting• Management

contracting• Licensing• Franchising

Higher-Risk Methods• Joint ventures• Foreign direct

investment– Wholly-owned

subsidiary


Importing and Exporting

• Every transaction involves shipping and payment terms

• Transportation costs can be a major portion of the cost of importing or exporting

• FOB, CIF, C&F

• Page 151 -153


Trade Agreements

• GATT

• WTO

• EU

• Pg 158 - 159


Types of Competitive Situations

• Pure Competition– Many seller, Same product

• Monopolistic Competition– Many sellers, slightly different product

• Oligopoly– Few sellers, slightly different product

• Monopoly– One seller, usually government regulated


The Short Course!!

• Accounting for Beginners– Two Forms - Balance Sheet and Income

Statement– Assets(what you own)=Liabilities(what you

owe) + Owners Equity(your net worth)– Revenue(Sales you make) - Expenses(bills

you pay) = Net Income


Chapter 9

• Start with 239


Financing a Small Business

• Analyzing costs– Variable costs– Fixed costs

• Breakeven point

• Sources of funds– Equity funds– Debt funds


Financial Records of Small Businesses

• Balance sheet

• Income statement

• Cash flow statement


Global Investment Opportunities

• Identifying potential investments

• Evaluating investment opportunities

• Rate of return

• Liquidity

• Taxes

• Safety




Beginning Operational Expenses

• wages, rent, supplies, advertising, and other monthly expenses.


Your largest asset may be your employees, they will also

be your largest expense.

Efficient payroll management helps keep your expenses down.


Expenses – • Cost of Goods Sold:

– the actual product costs of production of items or the buying of merchandise for resale.

• Operating Expenses: – wages, advertising, utilities, insurance, supplies,

etc.

• Living Expenses: – What will you need to live on while your business

is just getting started?


Income –

• profits or revenue generated by your business. You can estimate this by:– (Items sold * price = profits)*(day, month,

year)



• Cash Flow Statement

• estimate of the money coming in (revenue) verses the money going out (expenses).– This could be done on a weekly, bi-weekly

or monthly basis depending on the type of business.



###PROJECT###

• CHECK PAGE 171– Business Product description - – Market Potential

Documents

Slides for south-western thompson ###PROJECT### CHECK PAGE 85 –Country cultural file - Taboos Role of family Business practices such as types of businesses