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Understanding business 8th by mcchugh nickels chapter 03

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Competing in Global Markets... * In Billions Source: Source: Population Reference Bureau... * * Theories of Advantage Output per Unit of Input... * * Theories of Advantage Absolut e Out

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Competing

in Global Markets

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*

World Population by continent:

** The U.S is the largest importing nation in the World!

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*

In Billions

Source:

Source: Population Reference Bureau

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*

* Theories of Advantage

Output per Unit of Input

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*

* Theories of Advantage

Absolut e

Output per Unit of

Input

Diamond Production

South Africa

The Rest of the World

= = Virtual Virtual

Monopoly

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Singapore Savings Rate, Math/Science

Education, Political Trust

Sweden H.S Enrollment, Press Freedom,

Phone Access

Global Competitiveness

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*

*

U S Trade in Goods & Services (Billions)

Source: St Louis Business Monthly, Oct 1999 & World Trade Organization & Wikipedia

Balance of Trade

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*

*

Leading Goods Exporters/Importers

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*

*

Strategies for Reaching Global Markets

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*

Most Spoken Languages

in the U.S.

Most Spoken

Languages

in the World

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*

*

Foreign Direct Investments in the U.S.

Source: Bureau of Economic Analysis, 2004

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*

* What’s On Your Pizza

Costa Rica - Coconut

France - Bacon, onion and fresh cream

India - Pickled ginger, minced mutton and tofu

Australia - Shrimp and pineapple

Pakistan - Curry

Brazil - Green peas

Japan - Squid and mayo jaga

Source: World Features Syndicate

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Economic & Financial

Legal & Regulatory

Physical & Environmental

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Aesthetics

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*

In Turkey it’s rude to cross your arms

while you are facing someone.

In the Arab world the left hand is

considered unclean; don’t eat with it!

In India never pat someone’s head,

it’s the seat of the soul.

The Chinese associate gifts such as

straw sandals, clocks and handkerchiefs with funerals.

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*

Source: Gibson Consulting 2005

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r (Burma)

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*

*

Developing Countries Need Infrastructure

1.2 billion people lack clean

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General Agreement on Tariffs & Trade (1948)

Uruguay Round of GATT (1986)

World Trade Organization (1995)

Common Markets

European Union (EU)

Mercosur

North American Free Trade Agreement (1994)

Central America Free Trade Agreement (2005)

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*

* Future Global Trade

People’s Republic of China- Permanent Normal Trade

Relations/Rights

Russia & Others

Internet

Technology- Obstacles/Problems

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More focus on areas

where they can excel and

grow

Outsourced work creates

efficiencies, resulting in

hiring more workers

Fuels global market

growth

Con’s

Jobs lost/wages fall

Reduces product quality

Communication becomes much more difficult

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