Lecture Business (4/e): Chapter 3 - Ferrell, Hirt, Ferrell

Chapter 3 - Business in a borderless world. Learning objectives of this chapter include: Explore some of the factors within the international trade environment that influence business; investigate some of the economic, legal-political, social, cultural, and technological barriers to international business; specify some of the agreements, alliances, and organizations that may encourage trade across international boundaries; summarize the different levels of organizational involvement in international trade.

Part 1

Business in a

Changing

World

© 2015 McGraw­Hill Education.

CHAPTER 1 The Dynamics of Business and Economics

CHAPTER 2 Business Ethics and Social Responsibility

CHAPTER 2

APPENDIX The Legal and Regulatory Environment

CHAPTER 3 Business in a Borderless World

Learning Objectives

LO 3-1 Explore some of the factors within the international

trade environment that influence business

LO 3-2 Investigate some of the economic, legal-political,

social, cultural and technological barriers to international

business

LO 3-3 Specify some of the agreements, alliances and

organizations that may encourage trade across international boundaries

LO 3-4 Summarize the different levels of organizational

involvement in international trade

LO 3-5 Contrast two basic strategies used in international

business

3-3

Role of International Business

Role of International Business

Exporting – the sale of goods and

services to foreign markets

2011 U.S exports = $2.1 trillion+

Importing – the purchase of goods

and services from foreign markets

2011 U.S imports = $2.6 trillion+

Economic Barriers

Level of development is determined in part by a country’s

Tariffs and Trade Restrictions

3-7

• Fixed tariff is a specific amount of money levied on

each unit of product brought into the country

• Ad valorem tariff is based on the value of the item

Tariffs and Trade Restrictions

Political & Technological Barriers

3-9

Trade Agreements and Organizations

Getting Involved

3-11

Getting Involved

Getting Involved

3-13

Getting Involved

Getting Involved

3-15

A strategy that involves

standardizing products

(promotion and distribution) for

the whole world as if it were a

single entity

A plan used by international companies that involves customizing products, promotion and distribution according to cultural technological, regional and national differences