{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ch04 - > Chapter 4 Competing in Global Markets Goals...

Info icon This preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
> > > > > > > > Competing in Global Markets Chapter 4
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Explain international business and why nations trade. Discuss types of advantage in international trade. Describe measurements of international trade and exchange rates. Identify the major barriers that confront global businesses. Explain how international trade organizations and economic communities reduce barriers to international trade. Compare the different levels of involvement used by businesses when entering global markets. Distinguish between a global business strategy and a multidomestic business strategy. 1 2 3 4 5 6 7 Learning Goals
Image of page 2
Why Nations Trade Boosts economic growth Expands markets More efficient production systems Less reliance on economies of home nations Exports : Domestically produced goods and services sold in markets in other countries. Imports : Foreign-made products and services purchased by domestic consumers.
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Decisions to operate abroad depend upon availability, price, and quality of: Labor Natural resources Capital Entrepreneurship Companies can spread risk throughout nations International Sources of Factors of Production
Image of page 4
Size of the International Marketplace As developing nations expand into the global marketplace, opportunities grow Many developing countries have posted high growth rates of annual GDP United States 4.4% China 11.1% India 9.4%
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Though developing nations generally have lower per capita income, many have strong GDP growth rates and their huge populations can be lucrative markets. Population Size and Prosperity
Image of page 6
Top Ten Trading Partners With the United States
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Absolute advantage : Country can maintain a monopoly or produce at a lower cost than any competitor. Example: China’s domination of silk production for centuries. Comparative advantage : Country can supply a product more efficiently and at lower cost than it can supply other goods, compared with other countries. Example: India’s combination of a highly educated workforce and low wage scale. Absolute and Comparative Advantage
Image of page 8
Measuring Trade Between Nations Balance of trade : Difference between a nation’s imports and exports.
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern