Chapter 4

Chapter 4 - CONTEMPORARY BUSINESS Chapter Outline CHAPTER...

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CONTEMPORARY BUSINESS Chapter Outline CHAPTER 4: COMPETING IN GLOBAL MARKETS Opening Chapter Page The fourth chapter of the new 12th edition travels through the world of international business to look at the ways in which both large and small companies approach globalization. First, it considers the reasons nations trade, the importance and characteristics of the global marketplace, and the ways nations measure international trade. It looks at how both U.S. and foreign companies see the importance of trade for their success, and how firms are becoming more independent as they branch out into world markets. The chapter focuses on why foreign sales are essential to U.S. manufacturing, agriculture, and service industries today, and tracks information on the thousands of products that cross national borders daily. Exports and imports are discussed in detail—they now make up about 25 percent of the gross domestic product (GDP) in the U.S. With recent record highs—more than $1.1 trillion in exports and nearly $1.8 trillion in imports—the total for foreign trade has more than doubled in only a decade. Chapter 4 then examines barriers to international trade that arise from cultural and environmental differences. To combat these barriers, nations turn to organizations that promote international trade and the multinational agreements designed to encourage it. Finally, it looks at how firms implement global business strategies and the ways in which recent trends in investment and offshoring affect these decisions. Learning Goal 1: Explain the importance of international business and the primary reasons nations trade. Key Terms exports / imports Class Notes / Lecture Outline Chapter Opening Opening vignette – “These Boots Are Made for Working —Internationally.” Discuss how Red Wing is unique in several ways – it represents an American company that sells most of its goods overseas, as well as one that has little competition in America. 124
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Basic PowerPoint 1 Expanded PowerPoint 1 1. Understanding international trade Basic PowerPoint 2 Expanded PowerPoint 2 a. U.S. and foreign companies recognize the importance of international trade for their success b. Companies are becoming more independent as they branch out into world markets c. Foreign sales are essential to U.S. manufacturing, agriculture, and service industries, as thousands of products cross national borders daily i. Exports are domestically produced goods and services sold in other countries ii. Imports are foreign-made products and services purchased by domestic customers iii. Exports and imports now make up about 25 percent of the gross domestic product (GDP) in the U.S. iv. Record highs have been seen recently—more than $1.1 trillion in exports and nearly $1.8 trillion in imports v. That total for foreign trade is more than double what it was only a decade ago d. This increasing volume of global transactions brings with it cultural, social, language and economic issues of multiple nations
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Chapter 4 - CONTEMPORARY BUSINESS Chapter Outline CHAPTER...

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