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

Part 1
Business in a
Changing
World

© 2015 McGraw­Hill Education.


3-2

 
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


3-3

Learning Objectives
LO 3-1 Explore some of the factors within the international
trade environment that influence business.
LO 3-2
social,

Investigate some of the economic, legal-political,
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.


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Role of International Business


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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+


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


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Tariffs and Trade Restrictions

•

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

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Tariffs and Trade Restrictions


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Political & Technological Barriers


3-10

Trade Agreements and Organizations


3-11

Getting Involved


3-12

Getting Involved


3-13

Getting Involved

3-14

Getting Involved


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Getting Involved

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