3 Global Business
Coca-Cola
* International
business: all business activities
that involve exchanges across national borders
Name 10 products that you use that are international in nature:
* What
is the difference between absolute and comparative advantage?
A EXPORTING
and IMPORTING
Exporting: selling/shipping
to other nations
Importing: buying from
other nations and bringing those products into one’s own country
Balance of trade: EXPORTS
– IMPORTS for a period of time
Trade Deficit : A negative
balance of trade
Balance of Payments: MONEY
IN – MONEY OUT out of a country over a period of time
How do you rate the U.S. position in international trade?
B TRADE
RESTRICTIONS
1 Tariffs:
tax on a product entering a country
What is the difference between revenue protective tariffs and provide
an example.
What is dumping?
2 Non-tariff barriers:
a non tax measure to favor domestic products over foreign ones.
Import quota:
Embargo
Currency devaluation:
3 What are some reasons
for trade restrictions?
4 What are some reasons
against trade restrictions?
C THE
EXTENT OF INTERNATIONAL BUSINESS
1 US
2 Canada and Western
Europe
3 Mexico and South America
4 Asia
5 Europe and Russia
What is the EC?
D METHODS
1 Licensing
2 Exporing
3 Joint Ventures
4 Totally owned Facilities
5 Strategic Alliances
6 Trading Companies
7 Multinational Firms
E
SOURCES OF EXPORT ASSISTANCE