1 / 20

International Business Chapter 7

International Business Chapter 7. Ms. Butler Business Essentials. 7.2: The Global Economy. You will learn: How NAFTA has increased international trade within North America. How managers decide how to get involved in the global economy.

judah-garza
Download Presentation

International Business Chapter 7

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. International BusinessChapter 7 Ms. Butler Business Essentials

  2. 7.2: The Global Economy • You will learn: • How NAFTA has increased international trade within North America. • How managers decide how to get involved in the global economy. • How managers deal with the challenges they face when working in a different culture.

  3. Standards • BCS-BE-6: The student demonstrates an understanding of basic business concepts and how they are applied to business activities. • BCS-BE-7: The student utilizes technology in a variety of ways while solving business problems. • BCS-BE-8:the student analyzes how international business impacts business

  4. Essential Questions… • How has the Internet made it easier to market products? • Why are international trade agreements necessary? • How would you prepare yourself if you were sent overseas to do business in a foreign country? • Why would it be important for a manager to know how business is conducted in another country if they desire to enter that particular market?

  5. Key Terms… • Global Economy • Free Trade Areas • Law of Comparative Advantage • NAFTA • Foreign Intermediary • Licensing Agreement • Strategic Alliance • Multinational Corporations

  6. Global Economy • Definition: an economy in which companies compete actively with businesses from all over the world. • Improvements in Telecommunications Technology • Political Changes • Free Trade Areas

  7. Improvements in Telecommunications Technology • Improvements in telecommunications technology have had an enormous impact on international trade. • Developments of the Internet has led to e-commerce. • Enables small companies to reach foreign consumers.

  8. Political Changes • Increased opportunities for business. • American companies were able to sell billions of dollars worth of products/services in markets they were once excluded from.

  9. Definition: a region within which trade restrictions are reduced or eliminated. Free Trade Areas

  10. NAFTA • North American Free Trade Agreement • Businesses in the United States, Mexico and Canada can sell their products anywhere in North America without facing trade restrictions. • Increased exports within North America • Reduced workforces because of lower labor costs

  11. <<<CHECKPOINT>>> • How has the Internet made it easier to market products? • Why are international trade agreements necessary?

  12. Forms of International Operations • Foreign intermediary: a wholesaler or agent who markets products for companies that want to do business abroad. • Licensing agreement: an agreement that permits one company to sell another company’s products abroad in return for a percentage of the company’s revenues.

  13. Licensing Agreement (CONT.) • TGI Friday’s has used licensing agreements to expand its operations overseas. • What do you think were the advantages and disadvantages of TGI Friday’s signing of foreign licensing agreements?

  14. Forming a Strategic Alliance • Definition: pooling resources and skills in order to achieve a common goal. • Daimler-Benz + Chrysler = Daimler-Chrysler • What other strategic alliances can you think of? • What are some of the benefits of forming a strategic alliance?

  15. Multinational Corporations • Definition: Companies that have manufacturing and distribution facilities in foreign countries. • Imported Materials • International Production • International Sales

  16. Classwork…YIPEEEEEE!!! • What factors do you think might make an American businessperson support or oppose NAFTA? • What are some of the challenges business managers who work in foreign countries face?

  17. Group-work • Pick 2 companies that you think will make a wonderful strategic alliance. • Create a new name • Create a new logo • What reasons would these 2 companies make a good strategic alliance?

  18. Example #1… Pepsi + Kool-Aid = Pep-Aid • Would be able to expand brands in each segment • Would corner the soft drink market • Increase market share for Pepsi and Kool-Aid • Increase brand awareness

  19. Example #2 Metro PCS and Sprint/Nextel = Sprint PCS • Would capture larger market share • Would be able to offer more products to consumers • Would be able to offer cheaper services to consumers

  20. Have a TERRIFIC THURSDAY!!!

More Related