1 / 14

POB 1.03 Part 2

POB 1.03 Part 2. Understand business in the global marketplace. What Factors Impact the International Business Environment?. Geography Culture Economy Political & legal Concerns. Geographic Factors. Location Climate Terrain Seaports Natural Resources. Cultural Factors.

lillith-best
Download Presentation

POB 1.03 Part 2

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. POB 1.03 Part 2 Understand business in the global marketplace.

  2. What Factors Impact the International Business Environment? • Geography • Culture • Economy • Political & legal Concerns

  3. Geographic Factors • Location • Climate • Terrain • Seaports • Natural Resources

  4. Cultural Factors • Culture – accepted behaviors, customs and values of a society • Factors include … • Language • Religion • Values • Customs • Social relationships

  5. Economic Factors • What are the differences in the living and work environments? • 3 Key Effects: • Literacy Level – better ed = more & better products for citizens • Technology – automated production, distribution and communication = ability to create and deliver products quickly • Agricultural Dependency – usually either heavy ag focus or manufacturing • Infrastructure: nation’s transportation, communication, and utility systems

  6. Political and Legal Factors • Regulations on advertising and the enforcement of contracts • Safety inspections • Type of government, stability of government and policies towards businesses

  7. What are trade barriers? • Trade barrier – a restriction to free trade • Formal barriers • Embargo • Quota • Tariff • Informal barriers • Culture • Tradition • Religion

  8. Embargo • Embargo – an action imposed by a government to stop the export or import of a product completely • Why? • To protect its own industries from international competition • Prevent products from getting to other countries (ex: defense weapons) • Express disapproval of actions/policies

  9. Quota • Quota – limit on the quantity of a product that may be imported or exported within a given time period • Why? • To keep prices stable (high) • Express displeasure toward a country • Protect its own country’s industry

  10. Tariff • Tariff – tax the government places on certain imported goods and services • Why? • Increase the price of a good • High tariff lowers demand and reduces the amount imported

  11. Encouraging International Trade • A few things that encourage international trade • Common Markets • Free-Trade Agreements • Free-Trade Zones

  12. Common Markets • In a common market, the member countries do away with the duties and other trade barriers • AKA “economic community” • Examples: European Union (EU), Latin American Integration Association (LAIA)

  13. Free-Trade Agreements • In a Free-Trade Agreement, member countries agree to remove the duties and trade barriers on products traded among them • Example: North American Free Trade Agreement (NAFTA) 1993

  14. Free Trade Zone • A Free Trade Zone is a selected are where products can be imported duty free and then stored, assembled, and/or used in manufacturing • Usually near a seaport or airport • Importer pays duties when items leave the zone

More Related