tailieunhanh - Lecture Business: A changing world (4/e): Chapter 3 - O.C. Ferrell, Geoffrey Hirt

Chapter 3: Business in a borderless world. Learning objectives of this chapter include: Explore some of the factors within the international trade environment that influence business; investigate some of the economic, legal-political, social, cultural, and technological barriers to international business; specify some of the agreements, alliances, and organizations that may encourage trade across international boundaries; summarize the different levels of organizational involvement in international trade. | Chapter Three Business in a Borderless World International Business The buying, selling, and trading of goods and services across national boundaries. FAST FACT: McDonald’s serves 45 million customers a day at 29,000 restaurants in 120 countries. Absolute Advantage Absolute advantage exists when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item. Example: DeBeers Consolidated Mines, Ltd. (virtually controls the world’s diamond trade). Comparative Advantage Comparative advantage occurs when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items. Example: . agricultural commodities, such as corn and wheat. Importing & Exporting Selling to foreign markets Buying from foreign markets The U. S. Trade Deficit 1978-2008 (projected) Source: Exports and Imports of Goods and Services, 1978-2008, from . | Chapter Three Business in a Borderless World International Business The buying, selling, and trading of goods and services across national boundaries. FAST FACT: McDonald’s serves 45 million customers a day at 29,000 restaurants in 120 countries. Absolute Advantage Absolute advantage exists when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item. Example: DeBeers Consolidated Mines, Ltd. (virtually controls the world’s diamond trade). Comparative Advantage Comparative advantage occurs when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items. Example: . agricultural commodities, such as corn and wheat. Importing & Exporting Selling to foreign markets Buying from foreign markets The U. S. Trade Deficit 1978-2008 (projected) Source: Exports and Imports of Goods and Services, 1978-2008, from (accessed May 2, 2001) In $ Billions Top 10 Countries Maintaining Trade Deficits & Surpluses with the US Trade Deficit China Japan Canada Mexico Federal Republic of Germany Taiwan Malaysia Italy Republic of Korea Ireland Trade Surplus Netherlands United Kingdom Brazil Hong Kong Australia Belgium Singapore Switzerland Kenya Argentina 4-5 Source: “Top Ten Countries with which the . Has a Trade Deficit,” June 2001 from (accessed August 20, 2001) and “Top Ten countries with which the . Has A Trade Surplus,” June 2001 from (accessed August 20, 2001). International Barriers Economic Legal/political Social/cultural Technological Economic Barriers The level of a country’s economic development Industrialized nations – ., Japan, Great Britain Less-developed countries – Costa Rica The level of existing infrastructure Currency exchange rates Political & Legal .