Introduction to Business – Chapter 3
(Examples: South America – coffee, Saudi Arabia – oil production)
(If a country can maximize in more than 1 area then they must choose).
(Half of fish and crude oil are from other countries. 20-50% account for carpets, sugar, leather gloves, dishes, sewing machines. Without foreign trade, products may be unavailable or provided at a high price).
Balance of payments
1st sell labor wages
(Favorable Balance of Trade)
(Unfavorable Balance of Trade)
(Other forms take place in addition to goods and services – money, investments, tourism, deposits into banks).
(Everybody Thinks Edward is Entertainingly Interesting)
(George Likes Cats That Wear Necklaces)
(Computers Like Fingers Rapidly Clicking The Functions)
(People Genuinely Please Their Brothers)
(To express displeasure at the policies of the importing country.
To protect themselves.)
(To set amount per pound, gallon, or other unit.)
(To prevent sensitive products from falling into the hands of unfriendly groups or nations).
(Located around a seaport or airport.
Importer pays only when product leaves the zone).
(Ex. Europe, Latin America)
(The same product is sold in essentially the same matter throughout the world.
(Firms develop products and marketing strategies that adapt to the customs, tastes, and buying habits of a distinct national market.
Ex. Some restaurant chains employ a multinational strategy when they modify their menus to local tastes).
Foster understanding, communication, and respect.
Friendly international relations.
Worker dependence on the MNC.
(Production process, trademark, or brand name.
Low risk and low financial investment.
Ex. Nike, this is made by Nike but not an actual thing you can touch.)
(Enter into contracts to set up that business in other countries.
Same marketing elements are used.
Ex. Fast food companies, found all across the world.)
(Benefit – sharing of raw materials, shipping facilities.
Concerns – sharing profit, not as much control.
International Monetary Fraud – IMF.
Settles trade disputes
Enforces free – trade agreements
150 member countries
Lowering tariffs that discourage free trade.
Eliminating import quotas.
Reducing barriers for banks, insurance companies, and other financial services.
Assisting the poor countries with economic growth.)
Maintains an orderly system of world trade and exchange rates.
Includes more than 150 member nations.
(Today has more than 180 member countries and 2 main divisions:
International Development Association which makes loans to help developing countries.
International Finance Corporation which provides technical capital and technical help to private businesses in nations with limited resources).
Need essay sample on "Introduction to Business – Chapter 3"? We will write a custom essay sample specifically for you for only $ 13.90/page