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OVERVIEW, LEARNING OBJECTIVES, CLASS PREPARATION

CHAPTER 3-Exploring Global Business

OVERVIEW
In this chapter, we provide an overview of the issues involved in international trade. We state the rationale for international business in terms of specialization—that is, the absolute and comparative advantages that make trade among nations a matter of mutual benefit. We discuss exporting, importing, balance of trade, and balance of payments. We devote the next two sections of the chapter to an examination of trade restrictions. First, we introduce tariffs, import quotas, embargoes, foreign exchange controls, and currency devaluations; we also present arguments for and against such measures. Next, we describe the most important international organizations working to reduce trade barriers.

Then, we outline eight approaches by which a firm may enter international markets: licensing, exporting, joint ventures, totally owned facilities, strategic alliances, trading companies, countertrade, and multinational enterprises. Next, we describe the various sources of export assistance available from federal agencies. We close the chapter with a look at the institutions that offer financing for international operations, including the Export-Import Bank of the United States, multilateral development banks, and the International Monetary Fund.


Learning Objectives
After studying this chapter, students should be able to:
1. Explain the economic basis for international business.
2. Discuss the restrictions nations place on international trade, the objectives of these restrictions, and their results.
3. Outline the extent of international trade and identify the organizations working to foster it.
4. Define the methods by which a firm can organize for and enter into international markets.
5. Describe the various sources of export assistance.
6. Identify the institutions that help firms and nations finance international business.
Class Preparation

Format for Discussion Questions: Typed, (Question in bold) followed by double space and then your answer.
Assignments may be submitted in class paper copy, email, or via Blackboard.
Late assgnments will recieve a maximum of 50% credit

CLASS PREPARATION

READ Chapter 3, Video Case 3.1 Be prepared to discuss the questions at the end of the case
READ Running a business part I The Rise of Finagle a Bagel
Answer Discussion Questions 1,2,3

 
Crossword: Please download to desktop then open

 

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