Chapter 3: Exploring Global Business

Learning Objectives Explain the economic basis for international business. Discuss the restrictions nations place on international trade, the objectives of these restrictions, and their results. Outline the extent of international trade and identify the organizations working to foster it. Define the methods by which a firm can organize for and enter into international markets. Describe the various sources of export assistance. Identify the institutions that help firms and nations finance international business.

The Basis for International Business Absolute and Comparative Advantage Exporting and Importing 

Restrictions to International Business Types of Trade Restrictions Tariffs Nontariff Barriers Reasons for Trade Restrictions Reasons Against Trade Restrictions

The Extent of International Business The World Economic Outlook for Trade Canada and Western Europe Mexico and Latin America Japan Other Asian Countries Emerging Europe Commonwealth of Independent States Exports and the U.S. Economy

International Trade Agreements The General Agreement on Tariffs and Trade and the World Trade Organization The Kennedy Round (1964–1967) The Tokyo Round (1973–1979) The Uruguay Round (1986–1993) The Doha Round (2001) World Trade and Global Economic Crisis International Economic Organizations Working to Foster Trade  

Methods of Entering International Business Licensing Exporting Joint Ventures Totally Owned Facilities Strategic Alliances Trading Companies Countertrade Multinational Firms

Sources of Export Assistance National Export Strategy (NES) Trade Promotion Coordinating Committee (TPCC)

Financing International Business The Export-Import Bank of the United States Multilateral Development Banks The International Monetary Fund