Copyright © 2007 South-Western. All rights reserved. Chapter 4 Assessing Global Conditions.

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Presentation transcript:

Copyright © 2007 South-Western. All rights reserved. Chapter 4 Assessing Global Conditions

Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Learning Objectives Assessing Global Conditions Exchange RateMotives Characteristics Conducting Barriers

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. The Key Decisions in Running a Business

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Motives for International Motives Conducting Barriers Characteristics Exchange Rate Foreign Demand Technology Resources Diversification Combination of Motives

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Importing & Exporting Motives Conducting Barriers Characteristics Exchange Rate Exporting Importing Tariff Quota Internet

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Balance of Trade Motives Conducting Barriers Characteristics Exchange Rate

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Direct Foreign Investment Motives Conducting Barriers Characteristics Exchange Rate Transportation Barriers Technology Lower Costs

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Outsourcing Motives Conducting Barriers Characteristics Exchange Rate Lower Cost Labor

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Strategic Alliances Motives Conducting Barriers Characteristics Exchange Rate Strategic Alliances Joint Venture International Licensing

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Barriers to International Business Motives Conducting Barriers Characteristics Exchange Rate NAFTA GATT - WTO Latin America European Union Reduction in Barriers

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Protection Remaining Barriers Motives Conducting Barriers Characteristics Exchange Rate Punishment

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Disagreements Motives Conducting Barriers Characteristics Exchange Rate Environment Labor Bribery Taxation

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Foreign Characteristics Motives Conducting Barriers Characteristic s Exchange Rate Culture

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Economic Systems Motives Conducting Barriers Characteristic s Exchange Rate Capitalism Communism Socialism

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Economic Conditions Motives Conducting Barriers Characteristic s Exchange Rate Insert Exhibit 4.4 from pg 130 Economic Growth Sensitivity

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Political RiskCorruption Risk & Regulation Motives Conducting Barriers Characteristic s Exchange Rate

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Importance of Exchange Motives Conducting Barriers Characteristics Exchange Rate Insert Exhibit 4.6 from page 135

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Value of the Dollar Motives Conducting Barriers Characteristics Exchange Rate Stronger Appreciate Weaker Depreciate

Assessing Global Conditions Portion of Graphic from pg 106 will go here Copyright © 2007 South-Western. All rights reserved. Hedging Motives Conducting Barriers Characteristics Exchange Rate Time  Spot Rate Forward Rate