Explain international trade considerations for sport/event industries. SEM II Objective 1.05 Explain international trade considerations for sport/event industries.

the impact of exchange rates Exchange rates: the value of one currency for the purpose of conversion to another Example: Dollar(United States) to Euro to Pound (Great Britain, Egypt, Lebanon, Sudan and Syria.) Exchange rates have a direct effect on the power of a team's payroll

Trade Restrictions Trade restrictions are regulations, policies and actions that limit trade among nations. Example: Trade restrictions are barriers that a nation imposes, which hinders a sporting-goods manufacturer's ability to do business in other nations.

Types of Trade Restrictions Tariffs: taxes placed on imported goods Quotas: limit the quantity of goods that move into or out of the country. Licenses: permits that a nation grants to businesses that want to import or export goods. Some nations limit the number of licenses they grant. Embargoes: A policy that suspends all import- export trade with another country.

Question?????? Suppose the sporting-goods manufacturer wants to sell baseball gloves to a business in another country that has a very high tariff (tax) on sporting-goods. If the tariff is too high, the costs (taxes) may exceed the benefits (e.g., profits) of selling the baseball mitts to businesses in the other country.

impact of government regulation In addition to domestic restrictions, international businesses must deal with a range of additional government rules regulating international trade. Tariffs, import quotas and prohibition issues are all facts of life for importers. The restrictions could cause barriers and negative impacts to international sport marketing.

how cultural/value differences impact international sport marketing. Methods of communication vary among cultures

Imagine that you are responsible for taking players or celebrities to perform in another country. Prepare a handbook for them to facilitate the trip. Address the following: a. The country to which the players or celebrities will be going b. The impact exchange rates will have on the sport/event c. The trade regulations that will affect international sport/event marketing d. The government regulations that will impact international sport/event marketing e. The cultural/value differences that will impact international sport/event marketing