Business Management

Today’s Objectives Describe the effect of a global marketplace on business, including  Changes in American business operations  Basic business concerns & variables in business competition

Globalization  The worldwide movement toward economic, financial, trade, and communications integration  Implies that we are more interconnected and interdependent

What does it mean for business? Emphasis on the transfer of capital, goods, and services across national frontiers

Here in the United States…  You could purchase domestic goods that are products made by firms in the United States.  You could purchase foreign goods that are products made by firms in other countries.

How much of what you’re wearing is really Made in America?Made in America BINGO!

Why do we seem to have more foreign goods from some countries over others? Think About It

Trade Agreements Free-trade agreements are international agreements that eliminate almost all trade restrictions and subsidies between individual countries and groups of countries.

This helps with…  Importing – buying goods or services made in a foreign country  Exporting – when a company sells its goods and services to a foreign country

Does the United States typically IMPORT or EXPORT more goods? Think About It

Effect on American Businesses  More e-commerce  doing business online  Decrease of production jobs  Rapid growth of service jobs

Businesses are concerned with…  Production costs  Product quality  Service quality  Sales volume  Profit margins

Do Work…