INTERNATIONAL BUSINESS Think Globally!

International Business The exchange of _____ and ______ across international boundaries or territories. International business has an ________, ______, and _________ importance and has been on the rise in recent centuries. Globalization describes the process by which regional economies, societies, and cultures have become ________ through a _______ _______ of political ideas through communication, transportation, and ______.

GLOBALIZATION? SHOULD YOU? SHOULDN’T YOU? OR

Going Global “Self-Assessment” In order to avoid business globalization mistakes, what questions should companies ask themselves before deciding to go international? THINK AS AN Owner/CEO/President!!

Are there potential benefits for our company? Where will the benefits be shown? When would we realize them? Any evidence this has been done in a similar company?

Do we have the necessary Management Skills? What _______ are required to manage a ________________ company? Do we have a clear ______ _______of exhibiting these skills in the past? Do we know how to ________ ________ these skills?

Will the costs outweigh the benefits? What will it cost? Are the costs associated with globalization and its impact to the local performance worth it? What would be the most productive alternative use of all resources that we plan to devote to globalization?

GDP Gross Domestic Product Video one of the ways of measuring the size of a countries _________ defined as the _______ ________ _______ of all final goods and services produced within a country in a given period of time The most common approach to measuring and understanding GDP is the expenditure method: – GDP = ________ + __________ + __________ Spending + (Exports − Imports)

CPI Consumer Price Index Video A measure of price changes in consumer goods--also known as the “_______ ____ ________ index." Some CPI components are food, housing costs and transportation. To say that the CPI has _____ ___means that a given number of dollars ____ ___, or that the ____ __ ___has gone down.

Imports Vs. Exports Imports- Exports- USA’s leading Exports: USA’s leading Imports:

Tariff A tariff is a _____ on goods imported History Example: U.S. imposed tariffs on imported steel to drive up the cost. Without the tariff… What would have happened?

Embargo A government order ___________ the movement of merchant ships into or out of its ports. A prohibition by a government on certain or all trade with a ________ ________.