Import & Export Basics Memory Reed Harris County High School June 2008

Imports And Exports What are imports? What are exports? Memory Reed Harris County High School June 2008

Are imports good or bad? Why? Are exports always good for our economy? How could they hurt our economy? Memory Reed Harris County High School June 2008

Growth Rate of U.S. Exports & Imports Trade Surplus Trade Deficit Service vs. Merchandise (goods) Big trade deficits – merchandise Trade surplus – services Combined service & merchandise imports & exports = dominant country in international trade Why? Memory Reed Harris County High School June 2008

Direct Investment Across Borders Imports and exports aren’t everything Direct Investment – The purchase of assets by individuals or companies in one country from individuals or companies in another country Assets – What are they? Memory Reed Harris County High School June 2008

Two Perspectives of Investment Foreign investments in the U.S. U.S. Direct Investment Abroad Memory Reed Harris County High School June 2008

Are increasing foreign investments good for the U.S.? Give control to firms in other countries – how could that affect us? Investment indicates confidence in the future of U.S. businesses Who invests in us the most? Japan Canada U.K. Memory Reed Harris County High School June 2008

Increased U.S. Investment in other Countries Canada Great Britain Germany The Netherlands Switzerland Japan Mexico Memory Reed Harris County High School June 2008

Multinational Companies Companies conducting business from bases in more than one country Are there any in our county? How many can we name? Memory Reed Harris County High School June 2008

Dimension of International Trade for the U.S. – Major Trading Partners Imports China Canada Mexico Japan Germany Exports Canada Mexico China Japan United Kingdom Memory Reed Harris County High School June 2008

A Developing Global Economy THE U.S. IS THE LARGEST ECONOMY! How do we know? How do we measure? GDP – Value of all goods & services produced within a nation GNP – Value of all goods & services produced by a nation inside & outside its borders Memory Reed Harris County High School June 2008

Per Capita? (Per Person) Gross Domestic Product Per Capita in 2007 Switzerland - $41,100 U.S. - $45,800 Japan - $33,600 Memory Reed Harris County High School June 2008

What is Happening? Interdependence among nations is increasing The result – One Global Economy Memory Reed Harris County High School June 2008

The Role of Marketing in International Trade Our Focus! Marketing – The process of creating exchanges of ideas, goods & services that satisfy individual and organizational goals. Marketing is involved beginning to end in business International vs. Domestic Marketing – What’s the difference? Where it takes place! Memory Reed Harris County High School June 2008

Functions of Marketing  Market planning  Product/service management  Distribution  Pricing  Promotion  Selling  Marketing-information management  Financing  Risk management Memory Reed Harris County High School June 2008

MARKETING CONCEPT (Important!) To have the right product or service in the right place (market), at the right time, for the right price, and supported by appropriate promotion. The above is also called the “Marketing Mix” (4 P’s) – Product – Price – Place – Promotion Memory Reed Harris County High School June 2008

International Marketing Using different techniques for achieving this marketing concept is often necessary in international markets because of the varied customs, legal regulations, political environments and economic conditions. Memory Reed Harris County High School June 2008

THE END!