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 (or globalisation) describes the process by which regional economies, societies, and cultures have become ________ through a _______ _______ of political ideas through communication, transportation, and ______.

Economic Globalization Should You? Shouldn’t You?

Going Global “Self-Assessment”  In order to avoid business globalization mistakes, what questions should companies ask themselves before deciding to go international? (come up with three) –Think as business owners, C.E.O.’s, managers or any other major stakeholder within a company or organization.

Questions to ask…  #1  #2  #3

GDP  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)

GNP  Gross National Product - Measures national _________ and _________  Used estimate the value of ________ and __________ produced in an economy.

CPI  Consumer Price Index: 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.

USA - Imports and 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 __________ by a government on certain or all trade with a foreign nation.

Carnet  A carnet is a document allowing the importation of certain goods to countries without paying a _____ – Two types exist:  A temporary one for the importation of ________ and __________.  One for motor vehicles.

Duty  A ____ levied by a government on the _______ or _______ of goods.  Note: The U.S. Constitution forbids the levying of taxes by the U.S. on exports. However, most foreign governments do not have this restriction!

Bill of Lading  a document issued by a carrier that lists the ________being shipped and ________ the terms of their transport  Also, acts as a _______ for the goods, a ________ for the transport of the goods, and a document of title showing that the person in possession of the bill has title to the goods.

Dumping  The sale of goods in a foreign country at _____ than" ______ ______" –(a price lower than that at which it is sold within the exporting country or to third countries)

Phytosanitary Inspection Certificate  A certificate, issued by the ______ _________ of ___________ indicating that a U.S. shipment has been ___________ and is free from harmful pests and plant diseases.

Quota  A __________ on the ________ of goods that may be ___________ into a country from all countries or from specific countries during a set period of time.  Export quotas have similar restrictions

Tare Weight  The weight of an ________ gas cylinder without cap and valve  This can be useful in computing the cost of the goods carried for purposes of a tariff for related to barge, rail, road, or other traffic, especially where the tariff will vary with the value of the goods carried  Example: Cost of taking goods through the Erie Canal