Global Opportunities Glencoe Entrepreneurship: Building a Business Global Entrepreneurship Ways to Enter the Global Market 4.1 Section 4.2 Section 4 4

Glencoe Entrepreneurship: Building a Business Global Entrepreneurship SECTION 4.1 Chapter 4 Global Opportunities Describe the role of entrepreneurship in today’s multicultural, global economy. Explain why the global market is important. List current trends that provide both domestic and global opportunities for entrepreneurs. Section Objectives

Glencoe Entrepreneurship: Building a Business Global Entrepreneurship SECTION 4.1 Chapter 4 Global Opportunities The countries of the world are linked in a global economy made possible by free trade agreements and advances in communication technology. International markets present opportunities in all regions of the world. The Main Idea

Glencoe Entrepreneurship: Building a Business Global Entrepreneurship SECTION 4.1 Chapter 4 Global Opportunities Content Vocabulary global economy exporting importing trade barrier tariff gross domestic product (GDP)

Glencoe Entrepreneurship: Building a Business Global Entrepreneurship SECTION 4.1 Chapter 4 Global Opportunities The Global Economy Entrepreneurship plays an important role in today’s multicultural global society. Technological advances and changes in trade barriers have created a global economy. global economy the interconnected economies of the nations of the world

Glencoe Entrepreneurship: Building a Business Global Entrepreneurship SECTION 4.1 Chapter 4 Global Opportunities The Global Economy International markets provide opportunities for entrepreneurs to engage in importing and exporting goods and services. importing the buying or bringing in goods from other countries to sell exporting the selling and shipping of goods to other countries

Glencoe Entrepreneurship: Building a Business Global Entrepreneurship SECTION 4.1 Chapter 4 Global Opportunities The World Trade Organization is a global coalition of governments that makes the rules that govern international trade. Trade Barriers Have Fallen

Glencoe Entrepreneurship: Building a Business Global Entrepreneurship SECTION 4.1 Chapter 4 Global Opportunities Trade Barriers Have Fallen The World Trade Organization works to eliminate or lessen trade barriers and tariffs. trade barriers restrictions on goods entering or leaving a country tariffs a type of trade barrier imposed by a government as a tax on imported or exported goods

Glencoe Entrepreneurship: Building a Business Global Entrepreneurship SECTION 4.1 Chapter 4 Global Opportunities Global Opportunities A nation’s economy is measured by its gross domestic product (GDP). Gross domestic product (GDP) the total value of all goods produced in a country during the year

Glencoe Entrepreneurship: Building a Business Global Entrepreneurship SECTION 4.1 Chapter 4 Global Opportunities After You Read 1.Describe the role of small business and entrepreneurship in today’s multicultural, global economy. Small businesses and entrepreneurs are going global to take advantage of the opportunities to do business with other countries.

Glencoe Entrepreneurship: Building a Business Global Entrepreneurship SECTION 4.1 Chapter 4 Global Opportunities After You Read 2.Explain why the global market is important. The global market holds many opportunities for growing businesses because it is many times the size of the U.S. market.

Glencoe Entrepreneurship: Building a Business Global Entrepreneurship SECTION 4.1 Chapter 4 Global Opportunities After You Read 3.Discuss how the global market provides domestic and global opportunities for entrepreneurs. Opportunities lie in every part of the world where customers need or want products made in the United States and from which products not found in the United States can be imported. Huge opportunities are available in Asia, Latin America, and Europe and in developing nations.

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities Identify the benefits and risks of international trade. Explain how to find the best international markets. Compare and contrast importing and exporting. Section Objectives

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities To conduct international business successfully, you must understand foreign customs and cultures. Whether you choose to import or export products, the international market presents many profitable business opportunities. The Main Idea

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities Content Vocabulary interpreter Standard Industrial Trade Classification (SITC) codes International Business Exchange (IBEX) trade missions “best prospect” list disposable income trade intermediary foreign joint venture export management company freight forwarder

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities Understanding how other countries conduct business is important to your success as an entrepreneur. Understanding International Business

Tips for Showing Respect 17 Dress conservatively. Do not correct other people’s language. Be prepared to remove your shoes in some situations. Respect different tastes in food. Do your homework before the first meeting. Build a relationship before you do business. If necessary, bring an interpreter.

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities Tips for Showing Respect It is important to show respect and understanding for the cultures of the people with whom you do business. An interpreter will help ensure that your communications to others are accurate. interpreter a person who translates one language into or from another

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities Strategies for Entering International Markets One good resource in finding an international market for your product or service is using Standard Industrial Trade Classification (SITC) codes. Standard Industrial Trade Classification (SITC) codes a system that details the kinds of products that are traded in specific countries and how well certain products sell in different markets

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities Other Sources of Help There are many sources to help entrepreneurs locate the best market for their products or services. Entrepreneurs who want to sell online should contact the U.S. Chamber of Commerce regarding its International Business Exchange (IBEX). International Business Exchange (IBEX) the electronic commerce system that allows businesses to find trading partners and sell products and services anywhere in the world

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities Other Sources of Help A small business with products on the government’s “best prospect” list will gain the chance to go on a trade mission. “best prospect” list a list compiled by the government of products that other countries want to purchase trade mission an opportunity offered by the U.S. government and private agencies to small businesses to travel to other countries to meet with foreign agents, distributors, or potential business partners

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities Deciding on a Product to Export To be successful as an exporter of consumer products, it helps to market to countries to sell where people have enough disposable income. disposable income money people have to spend after paying for necessary expenses

Research the market. Talk to potential customers. Where to Find Import Opportunities 23 Attend trade shows. Read trade publications and catalogs.

Use a trade intermediary. License foreign businesses to sell your products. Where to Find Export Opportunities 24 Establish an e-commerce web site. Establish a foreign joint venture. Hire a freight forwarder. Use an export management company.

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities Deciding on a Product to Export An entrepreneur can expand a business into a foreign market by using a trade intermediary. trade intermediary an agency that serves as a distributor in a foreign country

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities Where to Find Export Opportunities Some entrepreneurs find it helpful to establish a foreign joint venture in order to gain entry into a new global market. foreign joint venture an alliance between an American small business and a company in another nation

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities Where to Find Export Opportunities An entrepreneur wishing to export goods or services to another country may employ the services of an export management company and/or a freight forwarder. export management an organization that handles all of the tasks related to exporting for a manufacturer freight forwarder a company that arranges shipments and prepares necessary exporting paperwork

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities When entrepreneurs think about going global they should make sure they have: solutions a new idea a market for the product or service the ability to handle risk and frustration good contacts in other countries Things to Consider Before Going Global

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities After You Read 1.Describe the benefits and risks of international trade. The benefits of international trade include being able to purchase goods or services from and sell them to other countries and to manufacture in other countries. Countries with unstable governments provide a riskier form of opportunity; there are many barriers and little government support for business owners.

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities After You Read 2.Explain how to find the best international markets. The U.S. Census Bureau’s Guide to Foreign Trade Statistics helps in locating sources for various trade statistics. Standard Industrial Trade Classification (SITC) codes tell what kinds of products are traded in specific countries.

Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business SECTION 4.2 Chapter 4 Global Opportunities After You Read 3.Compare and contrast importing and exporting. Importing is buying products from other countries to resell in your own country. Exporting is selling and shipping goods to other countries.

Global Opportunities Glencoe Entrepreneurship: Building a Business Global Entrepreneurship Ways to Enter the Global Market 4.1 Section 4.2 Section 4 4 End of Chapter 4 Global Opportunities