1. GLOBAL OPPORTUNITIES
Chapter 4

2. 4.1 Global Entrepreneurship
Describe the role of small business and entrepreneurship in today’s multicultural economy.
Explain why the global market is important.
Discuss how to recognize and examine current trends that provide both domestic and global opportunities for entrepreneurs.

3. Global Economy
The Global Economy: interconnected economies of the nations of the word
Importing: buying or bringing in goods from other countries to sell
Exporting: selling & shipping of goods to another country

4. Global Economy Small Business Today How did this happen?
Purchase goods/services in other countries
Sell goods/services in other countries
Competitors in other countries
How did this happen?

5. Global Economy Trade Barriers have fallen
World Trade Organization: global coalition of governments that make the rules of international trade
WTO works to eliminate/lessen trade barriers
WTO promote free trade

6. Global Economy
Trade Barrier: restriction on goods entering or leaving a country
Tariff: taxes imposed by a government on imported or exported goods
Question:
Why would a country impose trade Barriers?
Are all trade barriers Tariffs?

7. Global Economy North America Free Trade Agreement European Union (EU)
NAFTA
Makes exporting and importing among the US, Canada, and Mexico easier
European Union (EU)
Europe's Trading Bloc
Promote free trade and common currency

8. Global Economy http://www.youtube.com/watch?v=95EeUAvAba4
Technology Has Made the World Smaller
Communication
Information Processing
Transportation
Internet

9. Global Economy
Global Opportunities: operating an international business is different than a domestic business:
Countries have different economic systems, political systems, cultures, legal systems, and levels of development
Management is more complicated
Conducting business across borders requires an in-depth understanding of international trade and restrictions of foreign governments
Must have policies to deal with movements in exchange rates

10. Global Economy Asia Latin America enormous and diverse continent
many unique sophisticated societies
growing source of products/services
Latin America
Diverse community with many cultural differences
South America, Central America, and the Islands of Caribbean

11. Global Economy Europe Regions in Transition
Difficult market-no common culture
Cultural differences
Must segment market to succeed
Risk taking/business failure not acceptable
Regions in Transition
Developing countries provide shaky opportunities
Unstable governments
Many barriers, little support for business

12. 4.2 Ways to Enter the Global Market
Describe the benefits and risks of international trade.
Explain how to find the best international markets.
Compare and contrast importing and exporting.

13. Understanding International Business
Failure to prepare is preparing to fail!
Study Customs--Shows Respect
Allows you to modify your business practices to interact in the global marketplace

14. Tips for Showing Respect
Dress conservatively in dark colors (Asia: white is a symbol of mourning)
Do not correct the other person’s English (make an effort to learn key phrases)
Be prepared to remove your shoes in certain situations (respect)
Do not comment on food except to praise it
Do your homework before you do business (study country and customs)
Build relationships before you do business (build trust)
Bring your own interpreter
See pages 77 & 78

15. Strategies for Entering International Trade
US Census Bureau’s Guide to Foreign Trade Statistics ( )
Standard Industrial Trade Classification (SITC) Codes (products traded in specific countries)
International Trade Administration
International Business Exchange (IBEX)
Trade Missions
“Best Prospect List”

16. Importing & Exporting Decide on a Product to Export
Disposable Income
What products do other countries want?
Paper, electronics, chemical, apparel, industrial machinery, computers, and agricultural products
Import Opportunities
Low labor costs, found only in certain countries
Attend trade shows
Read trade publications
Research your market

17. Importing & Exporting Export Opportunities Entering the Global Market
Complicated: understand foreign county, build relationships
Entering the Global Market
Web site
Trade Intermediary
Establish a Foreign Joint Venture
License foreign business to sell your product
Use Export Management Company
Hire a Freight Forwarder

18. Importing & Exporting Government Regulations on International Trade
Over 100 federal agencies regulate imports & exports
US Customs Service: oversight on import requirements
US Census Bureau: on export requirements
Export Assistance Programs: complex process, offer programs to help

19. Importing & Exporting Things to Consider Before Going Global
Do you offer solutions? (70’s Japanese Cars)
Do you have a new idea? (UBER, LYFT)
Is there a market for your product or service? (China-Walmart)
How good are you at handling risk and frustration? (What foreign governments require to open a business)
Do you have any good contacts in other countries? (who do you know)

20. Global Opportunities Chapter Questions
Key Concepts
page 85, Questions 2-7
Critical Thinking
page 85, Questions 8-15
Write About It
page 85, Question 20
Academic Skills
page 86, Question 21
Ethical Practices
page 86, Question 25