1. Global Marketplace
3-2

2. Businesses Must Consider…
Geography
Cultural Influences
Economic Development
Political and Legal Concerns

3. Geography
Location
Climate
Terrain
Seaports
Natural Resources

4. Cultural Influences
Culture is accepted behaviors, customs, and values of a society.
This can include
Language, religion, values, customs, and social relationships

5. Economic Development Literacy Level Technology Agricultural Dependency
Education system is a good indicator
Technology
Agricultural Dependency
Infrastructure
Transportation, communication, and utility systems

6. Political and Legal Concerns
Government regulates
Advertising
Products
Contracts

7. International Trade Barriers
Trade Barriers: restrictions to free trade
Formal Trade Barriers
Quotas
Tariffs
Embargoes
Informal Trade Barriers
Culture
Traditions
Religions

8. Quotas
Limit on the quantity of a product that may be imported or exported
Control supply and as a result market price
Bad relationships
Limit competition
U.S. has imposed quotas on
Sugar, cattle, dairy products, and textiles

9. Tariffs Tax that government places on certain imported products
Why do we have tariffs?
Designed to increase the price of imported goods

10. Embargoes Stop the export or import of a product completely
Why would this be done?
Protect their own industries against foreign competition
Control who gets the product
Bad relationships

11. Free-Trade Zones Promotes international business
Area where products can be imported and then stored
Usually near seaports or airports
Tax is only paid once the product leaves the zone

12. Free-Trade Agreements
Countries can set up free-trade agreements with other countries
Remove formal barriers
NAFTA
Designed to enlarge markets and economic bases

13. Common Markets Members do away with trade barriers
Share the same policy on external barriers
European Union (EU)
Expand trade
Promote regional economic integration

14. Dlabay, Burrow and Eggland. Intro to Business 6e
Dlabay, Burrow and Eggland. Intro to Business 6e. Mason, OH: Thompson South-Western, 2006.