1. Student Target: be able to define multinational corporations and identify their products as imports or exports.

2. BMW Munich, Germany

3. Toyota Toyota City, Japan

4. Coca-Cola Atlanta, GA; USA

5. Adidas Herzogenaurach, Germany

6. Puma Herzogenaurach, Germany

7. McDonalds Oak Brook, IL; USA

8. Nike Beaverton, OR; USA

9. Hyundai Seoul, South Korea

10. Giorgio Armani Milan, Italy

11. Red Bull Salzberg, Austria

12. Sony Tokyo, Japan

13. Siemens Munich, Germany

14. Isuzu Tokyo, Japan

15. Shell (Royal Dutch Shell) The Hague, The Netherlands

16. British Petroleum London, England

17. DeBeers Southdale, South Africa

18. Cadbury Schweppes London, England

19. Louis Vuitton Paris France

20. Qantas Airlines: Sydney, Australia

21. WAL-MART Bentonville, Arkansas; USA

22. Volkswagen Wolfsburg, Germany

23. Accenture Largest consulting business in the world Hamilton, Bermuda

24. Juan Valdez Cafes Bogota, Colombia

25. Bayer Barmen, Germany

26. PEPSI New York City, NY; USA

28. Why Global? 1. Profit!! 2. Changes in the domestic market 3. New or larger markets in other countries 4. Lower production costs abroad 5. Treaties or trading blocs

29. Imports & Exports Selling products or services to buyers in another country is known as: _____________ ____________ refers to buying goods and services made in a foreign country. How is a product deemed an import or export if parts are made in several different countries? If _____% of the product is made in the U.S. it can be labeled “Made in the U.S.A.” IMPORT EXPORT 51

30. Import or Export? 1. Boeing (U.S.) makes and sells planes to Qantas (Australia) Airlines Import for Qantas/Australia; Export for Boeing/U.S. 2. CDW (U.S.) purchases Acer (Taiwan) laptops. Import for CDW/U.S.; Export for Acer/Taiwan 3. Mitsubishi Endeavors sold to car dealerships in Tokyo. Import for Car Dealerships/Japan; Export for Mitsubishi/U.S.

31. Governmental Policies on Int’l Business 1. Tariffs: taxes placed on foreign goods Ex: U.S. places a 10% tariff on foreign jeans. $30 jeans now cost: $33 2. Dumping: selling goods in a foreign market below cost or below the cost in their home country to drive out competitors (like a retail store using a loss leader). 3. Quota: places limits on the number of products that can enter 4.Embargo: no products allowed/accepted Example?

32. Foreign Currencies Exchange rate: value of one country’s currency expressed in the currency of another country. $1US = ¥125 (Jap.Yen). A 12,500 ¥ camera in the U.S. would cost: If exchange rate changes to ¥ 100 camera in U.S. now costs: $100 $125

33. World Currencies Yen ¥ Japan Dollar U.S. Dollar, Canadian Dollar, Australian Dollar, New Zealand Dollar Real Brazil Yuan China Franc Switzerland Pound £ U.K. Rand South Africa Rupee India Peso Argentine Peso, Mexican Peso Euro € Germany, Italy, Netherlands, France, Spain

34. Treaties & Trading Blocs Treaties: WTO: enforces rules governing international trade NAFATA: free trade among U.S., Mexico and Canada U.S. signed it originally with just…. EU: 27 European countries Why? Removes traiffs, encourages trade with the free movement of people, goods and capital. Bulgaria and Romania recent additions in 2007 18 of 27 nations have adopted the Euro as their currency U.K.? Canada

35. Balance of Trade Imports vs. Exports Imports exceed Exports = Trade deficit (negative) Exports exceed Imports = Trade surplus (positive)

36. U.S. Trade deficit

37. Top 10 U.S. Trading Partners (in billions) 1. Canada: $518.10Canada 2. China: $345.45China 3. Mexico: $315.59Mexico 4. Japan: $176.30Japan 5. Germany: $129.73Germany 6. United Kingdom: $97.22United Kingdom 7. South Korea: $71.70South Korea 8. France: $62.03France 9. Saudi Arabia: $59.32Saudi Arabia 10. Brazil: $54.14Brazil