1. Explain why the global market is important.
4.1
Describe the role of small business and entrepreneurship in today’s multicultural, global 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.
Section 4.1 Global Entrepreneurship

2. 4.1
The countries of the world are linked in a global economy made possible by free trade agreements and advances in communications technology.
International markets present opportunities in all regions of the world.
Section 4.1 Global Entrepreneurship

3. 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
Section 4.1 Global Entrepreneurship

4. 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
Section 4.1 Global Entrepreneurship

5. Trade Barriers Have Fallen
The World Trade Organization works to eliminate or lessen
trade barriers and tariffs.
trade barriers a restriction 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
The World Trade Organization is a global coalition of governments that makes the rules that govern international trade.
Section 4.1 Global Entrepreneurship

6. 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
Section 4.1 Global Entrepreneurship

7. 4.2
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.
Section 4.2 Ways to Enter the Global Market

8. 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
Section 4.2 Ways to Enter the Global Market

9. Tips for Showing Respect
Understanding how other countries conduct business is important to your success as an entrepreneur.
Do not correct other people’s language.
Be prepared to remove your shoes in some situations.
Do not comment negatively on food.
Do your homework before a meeting.
Build a relationship before you do business.
Bring your own interpreter.
Dress conservatively and in dark colors.
Section 4.2 Ways to Enter the Global Market 9

10. 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
Section 4.2 Ways to Enter the Global Market

11. 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
Section 4.2 Ways to Enter the Global Market

12. 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
Section 4.2 Ways to Enter the Global Market

13. 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
Section 4.2 Ways to Enter the Global Market

14. Where to Find Import Opportunities
Attend trade shows.
Read trade publications and catalogs.
Research the market.
Talk to potential customers.
Section 4.2 Ways to Enter the Global Market 14

15. Where to Find Export Opportunities
Establish an e-commerce web site
Establish a foreign joint venture
Use an export management company
Hire a freight forwarder
License foreign businesses to sell your products
Use a trade intermediary
Section 4.2 Ways to Enter the Global Market 15

16. 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
Section 4.2 Ways to Enter the Global Market

17. 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
Section 4.2 Ways to Enter the Global Market

18. 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 the tasks related to exporting for a manufacturer
freight forwarder a company that arranges shipments and prepares necessary exporting paperwork
Section 4.2 Ways to Enter the Global Market

19. Things to Consider Before Going Global
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
Section 4.2 Ways to Enter the Global Market

20. International E-Commerce
Overseas markets represent an enormous economic opportunity for e-commerce enterprises, but doing business in another country can be complex.
Entrepreneurs must be concerned with language, currency, culture, and country regulations.
Section 4.2 Ways to Enter the Global Market 20

21. Tech Terms exchange rate
the rate at which one currency is converted into another
graphic user interface
the design, content, and navigation of a Web site
import regulations
the rules that govern the types and amounts of products that can be sold, packing that can be used, and taxationreal time
the actual time that something takes place
translation
the process of changing one written communication into a second language with the same meaning
Section 4.2 Ways to Enter the Global Market 21