Chapter 3 - Doing business in global markets. The purpose of this chapter is: Discuss the importance of the global market and the roles of comparative advantage and absolute advantage in global trade, explain the importance of importing and exporting, and understand key terms used in global business, illustrate the strategies used in reaching global markets and explain the role of multinational corporations, | Doing Business in Global Markets Chapter 03 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Discuss the importance of the global market and the roles of comparative advantage and absolute advantage in global trade. Explain the importance of importing and exporting, and understand key terms used in global business. Illustrate the strategies used in reaching global markets and explain the role of multinational corporations. Evaluate the forces that affect trading in global markets. Debate the advantages and disadvantages of trade protectionism. Discuss the changing landscape of the global market and the issue of offshore outsourcing. LEARNING GOALS Chapter Three 3- The Dynamic Global Market Over 90% of companies doing business globally believe it is important for employees to have international experience. . organizations (like UPS, MLB, the NFL and the NBA) are also expanding abroad. BUSINESS in the GLOBAL MARKET LG1 3- The | Doing Business in Global Markets Chapter 03 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Discuss the importance of the global market and the roles of comparative advantage and absolute advantage in global trade. Explain the importance of importing and exporting, and understand key terms used in global business. Illustrate the strategies used in reaching global markets and explain the role of multinational corporations. Evaluate the forces that affect trading in global markets. Debate the advantages and disadvantages of trade protectionism. Discuss the changing landscape of the global market and the issue of offshore outsourcing. LEARNING GOALS Chapter Three 3- The Dynamic Global Market Over 90% of companies doing business globally believe it is important for employees to have international experience. . organizations (like UPS, MLB, the NFL and the NBA) are also expanding abroad. BUSINESS in the GLOBAL MARKET LG1 3- The Dynamic Global Market Importing -- Buying products from another country. Exporting -- Selling products to another country. The . is the largest importing and the third largest exporting nation in the world. IMPORTING and EXPORTING LG1 3- Why Trade With Other Nations? Countries with abundant natural resources (like Venezuela or Russia) need technological resources from other countries (like Japan). Global trade allows countries to produce what they make best and buy what they need from others. Free Trade -- The movement of goods and services among nations without political or economic barriers. TRADING with OTHER NATIONS LG1 3- Source: The World Bank, June 2011. Global trade has led the world in a new direction: Literacy rates worldwide have increased from 56% in 1950 to 89% in 2011. Life expectancy in less developed areas rose from years in 1950 to 69 years in 2011. HOW FREE TRADE BENEFITS the WORLD Why Trade With Other Nations? LG1 3- The Theories of .
