Transcript Global Opportunities

Global
Opportunities
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Global Opportunities
Chapter 4
Global Opportunities
4.1
Global Entrepreneurship
4.2
Ways to Enter the Global Market
2
Global Opportunities
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
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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
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Global Opportunities
4.1
global economy
exporting
importing
Section 4.1 Global Entrepreneurship
trade barrier
tariff
gross domestic product (GDP)
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Budgeting Goals
Set goals, make them specific, and prioritize
them.
Estimate your income to the best of your ability.
Budget for unexpected events
Budget for fixed expenses, and list them.
Budget for variable expenses, and list them.
Record what you spend.
Review your spending patterns.
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The Global Economy
Entrepreneurship plays an
important role in today’s
multicultural global society.
global economy the
interconnected
economies of the nations
of the world
Technological advances
and changes in trade
barriers have created a
global economy.
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The Global Economy
International markets
provide opportunities for
entrepreneurs to engage in
importing and exporting
goods and services.
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exporting the selling
and shipping of goods to
other countries
importing the buying or
bringing in goods from
other countries to sell
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Trade Barriers Have Fallen
The World Trade Organization is a global coalition
of governments that makes the rules that govern
international trade.
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Trade Barriers Have Fallen
The World Trade
Organization works to
eliminate or lessen trade
barriers and tariffs.
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trade barriers a
restriction on goods
entering or leaving a
country
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Trade Barriers
When trade barriers are lowered, countries
benefit from less taxes , more trade, and more
employment of its workforce.
Tariff- a type of trade barrier imposed by a
government as a tax on imported or exported
goods.
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NAFTA
NAFTA stands for the North American Free trade
Agreement.
The United States, Canada, and Mexico are the
members of this trade agreement.
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Global Opportunities
A nation’s economy is
measured by its gross
domestic product (GDP).
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gross domestic product
(GDP) the total value of
all goods produced in a
country during the year
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Top Importers of U.S.
Goods
South America-$28,899M
Mexico-$97,531M
European Union-$143,748M
Canada-$160,830M
Asia- $193,495M
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Global Opportunities
4.1
1. Describe the role of small business and
entrepreneurship in today’s multicultural,
global economy.
Small businesses and entrepreneurs are going
global to take advantage of the opportunities to
do business with other countries.
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Global Opportunities
4.1
2. Explain why the global market is important.
The global market holds many opportunities for
growing businesses because it is many times the
size of the U.S. market.
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4.1
3. Discuss how the global market provides
domestic and global opportunities for
entrepreneurs.
Opportunities lie in every part of the world where
customers need and/or want products made in the United
States and where products not found in the United States
can be imported. Huge opportunities are available in Asia,
Latin America, and Europe and in developing nations.
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4.2
Describe the benefits and risks of international
trade.
Explain how to find the best international
markets.
Compare and contrast importing and exporting.
Section 4.2 Ways to Enter the Global Market
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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.
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Global Opportunities
4.2
interpreter
Standard Industrial Trade
Classification (SITC) codes
International Business
Exchange (IBEX)
trade missions
“best prospect” list
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disposable income
trade intermediary
foreign joint venture
export management company
freight forwarder
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Understanding
International Business
Understanding how other countries conduct
business is important to your success as an
entrepreneur.
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Proper Business Etiquette
Understand the culture in the country you travel
to.
Know how to be respectful, when you travel.
Speak in terms of the foreign currency, not U.S.
dollars.
Know how to greet someone properly.
Be punctual for a meeting. Time is important in
other countries also.
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Tips for Showing Respect
Dress conservatively and in dark colors.
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.
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Tips for Showing Respect
It is important to show
respect and understanding
for the cultures of the
people with whom you do
business.
interpreter a person
who translates one
language into or from
another
An interpreter will help
ensure that your
communications to others
are accurate.
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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.
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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
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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).
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International Business
Exchange (IBEX) the
electronic commerce
system that allows
businesses to find trading
partners and sell products
and services anywhere in
the world
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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.
Section 4.2 Ways to Enter the Global Market
“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
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Other Sources of Help
U.S Census Bureau’s- Guide to Foreign Trade
Statistics.
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Questions to be answered
when Trading with countries.
How do you decide on what product to trade?
What are things you should consider before
trading? (Cost, demand, quality, quantity, etc.)
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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.
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disposable income
money people have to
spend after paying for
necessary expenses
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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
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Where to Find Import Opportunities
Attend trade shows.
Read trade publications and catalogs.
Research the market.
Talk to potential customers.
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Deciding on a Product
to Export
An entrepreneur can
expand a business into a
foreign market by using a
trade intermediary.
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trade intermediary an
agency that serves as a
distributor in a foreign
country
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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.
Section 4.2 Ways to Enter the Global Market
foreign joint venture
an alliance between an
American small business
and a company in another
nation
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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.
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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
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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
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Global Opportunities
4.2
1. Describe the benefits and risks of
international trade.
The benefits of international trade include being able to
purchase goods or services from and sell them to other
countries and to manufacture in other countries. Countries
with unstable governments provide a riskier due to form of
opportunity; there are many barriers and little government
support for business owners.
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Global Opportunities
4.2
2. Explain how to find the best international
markets.
The U.S. Census Bureau’s Guide to Foreign Trade
Statistics helps in locating sources for various trade
statistics. Standard Industrial Trade Classification
(SITC) codes tell what kinds of products are traded in
specific countries.
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4.2
3. Compare and contrast importing and
exporting.
Importing is buying products from other
countries to resell in your own country.
Exporting is selling and shipping goods to
other countries.
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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.
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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 taxation
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Tech Terms
real time
the actual time that something takes place
translation
the process of changing one written communication into a second
language with the same meaning
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End of
Global
Opportunities
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