Transcript Ways to Enter the Global Market

4
Global
Opportunities
Section
4.1
Global Entrepreneurship
Section
4.2
Ways to Enter the Global Market
Glencoe Entrepreneurship: Building a Business
SECTION
4.1
Global
Entrepreneurship
Section Objectives
•
•
•
Describe the role of entrepreneurship in today’s multicultural, global
economy.
Explain why the global market is important.
List current trends that provide both domestic and global
opportunities for entrepreneurs.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
SECTION
4.1
Global
Entrepreneurship
The Main Idea
The countries of the world are linked in a global economy made possible
by free trade agreements and advances in communication technology.
International markets present opportunities in all regions of the world.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
SECTION
4.1
Global
Entrepreneurship
Content Vocabulary
global economy
exporting
importing
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
trade barrier
tariff
gross domestic product (GDP)
SECTION
4.1
Global
Entrepreneurship
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.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
global economy
the interconnected economies of
the nations of the world
SECTION
4.1
Global
Entrepreneurship
The Global Economy
International markets
provide opportunities for
entrepreneurs to engage in
importing and exporting
goods and services.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
exporting
importing
the selling
shipping
goods
buying and
or bringing
in of
goods
to
other
countries
from
other
countries to sell
SECTION
4.1
Global
Entrepreneurship
Trade Barriers Have Fallen
The World Trade Organization is a global coalition of governments that
makes the rules that govern international trade.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
SECTION
4.1
Global
Entrepreneurship
Trade Barriers Have Fallen
The World Trade
Organization works to
eliminate or lessen trade
barriers and tariffs.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
tariffs
trade barriers
a
type of trade
barrierentering
imposedorby
restrictions
on goods
a
government
as a tax on
leaving
a country
imported or exported goods
SECTION
4.1
Global
Entrepreneurship
Global Opportunities
A nation’s economy is
measured by its gross
domestic product (GDP).
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
Gross domestic product (GDP)
the total value of all goods
produced in a country during the
year
SECTION
4.1
Global
Entrepreneurship
After You Read
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.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
SECTION
4.1
Global
Entrepreneurship
After You Read
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.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
SECTION
4.1
Global
Entrepreneurship
After You Read
3.
Discuss how the global market provides domestic and global
opportunities for entrepreneurs.
Opportunities lie in every part of the world where customers need or
want products made in the United States and from which products
not found in the United States can be imported. Huge opportunities
are available in Asia, Latin America, and Europe and in developing
nations.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
SECTION
4.2
Ways to Enter the
Global Market
Section Objectives
•
•
•
Identify the benefits and risks of international trade.
Explain how to find the best international markets.
Compare and contrast importing and exporting.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
SECTION
4.2
Ways to Enter the
Global Market
The Main Idea
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.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
SECTION
4.2
Ways to Enter the
Global Market
Content Vocabulary
interpreter
Standard Industrial Trade
Classification (SITC) codes
International Business
Exchange (IBEX)
trade missions
“best prospect” list
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
disposable income
trade intermediary
foreign joint venture
export management company
freight forwarder
SECTION
4.2
Ways to Enter the
Global Market
Understanding International Business
Understanding how other countries conduct business is important to
your success as an entrepreneur.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
Tips for Showing Respect
Dress conservatively.
Do not correct other people’s language.
Be prepared to remove your shoes in some situations.
Respect different tastes in food.
Do your homework before the first meeting.
Build a relationship before you do business.
If necessary, bring an interpreter.
17
SECTION
4.2
Ways to Enter the
Global Market
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.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
interpreter
a person who translates one
language into or from another
SECTION
4.2
Ways to Enter the
Global Market
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.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
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
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).
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
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
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.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
“best mission
trade
prospect” list
a list
compiled by
the government
an
opportunity
offered
by the U.S.
of products that
government
andother
private
countries
agencies
want
to
small
to purchase
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
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.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
disposable income
money people have to spend after
paying for necessary expenses
Where to Find Import Opportunities
Attend trade shows.
Read trade publications and catalogs.
Research the market.
Talk to potential customers.
23
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.
24
SECTION
4.2
Ways to Enter the
Global Market
Deciding on a Product to Export
An entrepreneur can
expand a business into a
foreign market by using a
trade intermediary.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
trade intermediary
an agency that serves as a
distributor in a foreign country
SECTION
4.2
Ways to Enter the
Global Market
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.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
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
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.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
freight
forwarder
export management
a
that arranges
ancompany
organization
that handles all of
shipments
and prepares
the tasks related
to exporting for a
necessary
exporting paperwork
manufacturer
SECTION
4.2
Ways to Enter the
Global Market
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
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
SECTION
4.2
Ways to Enter the
Global Market
After You Read
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 form of opportunity; there are many
barriers and little government support for business owners.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
SECTION
4.2
Ways to Enter the
Global Market
After You Read
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.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
SECTION
4.2
Ways to Enter the
Global Market
After You Read
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.
Chapter 4 Global Opportunities
Glencoe Entrepreneurship: Building a Business
4
Global
Opportunities
End of
Chapter 4
Section
4.1
Global
Global Entrepreneurship
Opportunities
Section
4.2
Ways to Enter the Global Market
Glencoe Entrepreneurship: Building a Business