Transcript Growing the Firm

Introduction to International
Business
David J. Boggs, Ph.D.
Economic Environment
Some Acronyms
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EU European Union
FDI foreign direct investment
GDP gross domestic product
GNP gross national product
IMF International Monetary Fund
MENA Middle East and North Africa
MDF Mediterranean Development Forum
NGOs non-governmental organization
NICs newly industrialized countries
OECD Organization for Economic Cooperation and Development
PPP purchasing power parity
VAT value-added tax
WTO World Trade Organization
http://www.worldbank.org/wbi/mdf/mdf1/terms.htm
Economic Systems
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Capitalism
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Mixed Economy (Socialism)
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laissez-faire, private, free-market economy
basic means of production, distribution and
exchange controlled
transportation, banking, goods and services,
natural resources, communications, postal
Communism
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theoretically classless society, government
ownership, centralized planning
Factors that Measure Economic
Freedom (Heritage Foundation)
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Trade policy
Taxation
Government intervention in the economy
Monetary policy
Capital flows and investment
Banking
Wage and price controls
Property rights
Black market activity
Country Economic Categories
(World Bank Categories)
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High-income
Middle-income
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upper-middle
lower-middle
Low-income
Developing
Geographic, Oil, non-market, and
transition economies
Economic Transitions
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Rates of growth vary substantially
around the world
Many formerly communist countries are
now mixed or market economies
Rates of liberalization and privatization
vary around the world
Economic Factors that Affect
International Business
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GNI, GNP and GDP (gross and per
capita)
Private and public consumption and
investment
Discretionary income
Income distribution
Unit labor costs
National economic and indicative plans
Other Important Economic
Factors
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Public deficit and debt
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Domestic or external
Percent of GDP or exports
Interest rates and inflation
Balance of Payments
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Goods, services, income, dividends, payments,
and unilateral transfers (aid, gifts, etc.)
Effect on currency values and trade policy
Economic Indicators
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Telephones
Computers
Passenger cars
Trucks and buses
Steel consumed
Electricity consumed
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TVs
VCRs
Miles of paved roads
Private consumption
expenditures
Airports
Socioeconomic Factors
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Population
Population density and distribution
Rural versus urban population
Age distribution
Family structures and divorce
Working women
Rates of change for all of the above
Quality of Life
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Human happiness
Life expectancy
Educational
standards
Individual
purchasing power
Health
Sanitation
Treatment of
Women
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Canada
United States
Japan
Netherlands
Norway
Other Issues
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What is the appropriate balance
between income equality and economic
growth?
The Exam Map
To get a C or better on the
exam, you should
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Attend classes regularly
Take good notes
Understand and give examples of all concepts
Read all chapters before class
Study for several days rather than cram
Memorize geography
Prepare/plan responses to essay questions
Study practice questions