Transcript Business - Blog Unpad

Business
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Session #5
Understanding The
Global Context Of
Business
Business Introduction - Teaching Team
Business and Management Department
Faculty of Economics UNPAD
1-2
Contemporary
Global Economy
Business
• Globalization
– Import
– Export
• Trade Agreements
– General Agreement On Tariffs and
Trade
– North American Free Trade
Agreement
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Business
Cost Of Global
Communication
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European Union
Members
Business
• Proposed (1950)
– Belgium
– Germany
– France
– Italy
– Luxembourg
– Netherlands
• 1981
– Greece
• 1986
– Spain
– Portugal
• 1995
• 1973
– Denmark
– Ireland
– United Kingdom
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– Austria
– Finland
– Sweden
5-5
European Union (2004)
Business
• Entered (May 1st)
– Cyprus
– Czech Republic
– Estonia
– Hungary
– Latvia
– Lithuania
– Malta
– Poland
– Slovak Republic
– Slovenia
• Candidates For
Membership
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– Bulgaria
– Croatia
– Romania
– Turkey
5-6
Business
Evolution of the World
Trade Organization
• 1944- Establishment of:
– International Monetary Fund
– World Bank
• 1947- General Agreements on Tariffs
& Trade (GATT)
• 1994- World Trade Organization
Established
Source: “The World Trade Organization: History, Structure, and Analysis”, Alan D. Minyard,
http://www2.netdoor.com/~aminyard/
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Business
ASEAN-China
Free Trade Area
• The agreement signed at the 10th ASEAN
Summit in Vientiane, LAO PDR in November
2004, which is set to be established by 2010 for
ASEAN 6 and China, and by 2015 for the newer
ASEAN member
• Benefits to the ASEAN region (source:
Integration,ASEAN Secretariat ) :
– Enlarged Market Size and enhanced trade
– Removal of trade barriers, specialisation and
enhanced economic efficiency
– Improved invesment prospects
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Business
High Income
Marketplaces
•
•
•
•
U.S. & Canada
Europe
Australia & New Zealand
Japan, South Korea, Singapore,
Taiwan, & Hong Kong
• Kuwait, United Arab Emirates,
Israel
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Business
Middle IncomeMarketplaces• Czech Republic, Greece, &
Hungary, Poland
• Turkey
• Mexico, Argentina,
& Uruguay
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Low Income
Marketplaces
Business
• China
• India
• Somalia
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Business
Major Market Regions
• North America
– U.S.
– Mexico
– Canada
• Europe
– Western
– Eastern
• Pacific Asia- Association of Southeast
Asian Nations
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Business
U.S. Major
Trading Partners
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Advantage
AbsoluteDiamonds
Comparative
Produce Efficiently
Business
High
Grain
DVDs
Export
Low
South
Africa
Rest of
World
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US
South
Korea
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Business
National
Competitive Advantage
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Import-Export Balances
Business
• Balance Of Trade
• Trade Deficits/Surpluses
• Balance Of Payments
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Exchange Rates
Business
• Rates & Competition
• U.S. Economy &
Foreign Trade
• Dollar  U.S Exports 
• Dollar  U.S. Exports 
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International
Business Management
Business
• Going International
• Gauging Demand
• Adapting To Customer
Needs
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Business
Going International
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Business
McDonald’s
International Menu
• India- Maharaja Mac (Mutton)
• Thailand- Samurai Pork Burger With Teriyaki
Sauce
• Japan- Chicken Sandwich Flavored With Soy
Sauce & Ginger
• Holland- McKroket (Semi-Crispy Shelled Beef
Patty With Creamy Mayo-Based Sauce
• Philippines- Spaghetti & Fried Chicken
• Hawaii- Saimin (Noodle Soup)
• For More Countries Go To McDonald's Home
Page & Select A Country
Sources: E-Opinions.com, http://www.epinions.com/content_55707274884, & McDonald’s
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Levels Of
International Involvement
Business
• Exporters/Importers
• International Firms
• Multinational Firms
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International
Business Structures
High
Strategic Alliances
Branch Offices
Licensing
Arrangements
Commitment/Risk
Business
Foreign Direct
Investment
Independent Agents
Low
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Business
Barriers To
International Trade
• Social/Cultural Differences
• Economic Differences
• Legal/Political Differences
–
–
–
–
–
–
–
Embargo
Tariffs
Subsidy
Protectionism
Local Content Laws
Business Practice Laws
Cartels & Dumping
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