1. Global Opportunities Back to Table of Contents

2. Global Opportunities 2 Chapter 4 Global Opportunities Global Entrepreneurship Ways to Enter the Global Market 4.1 4.2

3. Global Opportunities 3 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 4.1

4. Global Opportunities 4 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 4.1

5. Global Opportunities 5 global economy exporting importing Section 4.1 Global Entrepreneurship 4.1 trade barrier tariff gross domestic product (GDP)

6. Global Opportunities 6 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. global economy the interconnected economies of the nations of the world Section 4.1 Global Entrepreneurship

7. Global Opportunities 7 The Global Economy International markets provide opportunities for entrepreneurs to engage in importing and exporting goods and services. importing the buying or bringing in goods from other countries to sell Section 4.1 Global Entrepreneurship exporting the selling and shipping of goods to other countries

8. Global Opportunities 8 Trade Barriers Have Fallen The World Trade Organization is a global coalition of governments that makes the rules that govern international trade. Section 4.1 Global Entrepreneurship

9. Global Opportunities 9 Trade Barriers Have Fallen The World Trade Organization works to eliminate or lessen trade barriers and tariffs. trade barriers a restriction on goods entering or leaving a country Section 4.1 Global Entrepreneurship tariffs a type of trade barrier imposed by a government as a tax on imported or exported goods

10. Global Opportunities 10 Global Opportunities A nation’s economy is measured by its gross domestic product (GDP). gross domestic product (GDP) the total value of all goods produced in a country during the year Section 4.1 Global Entrepreneurship

11. Global Opportunities 11 1. Describe the role of small business and entrepreneurship in today’s multicultural, global economy. Section 4.1 Global Entrepreneurship 4.1 Small businesses and entrepreneurs are going global to take advantage of the opportunities to do business with other countries.

12. Global Opportunities 12 2. Explain why the global market is important. Section 4.1 Global Entrepreneurship 4.1 The global market holds many opportunities for growing businesses because it is many times the size of the U.S. market.

13. Global Opportunities 13 3. Discuss how the global market provides domestic and global opportunities for entrepreneurs. Section 4.1 Global Entrepreneurship 4.1 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.

14. Global Opportunities 14 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 4.2

15. Global Opportunities 15 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. Currently China has the fastest growing economy in the world while the top importer of US goods is Canada Section 4.2 Ways to Enter the Global Market 4.2

16. Global Opportunities 16 interpreter Standard Industrial Trade Classification (SITC) codes International Business Exchange (IBEX) trade missions “best prospect” list Section 4.2 Ways to Enter the Global Market 4.2 disposable income trade intermediary foreign joint venture export management company freight forwarder

17. Global Opportunities 17 Understanding International Business Understanding how other countries conduct business is important to your success as an entrepreneur. For example, in Latin America people make their buying decisions based on their family’s needs, while in Asian countries, decisions are made based on what’s best for the person’s employer. Section 4.2 Ways to Enter the Global Market

18. Tips for Showing Respect Section 4.2 Ways to Enter the Global Market 18 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.

19. Global Opportunities 19 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. interpreter a person who translates one language into or from another Section 4.2 Ways to Enter the Global Market

20. Global Opportunities 20 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. 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

21. Global Opportunities 21 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). 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

22. Global Opportunities 22 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. “best prospect” list a list compiled by the government of products that other countries want to purchase Section 4.2 Ways to Enter the Global Market 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

23. Global Opportunities 23 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. disposable income money people have to spend after paying for necessary expenses Section 4.2 Ways to Enter the Global Market

24. Research the market. Talk to potential customers. Where to Find Import Opportunities Section 4.2 Ways to Enter the Global Market 24 Attend trade shows. Read trade publications and catalogs.

25. Use a trade intermediary License foreign businesses to sell your products Where to Find Export Opportunities Section 4.2 Ways to Enter the Global Market 25 Establish an e-commerce web site Establish a foreign joint venture Hire a freight forwarder Use an export management company

26. Global Opportunities 26 Deciding on a Product to Export An entrepreneur can expand a business into a foreign market by using a trade intermediary. trade intermediary an agency that serves as a distributor in a foreign country Section 4.2 Ways to Enter the Global Market

27. Global Opportunities 27 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. 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

28. Global Opportunities 28 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. export management an organization that handles all the tasks related to exporting for a manufacturer Section 4.2 Ways to Enter the Global Market freight forwarder a company that arranges shipments and prepares necessary exporting paperwork

29. Global Opportunities 29 Things to Consider Before Going Global When entrepreneurs think about going global they should make sure they have: Section 4.2 Ways to Enter the Global Market solutions a new idea a market for the product or service the ability to handle risk and frustration good contacts in other countries

30. Global Opportunities 30 1. Describe the benefits and risks of international trade. Section 4.2 Ways to Enter the Global Market 4.2 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.

31. Global Opportunities 31 2. Explain how to find the best international markets. Section 4.2 Ways to Enter the Global Market 4.2 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.

32. Global Opportunities 32 3. Compare and contrast importing and exporting. Section 4.2 Ways to Enter the Global Market 4.2 Importing is buying products from other countries to resell in your own country. Exporting is selling and shipping goods to other countries.

33. Global Opportunities 33 Section 4.2 Ways to Enter the Global Market 33 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. International E-Commerce

34. Global Opportunities 34 Section 4.2 Ways to Enter the Global Market 34 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

35. Global Opportunities 35 Section 4.2 Ways to Enter the Global Market 35 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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