1. Chapter 4 Assessing Global Conditions

2. Learning Objectives Assessing Global Conditions Exchange RateMotives Characteristics Conducting Barriers

3. Assessing Global Conditions The Key Decisions in Running a Business

4. Assessing Global Conditions Motives for International Motives Conducting Barriers Characteristics Exchange Rate Foreign Demand Technology Resources Diversification Combination of Motives

5. Assessing Global Conditions The Chinese Context Do the Chinese companies have the motives to engage in the international business? What are the benefits of going international? Do you know any Chinese company which has its foreign subsidiary/subsidiaries ?

6. Assessing Global Conditions Importing & Exporting Motives Conducting Barriers Characteristics Exchange Rate Exporting Importing Tariff Quota Internet

7. Assessing Global Conditions http://www.harvesthanger.com/

8. Assessing Global Conditions Balance of Trade Motives Conducting Barriers Characteristics Exchange Rate

9. Assessing Global Conditions Reasons for Direct Foreign Investment Motives Conducting Barriers Characteristics Exchange Rate Transportation Barriers Technology Lower Costs

10. Assessing Global Conditions Outsourcing Motives Conducting Barriers Characteristics Exchange Rate Lower Cost Labor

11. Assessing Global Conditions Galanz outsources some of its production to 浙江永丰众利机械厂。 Dell outsources its customer service to India.

12. Assessing Global Conditions Strategic Alliances Motives Conducting Barriers Characteristics Exchange Rate Strategic Alliances Joint Venture International Licensing

13. Assessing Global Conditions Barriers to International Business Motives Conducting Barriers Characteristics Exchange Rate NAFTA GATT - WTO Latin America European Union Reduction in Barriers

14. Assessing Global Conditions Protection Remaining Barriers Motives Conducting Barriers Characteristics Exchange Rate Punishment

15. Assessing Global Conditions Disagreements Motives Conducting Barriers Characteristics Exchange Rate Environment restriction Labor Bribery Taxation

16. Assessing Global Conditions Foreign Characteristics Motives Conducting Barriers Characteristic s Exchange Rate Culture

17. Assessing Global Conditions Economic Systems Motives Conducting Barriers Characteristic s Exchange Rate Capitalism Communism Socialism

18. Assessing Global Conditions Economic Conditions Motives Conducting Barriers Characteristic s Exchange Rate Insert Exhibit 4.4 from pg 130 Economic Growth Sensitivity

19. Assessing Global Conditions Political RiskCorruption Risk & Regulation Motives Conducting Barriers Characteristic s Exchange Rate

20. Assessing Global Conditions Importance of Exchange Motives Conducting Barriers Characteristics Exchange Rate Insert Exhibit 4.6 from page 135

21. Assessing Global Conditions Value of the Dollar Motives Conducting Barriers Characteristics Exchange Rate Stronger Appreciate Weaker Depreciate

22. Assessing Global Conditions Hedging Motives Conducting Barriers Characteristics Exchange Rate Time  Spot Rate Forward Rate