1. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

2. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. What We Are Striving To Accomplish 1.To understand trends in the political environment that change the shape of global competition. 2.To learn how changes in the global financial environment affect firms both internationally and domestically. 3.To appreciate how the ever-accelerating pace of technology drives change. 4.To learn how governments can trigger changes that affect trade relations. 5.To consider how firms must prepare to shift their products, pricing, distribution, and communications strategies to keep pace with global change. 6.To learn about different career opportunities in global business.

3. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. The Global Business Environment Anticipated changes that will affect the global business environment: Centrally planned economies will try to undergo a transformation into market-oriented economies Many business activities will be subject to regional economic and political instability A disparity is likely to remain between developed and less-developed countries (LDCs) Africa will continue to be a difficult area for business to be successful due to its political instability and inconsistency as trading partners Environmental protection will continue to shape the relationship between developed countries and LDCs

4. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. The Global Business Environment Emerging markets: Latin America and Asia-Pacific regions Korea India International relations, domestic policies, social and political dimensions, and infrastructural inadequacies could hamper the growth potential of these emerging markets. A major challenge will continue be the governmental policy of population stabilization between industrialized and less-developed countries.

5. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Financial Environment Developed nations will continue to help the debtor nations to increase market opportunities. The international value of currencies will be greatly impacted by market forces (investor trust, economic conditions, earnings perceptions, and political stability). The international debt load of the United States will continue to be of major concern and may require new dimensions be pursued in international business. Distinguishing between foreign and domestic products may not be necessary in the future. Lending institutions may become more conservative.

6. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Technological Environment The Internet is democratizing global business - new global retail brands and specialist companies are able to reach customers worldwide with minimal investment. Firms will be subject to much more scrutiny and customer response on a global scale. High technology advances and the costs associated with leading edge technology will greatly impact global competition.

7. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Government Policy and Trade Relations Ongoing major imbalances in trade flows will tempt nations to apply their own trade remedies. Industries are likely to ask their governments to help in their restructuring efforts. Governments may intervene in the international business environment when certain international indexes or trigger mechanisms are met. Events of September 11, 2001 will continue to impact international alliances.

8. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Crisis and Change Events of September 11, 2001 caused trading partners to realize the effects that crisis can have and the shifts in key areas of business practices that result. Customer Management: Higher degree of risk exposure analysis, development of trade portfolios, export strategies and controls Product Management: Less dependence on international inputs, “made-in” has additional positive or negative impact on products Logistics Management: Security measures greatly impact international shipments, exploration of new shipping partners People Management: Higher scrutiny in hiring practices for domestic and international employment, appreciation for culture and diversity among employees

9. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Global Strategy Considerations Reputation Management: Mass Customization Global Pricing Distribution Communications

10. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Global Product Policy Environmental concerns Global product cycle Mass customization Develop consistent comparative advantage

11. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Global Pricing Commodity characteristics will be common in products. Exchange rate movements will impact competitiveness. Governments will be asked to level the international playing field.

12. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Distribution & Communications Just-In-Time Service Internet sales Direct order entry systems Global Distribution

13. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Global Business Careers Overseasjob.com Preparing for a global business career: Secondary education in global business, study abroad, or gain foreign work experience. Work for a multinational firm - usually starting at ground floor. Gain employment with a trading or export management company. Become a self-employed consultant or trading firm.