1. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-1 Competing in Global Markets

2. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-2 International Trade ●Trade “wars” ●Trade treaties –NAFTA –CAFTA –EU ●Businesses will work around government actions –e.g. Ford van imports –Countertrade  IBM example

3. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-3 Reducing Barriers to International Trade ●Organizations Promoting International Trade –World Bank  For infrastructure support –International Monetary Fund  For debt and financial aid

4. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-4 Going Global ●Contractual Agreements –Franchising. –Foreign Licensing. –Subcontracting. ●International Direct Investment –Acquisitions –Joint Ventures

5. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-5 Developing a Strategy for International Business ●Global Business Strategies Offering a standardized, worldwide product and selling it in essentially the same manner throughout a firm’s domestic and foreign markets. ●Multidomestic Business Strategy Developing and marketing products to serve different needs and tastes of separate national markets.

6. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-6 The Legal Framework of Business ●Antitrust – monopolies are illegal – no price discrimination – no collusion ●Regulation – FTC – Federal Trade Commission – FCC – Federal Communications Commission – FDA – Food and Drug Administration –SEC – Securities and Exchange Commission

7. Copyright © 2005 by South-Western, a division of Thomson Learning, Inc. All rights reserved. 1-7 Business Law ●Liability ●Intellectual Property protection – patent – copyright – trademark – trade secret