1. Chapter 3: Business in the Global Economy

2. Target Identify why countries trade and are afraid of trade.
Explore how countries interact with one another and the international environment.
Classify multinational corporations.

3. International Business 101
Imports
Items brought in from another nation
Exports
Items sent from your nation
Absolute Advantage
A country can produce item at lower cost better then other nations
Comparative Advantage
A country has more then one absolute advantage, but may only produce one and import the other

4. Balance of Trade Difference between imports and exports
Surplus = exports more then imports
Deficit= imports more then the export
2012 : U.S. trade in goods with World, Seasonally Adjusted
Month
Exports
Imports
Balance
January
126,527.4
192,480.3
-65,952.9
February
126,880.6
186,360.9
-59,480.3
March
130,788.6
197,453.0
-66,664.4
April
129,010.8
193,813.8
-64,803.0
May
129,412.9
192,285.7
-62,872.8
Total
642,620.3
962,393.7
-319,773.4

5. International Currency
Exchange Rate
Value of one currency compared to another
Affected by
Balance of payments
Amount of money that comes into a country and goes out of it
Economic Conditions
Political Stability

6. Globalization Become or make something international 3 Areas
Cultural
Economic
Political and Legal
4th more minor = Geography

7. Trade Barriers or Not
Quota
Tariff
Embargo
Free Trade Agreements