3: Business in a Global Environment
- Page ID
- 3957
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- 3.1: The Globalization of Business
- This page provides learning objectives on international trade, covering reasons for engagement, absolute and comparative advantage, and trade measurement. It highlights globalization's role in business and the necessity of understanding global commerce for career success, given the diverse products and cultures individuals will encounter.
- 3.2: Opportunities in International Business
- This page outlines methods for companies to enter international markets, such as importing and exporting goods, licensing intellectual property, contract manufacturing, and outsourcing labor. It highlights the advantages of these strategies for cost reduction and the formation of international alliances and joint ventures, while also addressing the ongoing debate regarding multinational corporations.
- 3.3: The Global Business Environment
- This page highlights the significance of recognizing cultural, economic, legal, and political differences in international business. It discusses challenges like language barriers and varying business practices, pointing out the importance of understanding high-context versus low-context cultures. Examples of translation pitfalls and cultural misunderstandings are provided.
- 3.4: Trade Controls
- This page discusses how governments and international organizations regulate global trade using protectionist measures such as tariffs, quotas, and subsidies to protect domestic industries. While these methods aim to support local producers and maintain competitive pricing, critics highlight their potential to create unfair advantages and distort global markets.
- 3.5: Reducing International Trade Barriers
- This page discusses initiatives to lower trade barriers and enhance free trade, highlighting key organizations like GATT (1947) and WTO (1995). GATT regulates tariffs and trade disputes, while WTO, with almost 150 members, oversees global trade but struggles with enforcement. The page notes that trade disputes, such as the U.S. steel tariff ruling, can result in counter-tariffs, illustrating the challenges faced in maintaining trade compliance and cooperation.
- 3.6: Preparing for a Career in International Business
- This page outlines essential steps for preparing for a career in international business, including majoring in international business and mastering core areas like finance and marketing. It emphasizes the importance of understanding international politics, economics, and culture through liberal arts, as well as developing foreign-language skills. Participation in study-abroad programs and cultural interactions are encouraged.
- 3.7: Cases and Problems
- This page emphasizes the significance of currency exchange rates in personal and business contexts, encouraging students to explore study-abroad programs for global career readiness. It addresses ethical issues in international trade, particularly dumping and subsidies, while examining China's economic impact on U.S. enterprises.