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Factors and Regulations for the Global Economy

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Factors and Regulations for the Global Economy
BF10 - Principals of Business and Finance

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Factors and Regulations for the Global Economy

  1. 1. UNDERSTANDING BusinessIn a Global Economy https://flic.kr/p/cL1DWL
  2. 2. Part3: Factors&Regulations Forbusinessintheglobal marketplace https://flic.kr/p/7179o
  3. 3. DomesticBusinessThe making, buying, and selling of goods and service within a country. https://flic.kr/p/jkrkAG
  4. 4. InternationalBusinessBusiness activities needed for creating, shipping, and selling goods and services across national borders. https://flic.kr/p/r3gPWa
  5. 5. AbsoluteAdvantageA country can produce a good or service at a lower cost than other countries. https://flic.kr/p/5NFhTB
  6. 6. ComparativeAdvantageA situation in which a country specializes in the production of a good or service at which it is relatively more efficient. https://flic.kr/p/bscqLn
  7. 7. https://flic.kr/p/gibiAV Exports-ImportsGoods and services sold between countries.
  8. 8. https://flic.kr/p/9XVA8 ForeignDebtThe amount of money a country owes to other countries.
  9. 9. https://flic.kr/p/5tWKPt BalanceofTradeThe difference between a country’s total exports and total imports.
  10. 10. https://flic.kr/p/qcppmH ForeignExchangeMarketWhere banks buy and sell different currencies.
  11. 11. https://flic.kr/p/MKKkK ExchangeRateThe value of a currency in one country when compared with the value in another.
  12. 12. https://flic.kr/p/oHokT4 International Business Environment Factors
  13. 13. https://flic.kr/p/gfJWZC Geography Includes a country’s location, climate, terrain, seaports, natural resources
  14. 14. https://flic.kr/p/2hGera CulturalInfluence Includes language, religion, family, food, values, customs, social relationships
  15. 15. https://flic.kr/p/6n7uFT EconomicDevelopment Includes education and literacy level, inflation, technology, exchange rate, agricultural, dependency, infrastructure, transportation
  16. 16. https://flic.kr/p/5D4K8a Political&LegalConcerns Includes type of government, stability of government, government policies for businesses relevant to trade barriers
  17. 17. https://flic.kr/p/499hCv Trade Barrier Factors
  18. 18. https://flic.kr/p/9Cv8Xi Embargo when a government bans the import or export of specified goods.
  19. 19. https://flic.kr/p/kmF46n Quota A limit on the quantity of good that may be imported or exported within a given period to regulate international trade.
  20. 20. https://flic.kr/p/9nMLWp Tariffs Taxes on certain imported products which increases prices.
  21. 21. https://flic.kr/p/499hCv Encouragementof International Trade
  22. 22. https://flic.kr/p/4uiE8q Common Market When countries that are members freely invest in one another. Such as: European Union (EU) or Latin American Integration Association (LAIA)
  23. 23. https://flic.kr/p/6wv9S3 FreeTradeAgreementWhen countries that are members remove duties and trade barriers on products traded among them to increase trade between members. Such as: NAFTA (North American Free Trade Agreement)
  24. 24. https://flic.kr/p/ob2FtQ FreeTradeZonesInclude selected areas that allow duty-free products to be imported, and then stored, assembled, and/or used in manufacturing. The activities usually occur around a seaport or airport.
  25. 25. https://flic.kr/p/nfYE5r EntryModetothe GlobalMarketplace
  26. 26. https://flic.kr/p/91JBdY FranchisingAllowing a business the rights to use another company’s name or process in a specific way.
  27. 27. https://flic.kr/p/9VzTJL LicensingSelling the right to a company to use some intangible property (production process, trademark, or brand name) for a fee or royalty.
  28. 28. https://flic.kr/p/9aizEX JointVentureWhen two or more companies agree to share a business project.
  29. 29. https://flic.kr/p/azQx1v Maininternational tradeorganizations
  30. 30. https://flic.kr/p/82xTtv InternationalMonetaryFundHelps promote economic cooperation and maintain an orderly system of world trade and exchange rates.
  31. 31. https://flic.kr/p/8d3nKB World BankProvides economic aid to developing countries to fund building communications systems, transportation networks, and energy plans.
  32. 32. https://flic.kr/p/gPncKH World TradeOrganizationSettles trade disputes and enforces free-trade agreements among its members.

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