business management. today’s objectives describe the effect of a global marketplace on business,...
TRANSCRIPT
Today’s Objectives
Describe the effect of a global marketplace on business, including Changes in American business
operations
Basic business concerns & variables in business competition
Globalization The worldwide
movement toward economic, financial, trade, and communications integration
Implies that we are more interconnected and interdependent
What does it mean for business?
Emphasis on the transfer of capital, goods, and services across national frontiers
Here in the United States… You could purchase domestic
goods that are products made by firms in the United States.
You could purchase foreign goods that are products made by firms in other countries.
How much of what you’re wearing is really Made in America?
BINGO!
Trade AgreementsFree-trade agreements are international agreements that eliminate almost all trade restrictions and subsidies between individual countries and groups of countries.
This helps with… Importing –
buying goods or services made in a foreign country
Exporting – when a company sells its goods and services to a foreign country
Effect on American Businesses More e-
commerce doing business
online
Decrease of production jobs
Rapid growth of service jobs
Businesses are concerned with… Production
costs
Product quality
Service quality
Sales volume
Profit margins