GLOBALIZATION

Business Management

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!

Why do we seem to have more foreign goods from some countries over others?

Think About It

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

Does the United States typically IMPORT or EXPORT more goods?

Think About It

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

Do Work…