Think Global act local

1
Chapter 4

• Think Global act local!

2
International Business and Newfoundlands Past

• On your paper, write a number from 1 10 after
  reading the following statement
• When you read the title, if you believe that
  the 2 concepts are one in the same, place a 1 on
  your page. If you believe that they are not
  related, then place a 10. If you believe they
  are somewhat related, pick a number from 1 10.
  Be prepared to discuss your decision.

3
International Business

• Buying, selling, and trading of goods/services
  across national boundaries
• Net new dollars for the economy

• Balance of Trade exports-imports
• USA is our PARTNER!
• What about the EU??? Asia??? South America?

4
Barriers to Trade

• Economic
• Development infrastructure capacity
• Exchange rates affordability
• Legal/Political
• Laws, tariffs, sanctions, cartels
• Social/Cultural
• Language, customs, religion
• Technological
• Level of infrastructure, current and potential

5
Trade Groupings

• World trade Organization (GATT)
• Free Trade Agreement (FTA)
• North American Free Trade Agreement (NAFTA)

• European Union (EU)
• Association of South East Asian Nations (ASEAN)

6
Ways to get involved

• Trading company
• Licensing
• Franchising
• Direct Investment

• Contract manufacturing
• Joint Ventures
• Strategic Alliances

7
Global Village

• www.lehigh.edu/village