Learning Objectives and Class Prep - Global Business
Introduction
Business has become increasingly global in multiple respects: competition and sourcing just to name two key areas. Many well-known American multi-national firms now earn more than half their revenues outside the United States and due to tax issues also keep substantial profits offshore. In this session, we will explore global markets with an emphasis on entry strategies.
Learning Objectives
Upon completing the learning activities associated with this lesson, class participants should be able to:
- Explain why nations and companies participate in international trade.
- Describe the concepts of absolute and comparative advantage.
- Explain how trade between nations is measured.
- Define importing and exporting.
- Explain how companies enter the international market through licensing agreements or franchises.
- Describe how companies reduce costs through contract manufacturing and outsourcing.
- Explain the purpose of international strategic alliances and joint ventures.
- Understand how U.S. companies expand their businesses through foreign direct investments and international subsidiaries.
- Appreciate how cultural, economic, legal, and political differences between countries create challenges to successful business dealings.
- Describe the ways in which governments and international bodies promote and regulate global trade.
Preparation for Class
To complete this lesson, you will need to do the following activities:
- Review the Learning Objectives
- Read Chapter 5 from the Press Books site.
Watch the Lecture Video for Chapter 5 Links to an external site.