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The Global Marketplace
The Global Marketplace
Freshman Seminar - Introduction to Business
Mr. HaysNovember 26, 2007
Freshman Seminar - Introduction to Business
Mr. HaysNovember 26, 2007
The Global EconomyThe Global Economy
• What is it?– The interconnected economies of the
nations of the world– Fueled by international trade
• What is international trade?– The exchange of goods and services
between nations
• What is it?– The interconnected economies of the
nations of the world– Fueled by international trade
• What is international trade?– The exchange of goods and services
between nations
Multinational CorporationsMultinational Corporations
• Definition– A company that does business in many
countries– Has facilities and offices around the world
– Researching the web:• Find the four largest multinational corporations in 2000
• Definition– A company that does business in many
countries– Has facilities and offices around the world
– Researching the web:• Find the four largest multinational corporations in 2000
QuickTime™ and aTIFF (Uncompressed) decompressor
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International TradeInternational Trade
• Has several meanings– Research the web and find at least three
business definitions for trade
• The activity of buying and selling goods and services in a domestic or international market
• Why have international trade?– Allows countries to meet their individual
wants and needs
• Has several meanings– Research the web and find at least three
business definitions for trade
• The activity of buying and selling goods and services in a domestic or international market
• Why have international trade?– Allows countries to meet their individual
wants and needs
Types of TradeTypes of Trade
• Domestic Trade:– The production, purchase, and sale of of goods and
services within a country– 2001 - US Domestic Trade = $3.2 Trillion
• Wal-Mart - $202 billion• Home Depot - $53.5 billion• Kroger - $50 billion• Target - $39.2 billion• Sears - $37.3 billion
• World Trade:– Exchange of goods and services across international
boundaries– 2001 - US International Trade = $434.3 billion
• Domestic Trade:– The production, purchase, and sale of of goods and
services within a country– 2001 - US Domestic Trade = $3.2 Trillion
• Wal-Mart - $202 billion• Home Depot - $53.5 billion• Kroger - $50 billion• Target - $39.2 billion• Sears - $37.3 billion
• World Trade:– Exchange of goods and services across international
boundaries– 2001 - US International Trade = $434.3 billion
QuickTime™ and aTIFF (Uncompressed) decompressor
are needed to see this picture.
Imports and ExportsImports and Exports
• What are Imports?– Goods or services that one country buys
from another country
• What are Exports?– Goods or services that one country sells to
another country
• Web Research: Find the number one U.S. import and export
• What are Imports?– Goods or services that one country buys
from another country
• What are Exports?– Goods or services that one country sells to
another country
• Web Research: Find the number one U.S. import and export
QuickTime™ and aTIFF (Uncompressed) decompressor
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Balance of TradeBalance of Trade
• What is a trade balance?– The difference in value between a
country’s imports and exports over a period of time
– Does the US have a trade deficit or surplus?
• What is a trade balance?– The difference in value between a
country’s imports and exports over a period of time
– Does the US have a trade deficit or surplus?
QuickTime™ and aTIFF (Uncompressed) decompressor
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SpecializationSpecialization
• Builds and sustains a market economy• Countries specialize in producing
certain goods and services• Builds comparative advantage for
countries– The ability of a country or company to
produce a particular good more efficiently than another country or company
• Builds and sustains a market economy• Countries specialize in producing
certain goods and services• Builds comparative advantage for
countries– The ability of a country or company to
produce a particular good more efficiently than another country or company
ReviewReview
• What is a global economy?• What is the difference between
domestic and international trade?• How do countries build
comparative advantage?
• What is a global economy?• What is the difference between
domestic and international trade?• How do countries build
comparative advantage?