Business in a Global Environment

Learning Objectives

1. Explain why nations and companies participate in international trade.
2. Describe the concepts of absolute and comparative advantage.
3. Explain how trade between nations is measured.
4. Define importing and exporting.
5. Explain how companies enter the international market through licensing agreements or franchises.
6. Describe how companies reduce costs through contract manufacturing and outsourcing.
7. Explain the purpose of international strategic alliances and joint ventures.
8. Understand how US companies expand their businesses through foreign direct investments and international subsidiaries.
9. Appreciate how cultural, economic, legal, and political differences between countries create challenges to successful business dealings.
10. Describe the ways in which governments and international bodies promote and regulate global trade.
11. Discuss the various initiatives designed to reduce international trade barriers and promote free trade.