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Trade in the Modern World
Trade in the Modern World
Unit 1 Overview – BUSINESS FUNDAMENTALS
Unit 1 Overview – BUSINESS FUNDAMENTALS
Key Terms
Key Terms
Chapter Objectives
Chapter Objectives
International Business Practices
International Business Practices
International Business Practices
International Business Practices
International Business Practices
International Business Practices
International Business Practices
International Business Practices
International Business Practices
International Business Practices
International Business Practices
International Business Practices
Unit 1 Overview – BUSINESS FUNDAMENTALS
Unit 1 Overview – BUSINESS FUNDAMENTALS
HOW would you gain access to international markets
HOW would you gain access to international markets
1. Licensing Agreement
1. Licensing Agreement
LICENSING AGREEMENT - example
LICENSING AGREEMENT - example
2. Exclusive Distribution Rights
2. Exclusive Distribution Rights
Exclusive Distribution Rights - example
Exclusive Distribution Rights - example
3. Franchise
3. Franchise
Franchise - example
Franchise - example
Franchise
Franchise
4. Joint venture
4. Joint venture
Joint venture - examples
Joint venture - examples
Joint venture
Joint venture
5. Foreign subsidiaries
5. Foreign subsidiaries
A SUBSIDIARY of TOYOTA
A SUBSIDIARY of TOYOTA
CLASWORK
CLASWORK

Презентация на тему: «Trade in the Modern World». Автор: TEP. Файл: «Trade in the Modern World.ppt». Размер zip-архива: 2275 КБ.

Trade in the Modern World

содержание презентации «Trade in the Modern World.ppt»
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1 Trade in the Modern World

Trade in the Modern World

CHAPTER 2:

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Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Chapter 2: TRADE IN THE MODERN WORLD

2 Unit 1 Overview – BUSINESS FUNDAMENTALS

Unit 1 Overview – BUSINESS FUNDAMENTALS

Chapter 2 – International Business Practices

Chapter 2 – Access to Markets

Chapter 2 – Trade Barriers

Chapter 2 – Currency Fluctuations

Culminating Activity for Unit 1 – Unit Test Tentative Date Oct 22nd, 2015

3 Key Terms

Key Terms

trade embargo trade sanctions exchange rate floating rate currency revaluation currency devaluation terms of trade hard currencies soft currencies currency speculating

importing global sourcing exporting value added licensing agreement exclusive distribution rights franchise joint venture foreign subsidiary protectionism trade quotas

Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Chapter 2: TRADE IN THE MODERN WORLD

4 Chapter Objectives

Chapter Objectives

By the time you finish this chapter, you should be able to: Identify the types of international businesses Describe the impact technology has had on the international business environment Identify the factors that affect foreign exchange rates Explain how changes in the value of the Canadian dollar can affect business opportunities Identify the types of products that trade freely into and out of Canada and those that are restricted in their movement Identify and locate on a map Canada’s major trading partners

Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Chapter 2: TRADE IN THE MODERN WORLD

5 International Business Practices

International Business Practices

Reasons that Canada trades: Company growth Entry into new markets Expanded customer base Increased profits Access to inexpensive supplies Lower labor costs Access to financing

Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Chapter 2: TRADE IN THE MODERN WORLD

© iStockphoto.com

6 International Business Practices

International Business Practices

Foreign portfolio investment Investment in businesses located outside of Canada through ______________________________ Allows Canadians to spread out their investments, (diversify) which is _________________ than investing in just one area e.g. money markets, capital investments Also provides ________________ and ________________________

Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Chapter 2: TRADE IN THE MODERN WORLD

7 International Business Practices

International Business Practices

_____________________ To bring products or services into a country, for use by another business (B2B) or for resale. The majority of the goods that Canada imports come from the United States. Table 2.1 Page 37 _______________________ The process of a company buying equipment, capital goods, raw materials, or _______________ from around the world.

Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Chapter 2: TRADE IN THE MODERN WORLD

© iStockphoto.com

8 International Business Practices

International Business Practices

____________________ To send goods or services to another country, for use by a business or for resale. The majority of goods that Canada exports go to the United States. (see Table 2.2 P. 38)

Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Chapter 2: TRADE IN THE MODERN WORLD

9 International Business Practices

International Business Practices

_____________________ The amount of worth that is added to a product at each stage of processing. It is the difference between the cost of the raw materials and the finished goods.

Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Chapter 2: TRADE IN THE MODERN WORLD

10 International Business Practices

International Business Practices

Chapter 2: TRADE IN THE MODERN WORLD

Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

11 Unit 1 Overview – BUSINESS FUNDAMENTALS

Unit 1 Overview – BUSINESS FUNDAMENTALS

Chapter 2 – International Business Practices

Chapter 2 – Access to Markets

Chapter 2 – Trade Barriers

Chapter 2 – Currency Fluctuations

Culminating Activity for Unit 2 – Unit Test Tentative Date Oct 22, 2015

12 HOW would you gain access to international markets

HOW would you gain access to international markets

International Business Practices

Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Chapter 2: TRADE IN THE MODERN WORLD

13 1. Licensing Agreement

1. Licensing Agreement

Licensing agreement …… An agreement that________________________ _______________a product, service, brand name, or patent _____________________________. Usually used for a manufacturing process. Usually for a specific period of time. e.g. Parent company sends management expertise to foreign country to set up operations.

14 LICENSING AGREEMENT - example

LICENSING AGREEMENT - example

Partners Applaud Microsoft And Asus Patent Licensing Agreement Expansion by Lindsey O'Donnell on October 2, 2015, 6:08 pm EDT Partners cheered an extended patent licensing agreement between Microsoft and phone manufacturer Asus, saying it could pave the way for tighter integration between the two companies on Android smartphones and tablets. Partners say that means they could start seeing Microsoft Office productivity apps and other services pre-installed on Asus' portfolio of mobile devices, such as its ZenFone and Transformer Pad, as well as new product solutions for both companies. "Microsoft software, including Office, on the entire line of Asus Android smartphones and tablets, is a coup for both organizations in the struggle for an advantage in the uber-competitive mobile market," said Douglas Grosfield, president and CEO of Xylotek Solutions, a Cambridge, Ontario-based Microsoft partner, in an email to CRN.

15 2. Exclusive Distribution Rights

2. Exclusive Distribution Rights

Exclusive distribution rights …. A form of licensing agreement that grants _____________the right to be the________ _______________of a product in a specific geographic area or country. Used as an _________ _________ into a foreign market.

16 Exclusive Distribution Rights - example

Exclusive Distribution Rights - example

MTG Acquires Exclusive Distribution Rights to NHL Ice Hockey “This distribution partnership gives NHL fans in the Nordic countries unprecedented access to our games and our players. It’s a win for NHL hockey and a win for our fans.” Modern Times Group the international entertainment broadcasting group, today announced that it has acquired the exclusive distribution rights to the National Hockey League (NHL) in Sweden, Norway, Denmark and Finland from Medge Consulting. The rights include, but are not limited to, exclusive live coverage on free-TV, pay-TV and the internet, until the end of the 2015-16 season. MTG has held rights to NHL games since October 2009.

17 3. Franchise

3. Franchise

Franchise An agreement granted to an individual or group by a company to ______________________________ ______________________________. For a ________, the franchisor provides support to the franchisee in the areas of financing, operations, human resources, marketing, advertising, quality control, etc. Must follow all the franchisor’s (parent company’s) rules!

Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Chapter 2: TRADE IN THE MODERN WORLD

18 Franchise - example

Franchise - example

FRANCHISOR

FRANCHISEE

19 Franchise

Franchise

BENEFITS: 1. ____________________ 2. EXPERT KNOWLEDGE AND RESEARCH 3. ___________________ DRAWBACKS: 1. _______________ 2. STRICT RULES 3. _________________

20 4. Joint venture

4. Joint venture

MOST foreign investment is a joint venture!

Joint venture A common type of international business, in which a ______________________________ by two businesses, one of which is usually located in the country where the new company is established. Why? To gain access to makets, products, customers

Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Chapter 2: TRADE IN THE MODERN WORLD

21 Joint venture - examples

Joint venture - examples

Campbell Swire (Shanghai, China) Campbell will have 60% ownership

Sharp Display Products Corporation (SDP)

BYD-Daimler Electric Car BYD Co. and Daimler Mercedes-Benz Chinese battery and auto producer

22 Joint venture

Joint venture

MANY Joint Ventures FAIL! Why? Negative impact of external influences (e.g. a financial crisis, political instability) ______________________________ Common and separate needs and wants must be considered _________ company’s goals and roles needs to be agreed upon _________ company’s cultural differences and business methodologies

23 5. Foreign subsidiaries

5. Foreign subsidiaries

Foreign subsidiaries Often referred to as a wholly owned subsidiary, a ______________________that is run as an ______________________ in a country outside of the one in which the parent company is located. The parent company often sets financial targets, and allows the ___________________________ ___________________as long as those targets are being met. ______________________ decision-making process.

Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Chapter 2: TRADE IN THE MODERN WORLD

24 A SUBSIDIARY of TOYOTA

A SUBSIDIARY of TOYOTA

Toyota subsidiary's new Miyagi plant rolls out first export batch (January 11, 2011)

Toyota subsidiary's new Miyagi plant rolls out first export batch

SENDAI (Kyodo) A new plant operated by a Toyota Motor Corp. subsidiary in Miyagi Prefecture began rolling out subcompacts Tuesday for export. The first 30 Yaris Sedan subcompacts — the first batch manufactured by Central Motor Co. at its new plant in Ohira — are being shipped from Sendai to Nagoya before being exported to the United States and Europe, the company said. …….. the automaker aims to reinforce its capacity so it can manufacture and ship 250 vehicles per day by the end of this month after its operation gets back in stride………The Tohoku region, characterized by the Miyagi plant, is the third production hub of the country's top automaker. Toyota's other hubs include the Tokai region in central Honshu and northern Kyushu.

25 CLASWORK

CLASWORK

Read P. 41 – Toxic E-Waste Pouring into the Third World Answer 4 questions. Research StEP (E-waste initiatives). www.step-initiatives.org Briefly describe the objectives and project initiatives of the 5 taskforces identified on their website (e.g. ReUse) 4. Answer Q’s p. 58 KNOWLEDGE #2 – 6 THINKING #13

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