Importing, Exporting, And Trade Relations PDF

CHAPTER 6 Importing, Exporting, and Trade Relations 6-1 Importing Procedures 6-2 Exporting Procedures 6-3 Importance of Trade Relations 6-4 The Nature of Competition © 2011 South-Western | Cengage Learning INTERNATIONAL BUSINESS, 4e CHAPTER...

CHAPTER 6 Importing, Exporting, and Trade Relations 6-1 Importing Procedures 6-2 Exporting Procedures 6-3 Importance of Trade Relations 6-4 The Nature of Competition © 2011 South-Western | Cengage Learning INTERNATIONAL BUSINESS, 4e CHAPTER 6 LESSON 6-1 Importing Procedures  Explain the importance of GOALS importing.  Identify the four steps for importing. © 2011 South-Western | Cengage Learning SLIDE 2 INTERNATIONAL BUSINESS, 4e CHAPTER 6 IMPORTS  Services or products bought by a company or government from businesses in other countries. © 2011 South-Western | Cengage Learning SLIDE 3 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Importance of Importing  Product demand  Lower costs  Production inputs © 2011 South-Western | Cengage Learning SLIDE 4 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Product Demand  Customers who wants a unique item or certain quality may purchase a foreign- made product.  Example: banana, cocoa, coffee consumed in the US are imported © 2011 South-Western | Cengage Learning SLIDE 5 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Lower Cost  The prices of Goods and services are constantly changing.  An item from one country may be less expensive than the same item from another country.  Electronic products manufactured in Asian countries are frequently less expensive than similar items produced elsewhere. © 2011 South-Western | Cengage Learning SLIDE 6 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Production Inputs  Companies regularly purchase raw materials and components for processing or assembly from other countries.  Examples: radios, engine, transmission, and windshield washer for many cars assembled in US come from companies in Canada, Mexico, Brazil, Japan , Korea & other country. © 2011 South-Western | Cengage Learning SLIDE 7 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Importing Activities STEP 1: Determine demand STEP 2: Contact suppliers STEP 3: Finalize purchase STEP 4: Receive goods © 2011 South-Western | Cengage Learning SLIDE 8 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Import Assistance  Customs and Border Protection (CBP)  Food and Drug Administration (FDA)  U.S. Department of Agriculture (USDA) © 2011 South-Western | Cengage Learning SLIDE 9 INTERNATIONAL BUSINESS, 4e CHAPTER For each of the following situations, predict 6 whether the imports will be successful in the Philippines. 1. Ten Thousand cases of shampoo in bottles with foreign-language labels that can be sold for a price matching the lowest-price shampoo on the market. © 2011 South-Western | Cengage Learning SLIDE 10 INTERNATIONAL BUSINESS, 4e CHAPTER 6 2. Imported clothing sized in an inconsistent manner compared with other brands © 2011 South-Western | Cengage Learning SLIDE 11 INTERNATIONAL BUSINESS, 4e CHAPTER 6 3. An Imported packaged dinner entrée that contains blue pasta. © 2011 South-Western | Cengage Learning SLIDE 12 INTERNATIONAL BUSINESS, 4e CHAPTER 6 LESSON 6-2 Exporting Procedures  Identify the steps of the exporting GOALS process.  Describe the exporting of services. © 2011 South-Western | Cengage Learning SLIDE 13 INTERNATIONAL BUSINESS, 4e CHAPTER 6 The Exporting Process STEP 1: Find potential customers STEP 2: Meet the needs of customers STEP 3: Agree on sales terms STEP 4: Deliver products or services STEP 5: Complete the transaction © 2011 South-Western | Cengage Learning SLIDE 14 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Sales Terms  Free on board (FOB)  Cost, insurance, and freight (CIF)  Cost and freight (C&F) © 2011 South-Western | Cengage Learning SLIDE 15 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Export Documents  Bill of lading  Certificate of origin © 2011 South-Western | Cengage Learning SLIDE 16 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Obstacles to Exporting  No company representatives in foreign countries  Products not appropriate for foreign consumers  Insufficient production facilities to manufacture enough goods for exporting  High costs of doing business in other countries  Difficulty understanding foreign business procedures  Difficulty obtaining payment from foreign customers © 2011 South-Western | Cengage Learning SLIDE 17 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Commonly Exported Services  Hospitality  Hotels, food service  Entertainment  Movies, music, television production, amusement parks  Financial services  Insurance, real estate © 2011 South-Western | Cengage Learning SLIDE 18 INTERNATIONAL BUSINESS, 4e CHAPTER 6 LESSON 6-3 Importance of Trade Relations  Identify the economic effects of GOALS foreign trade.  Describe the types of trade agreements between countries. © 2011 South-Western | Cengage Learning SLIDE 19 INTERNATIONAL BUSINESS, 4e CHAPTER 6 The Economic Effect of Foreign Trade  Balance of trade  Trade deficit  Trade surplus  Balance of payments  Positive, or favorable  Negative, or unfavorable © 2011 South-Western | Cengage Learning SLIDE 20 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Trade Agreements  Promote economic development  Encourage international business activities © 2011 South-Western | Cengage Learning SLIDE 21 INTERNATIONAL BUSINESS, 4e CHAPTER 6 The World Trade Organization  Deals with rules of trade between nations  Helps producers of goods and services, exporters, and importers conduct their business  Encourages international trade © 2011 South-Western | Cengage Learning SLIDE 22 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Regional Cooperation  Economic community  Common market © 2011 South-Western | Cengage Learning SLIDE 23 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Barter Agreements  Direct barter  Countertrade © 2011 South-Western | Cengage Learning SLIDE 24 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Free-Trade Zones  An area designated by a government for duty-free entry of nonprohibited goods  Commonly located at a point of entry into a nation © 2011 South-Western | Cengage Learning SLIDE 25 INTERNATIONAL BUSINESS, 4e CHAPTER 6 LESSON 6-4 The Nature of Competition  List factors that affect international GOALS business competition.  Explain the types of competitive market situations. © 2011 South-Western | Cengage Learning SLIDE 26 INTERNATIONAL BUSINESS, 4e CHAPTER 6 International Business Competition  Factors affecting competition  Number of companies  Business costs  Product differences  Benefits and concerns of competition © 2011 South-Western | Cengage Learning SLIDE 27 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Types of Competitive Situations  Pure competition  Monopolistic competition  Oligopoly  Monopoly © 2011 South-Western | Cengage Learning SLIDE 28 INTERNATIONAL BUSINESS, 4e CHAPTER 6 Competitive Market Situations Pure Competition Monopolistic Competition Many sellers Many sellers Same product Slightly different product Oligopoly Monopoly Few sellers One seller Slightly different product Usually government regulated © 2011 South-Western | Cengage Learning SLIDE 29