1.5: Doing Business Globally
Read this chapter, which discusses the importance of global trade.
Read this section to learn about why businesses are going global and the difference between imports and exports.
There are a variety of methods businesses can use to enter the global marketplace. Some carry heavier risks than others, and some require firms to give up some of their control. Read about the types of international business and rate them based on risk and control.
While international trade seems like a win-win situation for businesses, many governments impose trade restrictions such as tariffs or quotas to control how much foreign product is introduced into their country. Often, these trade restrictions are put in place to protect domestic industries or ensure a working population. Read about the trade restrictions and reflect on what would precipitate a government imposing one trade restriction rather than another.
It can be daunting to start a business in the United States. One must learn how to navigate through the bureaucratic red tape. Can you imagine how much more difficult it must be to navigate the bureaucratic red tape for more than one country? Luckily, for a business entering the global marketplace, organizations such as the World Bank and International Monetary fund, trade agreements such as GATT and NAFTA, and economic communities make the process easier to navigate.
These lectures discuss the 2008 financial crisis in the United States. In the first, we see how we can plot early warning signs for a financial crisis. The second gives an insider's view of how banking practices led to the 2008 financial crisis.