Name:__________________________________

Chapter 3 – Doing Business in Global Markets

http://www.youtube.com/watch?v=3FNNpUWn7hQ– Watch the Video: The Global economy

What percentage of the world’s population exists outside of the United States?

How do multinational corporations differ from other companies that participate in global business?

Distinguish between an absolute advantage and a comparative advantage.  Cite an example of a country with each and why.

Absolute Advantage:
 

Comparative advantage:
 

Define Balance of Trade, Balance of Payments and Trade Deficit:

Balance of Trade:

Balance of Payments:

Trade Deficit:

What is the current USA Trade Deficit?

.

What potential stumbling blocks affect international business?

:  

What is trade protectionism?

Import tariff
:
   

Embargo:

What is Dumping

and can you think of an example?

What is the World Trade Organization and define its role in Global Markets
:

What is the North American Free Trade Agreement and why is it important?

.

What are the six strategies for reaching global markets? 

            Name and Explain the Six Strategies.

            Research and List an example for each strategy.