CHAPTER 3

Doing
Business in
Global
Markets

McGraw-Hill/Irwin Copyright © 2015 by the McGraw-Hill Companies, Inc. All rights reserved.
 LEARNING OBJECTIVES

1. Discuss the importance of the global market and the

roles of comparative advantage and absolute
advantage in global trade.

2. Explain the importance of importing and exporting,

and understand key terms used in global business.

3. Illustrate the strategies used in reaching global

markets and explain the role of multinational
corporations.

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 LEARNING OBJECTIVE

4. Evaluate the forces that affect trading in global

markets.

5. Debate the advantages and disadvantages of trade

protectionism.

6. Discuss the changing landscape of the global

market and the issue of offshore outsourcing.

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 LEILA JANAH
Samasource

• Started Samasource to help

people in developing
countries rise out of poverty.

• Janah has been working to

combat world poverty since
she was a teen.

• Employees are carefully

selected and are taught new
skills.
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 BUSINESS in the LO 3-1

GLOBAL MARKET

• Over 90% of companies

doing business globally
believe it is important
for employees to have
international
experience.
• U.S. organizations (like
UPS, MLB, the NFL and
the NBA) are also
expanding abroad.
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WORLD POPULATION LO 3-1

by CONTINENT

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WORLD POPULATION LO 3-1

GROWTH

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 LO 3-1
IMPORTING and EXPORTING

• Importing -- Buying products

from another country.

• Exporting -- Selling products

to another country.

• The U.S. is the largest

importing and the second
largest exporting nation in
the world.

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 LO 3-1
TRADING with OTHER NATIONS

• Countries with abundant natural resources (like

Venezuela or Russia) need technological
resources from other countries (like Japan).

• Global trade allows countries to produce what

they make best and buy what they need from
others.

• Free Trade -- The movement of goods and services

among nations without political or economic barriers.

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 LO 3-1
PROS and CONS of FREE TRADE

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