商务英语ch04.pptVIP

6–* business online 6–* Impact of Exchange Rates on Firm Performance International trade transactions usually require the exchange of one currency for another currency Exchange rates vary on a daily basis. Exchange rate fluctuations have a favorable or unfavorable effect on firm performance. Impact on U.S. importers Impact on U.S. exporters 6–* Impact of Exchange Rate Fluctuations on U.S. Importers When foreign currency appreciates against the U.S. dollar–the dollar weakens and loses value Causes prices of foreign supplies to increase and adversely impacts U.S. firms that import supplies. Part II: Business Environment Introduction to Business 3e 6 6–* Introduction to Business Chapter 4 Assessing Global Conditions 管理学院市场学系吴德亮 6–* [Objectives and Requirements] [1]Understand the impact of Global Conditions on the performance of business 6–* [Major points] Explain motives for engaging in international business. Describe global opportunities. Describe how firms conduct international business. Explain influence of foreign characteristics on a firm’s international business. Explain how movements in exchange rates can affect business performance. 6–* [Areas of Difficulty] Political risk, cultural shock foreign exchange rate movement; solutions to those risks on global business. 6–* Business Environment 6–* Assessing Global Conditions 6–* I Motives to Engage in International Business Attract foreign demand Competition may prevent firm from increasing market share in U.S. Changes in consumer tastes may decrease demand in U.S. Capitalize on technology Expand into countries where technology is not as advanced. 6–* The Coca-Cola Company’s Global Expansion Exhibit 6.1 6–* Approximate Hourly Compensation Costs for Manufacturing across Countries Exhibit 6.2 6–* Motives to Engage in International Business (cont’d) Use inexpensive resources Find locations where land and labor are inexpensive. Diversify internationally Reduce risk and increase performance stability