国际商务的环境Chapter 5 Economic environment facing international business.pptVIP

Chapter 5 Economic Environment for International Business Learning objectives Having read this chapter you should be able to: Be aware of the effect of world economic crisis on international business Identify the trends in world trade Explore the measurement of international trade learn the strategies for successfully developing an overseas market Warm-up: The ongoing financial crisis Starting from the bankruptcy of Leman Brothers in America on 5th September. The direct inducement: the subprime mortgage crisis taking place at Wall Street since August. The subprime mortgage It is a type of mortgage that is normally made out to borrowers with lower credit ratings. Lending institutions often charge interest on subprime mortgages at a rate that is higher than a conventional level in order to compensate themselves for carrying more risk. American housing bubble Prior to 2005 the soaring housing price Remortgaging real estate, purchased on loan, transformed into a credit card The real estate price has dramatically declined ever since 2006, resulting in the immediate rupture of chain of payment on loan The bursting of American housing bubble spread to the whole domestic financial industry, then worldwide. The ongoing financial crisis “fake prosperity” American financial system: Omnipotent (全能的, 无所不能的) As to the current worldwide recession American government has to bear most of the responsibility in the aspects of indulging loose supervision and turning a blind eye to the ineligible loan. American consumption culture crisis Text: The International Economic Environment The trend towards a global business environment Firms’ reasons for going global Measuring international trade Market entry strategies Introduction Many business organizations recognize that their growth can continue only if they exploit overseas markets. However, entering overseas markets can be extremely risky. Therefore, a good understanding of the international economic environment can be of goo