introduction to management—ch06讲义教材.ppt

Global Environment Chapter 6 How firms conduct international business Importing Import foreign supplies that are less expensive or a higher quality than alternative U.S. supplies The degree to which a firm imports supplies is influenced by government trade barriers Tariff Quota Exporting Balance of trade Trade deficit Direct foreign investment (DFI) Strategic alliances How firms conduct international business Importing Exporting Direct foreign investment (DFI) Reduce transportation costs Avoid trade barrier Advanced technology Reduce labor costs Strategic alliances Joint venture The U.S. firm may produce a product and send it to a non-U.S. firm, which sells the product in that countries. The two firms both are involved in production. International licensing agreement The foreign firm is given the technology to produce the products. As the foreign firm sells products, it channels a portion of revenue to the licensing firm. How foreign characteristics influence international business Culture Because cultures vary, a firm must learn a foreign country’s culture before it engages in international business. Economic system A country’s economic system reflects the degree of government ownership of businesses and intervention in business. Capitalism Communism Socialism Privatization Economic conditions Economic growth Inflation Exchange rates Political risk How Exchange rate movements can affect performance International trade transactions typically require the exchange of one currency for another. Impact of a weak dollar on U.S. importers Appreciates The cost of the supplies has increased. A weak dollar adversely affects U.S. firms that frequently import supplies. Impact of a strong dollar on U.S. importers Depreciates The cost of the supplies has been reduced. A strong dollar favorably affects U.S. firms that frequently import supplies. Impact of a weak dollar on U.S. exporters Impact of a strong dollar on U.S. exporters