Global trading

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Deepthy Sai Manikandan

A presentation on global trade and investment

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GLOBAL TRADE & INVESTMENT ENVIRONMENT Deepthy Sai

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As the economies of countries around the world continue to develop, foreign trade and an interdependence of firms, markets, and countries continues to growth and expand. This development has lead to intense competition among different countries, industries, and firms to claim their share within the global markets. There are several major trends influencing the growth of international business, and how the players in the international arena interact. Here are 5 of the major international business trends.

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International economics deals with the economic relations among nations. The resulting interdependence is very important to the economic well-being of most nations of the world and is on the increase. The economic relations among nations differ from the economic relations among the various part of a nation. This gives rise to different problems, requiring somewhat different tools of analysis, and justifies International Economics as a distinct and separate branch of “Applied” Economics. International economics deals with 1) The Pure Theory of Trade. This examines the basis for trade and the gains from trade. 2) The Theory of Commercial Policy. This studies the reasons for and the results of obstructions to the free flow of trade. 3) The Balance of Payments. This examines a nation’s total payments to and total receipts from the rest of the world. These involve the exchange of one currency with others. 4) Adjustment in the Balance of Payments. This deals with the mechanism of adjustment to balance of payments disequilibria under different international monetary systems.

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Chapter 5: How Managers Use Balance of Payments Data – p.213 Do some research on the items in the table below and see if you see a pattern with the various country’s economies: 1. What is the G7? 2. What is the E7? G7 Countries Continent where the country lies GDP Ease of Doing Business 1. 2. 3. 4. 5. 6. 7. NOTE: When you find the GDP (Gross National Product) note the year – you may not have 2018 statistics. That is okay –find the latest data available. You may need to search for the Ranking of Ease of Doing Business – and then find the countries that make up the G7 or the E7. NEXT PAGE! E7 Countries Continent where the country lies GDP Ease of Doing Business 1. 2. 3. 4. 5. 6. 7. A. Compare the 2 groups of countries – explain your findings. Globalization Effects on Country Institutions, People and Business Chapter 3 Key Points for the Chapter Economic development comprises positive economic growth and entails changes in a country’s political, economic, and cultural institutions, as well as in individual values, attitudes, and behaviors. Economic development requires resources from public and private sectors, both internal and external. Technology transfers by international corporations comprise manufacturing technologies, management organizations, and marketing know-how. Intro: The Economic Development Process Economic development is the progress countries make in living standards as they experience positive economic growth and the changes occurring in societal and cultural institutions and values as nations move toward more advanced stages of industrialization. Economic progress demonstrates human progress, and more pragmatically, it keeps politicians in power, companies busy, and consumers (and voters) optimistic about the future. Technology Transfers International trade, investments, and global media have opened world markets up to a variety of modernizing influences. In general terms, technology transfers occur as corporations enter new markets with products, technologies, lifestyles, and business methods developed in their home and other international markets. Technology transfers first affect urban segments of developing countries where there are developed infrastructures and pocket of economically significant customers. As media become commercialization and distribution channels are built into rural areas, greater proportions of developing-country populations come into contact with modernization influences. 4 Positive Effects Positive effects occur as societies are exposed to broad varieties of products that make lives easier. Convenience products such as packaged foods, and consumer durables such as refrigerators, radios, televisions, and stoves have positive effects on consumer lifestyles. New technologies in manufacturing and distribution make products cheaper and more widely available. They provide employment opportunities for lo.

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