Global
Opportunities
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Global Opportunities
Chapter 4
Global Opportunities
4.1
Global Entrepreneurship
4.2
Ways to Enter the Global Market
2
Global Opportunities
4.1
Describe the role of small business and
entrepreneurship in today’s multicultural, global
economy.
Explain why the global market is important.
Discuss how to recognize and examine current
trends that provide both domestic and global
opportunities for entrepreneurs.
Section 4.1 Global Entrepreneurship
3
Global Opportunities
4.1
The countries of the world are linked in a global
economy made possible by free trade agreements
and advances in communications technology.
International markets present opportunities in all
regions of the world.
Section 4.1 Global Entrepreneurship
4
Global Opportunities
4.1
global economy
exporting
importing
Section 4.1 Global Entrepreneurship
trade barrier
tariff
gross domestic product (GDP)
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Global Opportunities
The Global Economy
Entrepreneurship plays an
important role in today’s
multicultural global society.
global economy the
interconnected
economies of the nations
of the world
Technological advances
and changes in trade
barriers have created a
global economy.
Section 4.1 Global Entrepreneurship
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Global Opportunities
The Global Economy
International markets
provide opportunities for
entrepreneurs to engage in
importing and exporting
goods and services.
Section 4.1 Global Entrepreneurship
importing the buying or
bringing in goods from
other countries to sell
exporting the selling
and shipping of goods to
other countries
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Global Opportunities
Trade Barriers Have Fallen
The World Trade Organization is a global coalition
of governments that makes the rules that govern
international trade.
Section 4.1 Global Entrepreneurship
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Global Opportunities
Trade Barriers Have Fallen
The World Trade
Organization works to
eliminate or lessen trade
barriers and tariffs.
trade barriers a
restriction on goods
entering or leaving a
country
tariffs a type of trade
barrier imposed by a
government as a tax on
imported or exported
goods
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Global Opportunities
Global Opportunities
A nation’s economy is
measured by its gross
domestic product (GDP).
Section 4.1 Global Entrepreneurship
gross domestic product
(GDP) the total value of
all goods produced in a
country during the year
10
Global Opportunities
4.1
1. Describe the role of small business and
entrepreneurship in today’s multicultural,
global economy.
Small businesses and entrepreneurs are going
global to take advantage of the opportunities to
do business with other countries.
Section 4.1 Global Entrepreneurship
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Global Opportunities
4.1
2. Explain why the global market is important.
The global market holds many opportunities for
growing businesses because it is many times the
size of the U.S. market.
Section 4.1 Global Entrepreneurship
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Global Opportunities
4.1
3. Discuss how the global market provides
domestic and global opportunities for
entrepreneurs.
Opportunities lie in every part of the world where
customers need and/or want products made in the United
States and where products not found in the United States
can be imported. Huge opportunities are available in Asia,
Latin America, and Europe and in developing nations.
Section 4.1 Global Entrepreneurship
13
Global Opportunities
4.2
Describe the benefits and risks of international
trade.
Explain how to find the best international
markets.
Compare and contrast importing and exporting.
Section 4.2 Ways to Enter the Global Market
14
Global Opportunities
4.2
To conduct international business successfully, you
must understand foreign customs and cultures.
Whether you choose to import or export products,
the international market presents many profitable
business opportunities.
Section 4.2 Ways to Enter the Global Market
15
Global Opportunities
4.2
interpreter
Standard Industrial Trade
Classification (SITC) codes
International Business
Exchange (IBEX)
trade missions
“best prospect” list
Section 4.2 Ways to Enter the Global Market
disposable income
trade intermediary
foreign joint venture
export management company
freight forwarder
16
Global Opportunities
Understanding
International Business
Understanding how other countries conduct
business is important to your success as an
entrepreneur.
Section 4.2 Ways to Enter the Global Market
17
Tips for Showing Respect
Dress conservatively and in dark colors.
Do not correct other people’s language.
Be prepared to remove your shoes in some situations.
Do not comment negatively on food.
Do your homework before a meeting.
Build a relationship before you do business.
Bring your own interpreter.
Section 4.2 Ways to Enter the Global Market
18
Global Opportunities
Tips for Showing Respect
It is important to show
respect and understanding
for the cultures of the
people with whom you do
business.
interpreter a person
who translates one
language into or from
another
An interpreter will help
ensure that your
communications to others
are accurate.
Section 4.2 Ways to Enter the Global Market
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Global Opportunities
Strategies for Entering
International Markets
One good resource in
finding an international
market for your product or
service is using Standard
Industrial Trade
Classification (SITC)
codes.
Section 4.2 Ways to Enter the Global Market
Standard Industrial
Trade Classification
(SITC) codes a system
that details the kinds of
products that are traded
in specific countries and
how well certain products
sell in different markets
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Global Opportunities
Other Sources of Help
There are many sources to
help entrepreneurs locate
the best market for their
products or services.
Entrepreneurs who want to
sell online should contact
the U.S. Chamber of
Commerce regarding its
International Business
Exchange (IBEX).
Section 4.2 Ways to Enter the Global Market
International Business
Exchange (IBEX) the
electronic commerce
system that allows
businesses to find trading
partners and sell products
and services anywhere in
the world
21
Global Opportunities
Other Sources of Help
A small business with
products on the
government’s “best
prospect” list will gain the
chance to go on a trade
mission.
Section 4.2 Ways to Enter the Global Market
“best prospect” list a list
compiled by the government
of products that other
countries want to purchase
trade mission an
opportunity offered by the
U.S. government and private
agencies to small
businesses to travel to other
countries to meet with
foreign agents, distributors,
or potential business
partners
22
Global Opportunities
Deciding on a Product
to Export
To be successful as an
exporter of consumer
products, it helps to market
to countries to sell where
people have enough
disposable income.
Section 4.2 Ways to Enter the Global Market
disposable income
money people have to
spend after paying for
necessary expenses
23
Where to Find Import Opportunities
Attend trade shows.
Read trade publications and catalogs.
Research the market.
Talk to potential customers.
Section 4.2 Ways to Enter the Global Market
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Where to Find Export Opportunities
Establish an e-commerce web site
Establish a foreign joint venture
Use an export management company
Hire a freight forwarder
License foreign businesses to sell your products
Use a trade intermediary
Section 4.2 Ways to Enter the Global Market
25
Global Opportunities
Deciding on a Product
to Export
An entrepreneur can
expand a business into a
foreign market by using a
trade intermediary.
Section 4.2 Ways to Enter the Global Market
trade intermediary an
agency that serves as a
distributor in a foreign
country
26
Global Opportunities
Where to Find Export
Opportunities
Some entrepreneurs find it
helpful to establish a
foreign joint venture in
order to gain entry into a
new global market.
Section 4.2 Ways to Enter the Global Market
foreign joint venture
an alliance between an
American small business
and a company in another
nation
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Global Opportunities
Where to Find Export
Opportunities
An entrepreneur wishing to
export goods or services to
another country may
employ the services of an
export management
company and/or a freight
forwarder.
Section 4.2 Ways to Enter the Global Market
export management an
organization that handles
all the tasks related to
exporting for a
manufacturer
freight forwarder a
company that arranges
shipments and prepares
necessary exporting
paperwork
28
Global Opportunities
Things to Consider Before
Going Global
When entrepreneurs think about going global they
should make sure they have:
solutions
a new idea
a market for the product or service
the ability to handle risk and frustration
good contacts in other countries
Section 4.2 Ways to Enter the Global Market
29
Global Opportunities
4.2
1. Describe the benefits and risks of
international trade.
The benefits of international trade include being able to
purchase goods or services from and sell them to other
countries and to manufacture in other countries. Countries
with unstable governments provide a riskier due to form of
opportunity; there are many barriers and little government
support for business owners.
Section 4.2 Ways to Enter the Global Market
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Global Opportunities
4.2
2. Explain how to find the best international
markets.
The U.S. Census Bureau’s Guide to Foreign Trade
Statistics helps in locating sources for various trade
statistics. Standard Industrial Trade Classification
(SITC) codes tell what kinds of products are traded in
specific countries.
Section 4.2 Ways to Enter the Global Market
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Global Opportunities
4.2
3. Compare and contrast importing and
exporting.
Importing is buying products from other
countries to resell in your own country.
Exporting is selling and shipping goods to
other countries.
Section 4.2 Ways to Enter the Global Market
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Global Opportunities
International
E-Commerce
Overseas markets represent an enormous economic
opportunity for e-commerce enterprises, but doing business
in another country can be complex.
Entrepreneurs must be concerned with language, currency,
culture, and country regulations.
Section 4.2 Ways to Enter the Global Market
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Global Opportunities
Tech Terms
exchange rate
the rate at which one currency is converted into another
graphic user interface
the design, content, and navigation of a Web site
import regulations
the rules that govern the types and amounts of products that can be
sold, packing that can be used, and taxation
Section 4.2 Ways to Enter the Global Market
34
Global Opportunities
Tech Terms
real time
the actual time that something takes place
translation
the process of changing one written communication into a second
language with the same meaning
Section 4.2 Ways to Enter the Global Market
35
End of
Global
Opportunities
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