Business Management
GLOBALIZATION
Today’s Objectives
Describe the effect of a global
marketplace on business, including
 Changes in American business
operations
 Basic business concerns & variables in
business competition
Globalization
 The worldwide
movement toward
economic, financial,
trade, and
communications
integration
 Implies that we are
more interconnected
and interdependent
What does it mean for business?
Emphasis on the
transfer of
capital, goods,
and services
across national
frontiers
Here in the United States…
 You could purchase domestic goods
that are products made by firms in
the United States.
 You could purchase foreign goods
that are products made by firms in
other countries.
How much of what you’re wearing is really Made in America?
BINGO!
Think About It
Why do we seem to have more foreign
goods from some countries over others?
Trade Agreements
Free-trade agreements
are international
agreements that
eliminate almost all
trade restrictions and
subsidies between
individual countries
and groups of
countries.
This helps with…
 Importing – buying
goods or services
made in a foreign
country
 Exporting – when a
company sells its
goods and services
to a foreign country
Think About It
Does the United States typically
IMPORT or EXPORT more goods?
Effect on American Businesses
 More e-commerce
 doing business online
 Decrease of
production jobs
 Rapid growth of
service jobs
Businesses are concerned with…
 Production costs
 Product quality
 Service quality
 Sales volume
 Profit margins
Do Work…