CH 04

4
Global Opportunities
Section
4.1
Global Entrepreneurship Ways to Enter the Global Market
Section
4.2
Glencoe Entrepreneurship: Building a Business
SECTION
4.1
Global Entrepreneurship
Section Objectives
Describe the role of entrepreneurship in todays multicultural, global economy. Explain why the global market is important. List current trends that provide both domestic and global opportunities for entrepreneurs.
Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business
SECTION
4.1
The Main Idea

The countries of the world are linked in a global economy made possible by free trade agreements and advances in communication technology. International markets present opportunities in all regions of the world.
SECTION
4.1
Content Vocabulary
global economy exporting importing trade barrier tariff gross domestic product (GDP)
SECTION
4.1
The Global Economy
Entrepreneurship plays an important role in todays multicultural global society. Technological advances and changes in trade barriers have created a global economy.
global economy
the interconnected economies of the nations of the world
SECTION
4.1
The Global Economy
International markets provide opportunities for entrepreneurs to engage in importing and exporting goods and services.
exporting importing the selling shipping goods buying and or bringing in of goods to other countries from other countries to sell
SECTION
4.1
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
Trade Barriers Have Fallen
The World Trade Organization works to eliminate or lessen trade barriers and tariffs.
tariffs trade barriers a type of trade barrierentering imposed by restrictions on goods or a government as a tax on leaving a country imported or exported goods
SECTION
4.1
A nations economy is measured by its gross domestic product (GDP).
Gross domestic product (GDP)
the total value of all goods produced in a country during the year
SECTION
4.1
After You Read

1. Describe the role of small business and entrepreneurship in todays 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
After You Read

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
After You Read

3. Discuss how the global market provides domestic and global opportunities for entrepreneurs.
Opportunities lie in every part of the world where customers need or want products made in the United States and from which 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
4.2
Ways to Enter the Global Market
Section Objectives
Identify the benefits and risks of international trade. Explain how to find the best international markets. Compare and contrast importing and exporting.
SECTION
4.2
The Main Idea

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

disposable income trade intermediary foreign joint venture export management company freight forwarder
Content Vocabulary
interpreter Standard Industrial Trade Classification (SITC) codes International Business Exchange (IBEX) trade missions best prospect list
SECTION
4.2
Understanding International Business

Understanding how other countries conduct business is important to your success as an entrepreneur.
Tips for Showing Respect

Dress conservatively. Do not correct other peoples language. Be prepared to remove your shoes in some situations. Respect different tastes in food. Do your homework before the first meeting. Build a relationship before you do business. If necessary, bring an interpreter.
17
SECTION
4.2
Tips for Showing Respect
It is important to show respect and understanding for the cultures of the people with whom you do business. An interpreter will help ensure that your communications to others are accurate.
interpreter
a person who translates one language into or from another
SECTION
4.2
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.
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
SECTION
4.2
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).
International Business Exchange (IBEX) the electronic commerce system that allows businesses to find trading partners and sell products and services anywhere in the world
SECTION
4.2
Other Sources of Help
A small business with products on the governments best prospect list will gain the chance to go on a trade mission.
best mission trade prospect list an a list opportunity compiled by offered the government by the U.S. of products that government andother private countries agencies want to small to purchase businesses to travel to other countries to meet with foreign agents, distributors, or potential business partners
SECTION
4.2
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.
disposable income
money people have to spend after paying for necessary expenses
Where to Find Import Opportunities

Attend trade shows.
Read trade publications and catalogs.
Research the market.
Talk to potential customers.
23
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.

24
SECTION
4.2
Deciding on a Product to Export
An entrepreneur can expand a business into a foreign market by using a trade intermediary.
trade intermediary
an agency that serves as a distributor in a foreign country
SECTION
4.2
Some entrepreneurs find it helpful to establish a foreign joint venture in order to gain entry into a new global market.
foreign joint venture
an alliance between an American small business and a company in another nation
SECTION
4.2
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.
freight forwarder export management a company that arranges an organization that handles all of shipments and prepares the tasks related to exporting for a necessary exporting paperwork manufacturer
SECTION
4.2
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
After You Read

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 form of opportunity; there are many barriers and little government support for business owners.
SECTION
4.2
After You Read

2. Explain how to find the best international markets.
The U.S. Census Bureaus 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
After You Read

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.
End of
Chapter 4
Section
4.1
Global Global Entrepreneurship Opportunities

Section
4.2
Glencoe Entrepreneurship: Building a Business

CH 04

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4

Global Entrepreneurship Ways to Enter the Global Market

Glencoe Entrepreneurship: Building a Business

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

The Main Idea

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

The Global Economy

the interconnected economies of the nations of the world

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

The Global Economy

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

Trade Barriers Have Fallen

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

Trade Barriers Have Fallen

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

A nations economy is measured by its gross domestic product (GDP).

Gross domestic product (GDP)

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

After You Read

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

After You Read

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

After You Read

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

Ways to Enter the Global Market

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

Ways to Enter the Global Market

The Main Idea

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

Ways to Enter the Global Market

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

Ways to Enter the Global Market

Understanding International Business

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

Tips for Showing Respect

Ways to Enter the Global Market

Tips for Showing Respect

a person who translates one language into or from another

Ways to Enter the Global Market

Strategies for Entering International Markets

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

Ways to Enter the Global Market

Other Sources of Help

Ways to Enter the Global Market

Other Sources of Help

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

Ways to Enter the Global Market

Deciding on a Product to Export

money people have to spend after paying for necessary expenses

Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

Where to Find Import Opportunities

Read trade publications and catalogs.

Research the market.

Talk to potential customers.

Where to Find Export Opportunities

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.

Ways to Enter the Global Market