import & export basics memory reed harris county high school june 2008
TRANSCRIPT
Import & Export Basics
Memory Reed Harris County High School June 2008
Imports And Exports
What are imports?
What are exports?
Memory Reed Harris County High School June 2008
Are imports good or bad? Why?
Are exports always good for our economy?
How could they hurt our economy?
Memory Reed Harris County High School June 2008
Growth Rate of U.S. Exports & Imports
Trade Surplus Trade Deficit Service vs. Merchandise
(goods) Big trade deficits –
merchandise Trade surplus – services Combined service &
merchandise imports & exports = dominant country in international trade
Why?
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Memory Reed Harris County High School June 2008
Direct Investment Across Borders
Imports and exports aren’t everything
Direct Investment – The purchase of assets by individuals or companies in one country from individuals or companies in another country
Assets – What are they?
Memory Reed Harris County High School June 2008
Two Perspectives of Investment
Foreign investments in the U.S.
U.S. Direct Investment Abroad
Memory Reed Harris County High School June 2008
Are increasing foreign investments good for the U.S.?
Give control to firms in other countries – how could that affect us?
Investment indicates confidence in the future of U.S. businesses
Who invests in us the most? Japan Canada U.K.
Memory Reed Harris County High School June 2008
Increased U.S. Investment in other Countries
Canada Great Britain Germany The Netherlands
Switzerland Japan Mexico
Memory Reed Harris County High School June 2008
Multinational Companies
Companies conducting business from bases in more than one country
Are there any in our county?
How many can we name?
Memory Reed Harris County High School June 2008
Dimension of International Trade for the U.S. – Major Trading Partners Imports
China Canada Mexico Japan Germany
Exports Canada Mexico China Japan United Kingdom
Memory Reed Harris County High School June 2008
A Developing Global Economy
THE U.S. IS THE LARGEST ECONOMY!
How do we know? How do we measure?
GDP – Value of all goods & services produced within a nation
GNP – Value of all goods & services produced by a nation inside & outside its borders
Memory Reed Harris County High School June 2008
Per Capita? (Per Person)
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Gross Domestic Product Per Capita in 2007
Switzerland - $41,100 U.S. - $45,800 Japan - $33,600
Memory Reed Harris County High School June 2008
What is Happening?
Interdependence among nations is increasing
The result – One Global Economy
Memory Reed Harris County High School June 2008
The Role of Marketing in International Trade
Our Focus! Marketing – The process of creating exchanges
of ideas, goods & services that satisfy individual and organizational goals.
Marketing is involved beginning to end in business
International vs. Domestic Marketing – What’s the difference? Where it takes place!
Memory Reed Harris County High School June 2008
Functions of Marketing
Market planning Product/service
management Distribution Pricing Promotion
Selling Marketing-information
management Financing Risk management
Memory Reed Harris County High School June 2008
MARKETING CONCEPT (Important!)
To have the right product or service in the right place (market), at the right time, for the right price, and supported by appropriate promotion.
The above is also called the “Marketing Mix” (4 P’s) – Product – Price – Place – Promotion
Memory Reed Harris County High School June 2008
International Marketing
Using different techniques for achieving this marketing concept is often necessary in international markets because of the varied customs, legal regulations, political environments and economic conditions.
Memory Reed Harris County High School June 2008
Memory Reed Harris County High School
June 2008
THE END!