Name ____________________ Class __________ Date __________

Business in the Global Marketplace Organizer

Directions: Provide responses to the list of items in the space provided.
Domestic and International Businesses
Describe transactions of domestic
Describe transactions of international
businesses and where they happen.
businesses and where they happen.

Business Advantage Factors

Describe when a country may have an
Describe when a country may have a
absolute advantage.
comparative advantage.

Example country and good:

Example country and good:

Importing and Exporting Differences

Describe the activities of importing goods. Describe the activities of exporting goods.

Example goods:

Example goods:

Possible advantage(s) and

disadvantage(s) of importing goods

Possible advantage(s) and

disadvantage(s) of exporting goods

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Business in the Global Marketplace Organizer Continued

Measuring of Trade Relations: Balance of Trade or Payments Factor
Describe when a country may have a
Describe when a country may have a
balance of trade.
balance of payments.

Favorable
Exports
Imports

Year 1
Favorable

Unfavorable
Exports Imports

Money into country Money out of country

Year 2
Unfavorable

Money into country Money out of country

What is foreign debt? ____________________________________________________
______________________________________________________________________
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Business in the Global Marketplace Organizer Continued

International Currency Exchange Rate Factor
What happens at the foreign exchange market?

Describe exchange rate

Describe the main factors that can influence the international currency exchange rate
Balance of payments

Economic conditions

Political stability

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Business in the Global Marketplace Organizer Continued

International Business Environment Factor
Describe the elements of the international business environment and possible impact on
business activities
Cultural influences

Economic development

Geography

Political-legal issues

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Business in the Global Marketplace Organizer Continued

Main International Trade Barrier Factor
Describe the difference between formal trade barriers
Embargoes
Quotas
Tariffs

Why would a government

impose an embargo?

Why would a quota be set

by a company or country?

Why would a government

use a tariff?

Example of a good being

embargoed :

Example of a good with a

quota:

Example of a tariff imposed:

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Business in the Global Marketplace Organizer Continued

Encouragement of International Trade Factor
Describe the differences among factors to encourage international trade.
Common markets
Free-trade agreements
Free-trade zones

Example:

Example:

Main Global Market Entry Modes

Describe the differences among the global market main entry modes.
Franchising
Licensing
Joint venture

Examples:

Examples:

Examples:

Main International Trade Organizations

Describe the purpose of the international trade organizations.
International Monetary
World Bank
World Trade Organization
Fund

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Name ____________________ Class __________ Date __________

Absolute or Comparative Advantage Activity
Directions: Determine if the scenarios could be absolute or comparative advantage
based on the information provided, and then justify each response.
Several countries produce a good or service. Some produce more goods or services
and/or at a cost less than other countries. Use the provided table of information to
answer questions to determine which country has an absolute advantage and justify
why.
Country
Coal production in millions
China
$2,803.93
South Africa
$282.56
United States
$1,145.57
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Company
Product
A
8 cars per worker per year
B
7 cars per worker per year
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Country
Diamond production in carats
Canada
12,350
Congo
5,600
Russia
23,400
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
Company
Product
A
75 units of beef per worker per hour; 25 tortillas
B
25 units of beef per worker per hour; 75 tortillas
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

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Name ____________________ Class __________ Date __________

Business in the Global Economy Activity
Directions: For this activity, you are to create a table of countries from which items were
manufactured. Survey item labels such as clothing, electronics, furniture, and food
around your home, job, and other frequented places.
Item

Country where manufactured

List possible advantage(s) for importing goods.

______________________________________________________________________
______________________________________________________________________
List possible disadvantage(s) for prevalently importing goods.
______________________________________________________________________
______________________________________________________________________
List possible advantage(s) for exporting goods.
______________________________________________________________________
______________________________________________________________________
List possible disadvantage(s) for exporting goods.
______________________________________________________________________
______________________________________________________________________

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Name ____________________ Class __________ Date __________

Balance of Trade and Payments Activity
Balance of Trade
Directions: Display the goods imported and exported in the provided statements in a
graph, and then determine if the balance of trade is favorable or unfavorable.
$143.0 billion worth of goods were imported in November, up from $138.6 billion in
October. Foreign Trade Division, U.S. Census Bureau, Washington, D.C, October 2009
http://www.census.gov/indicator/www/ustrade.html or use the most current data available.

$94.6 billion worth of goods were exported in November, up from $93.5 billion in
October. Foreign Trade Division, U.S. Census Bureau, Washington, D.C, October 2009
http://www.census.gov/indicator/www/ustrade.html or use the most current data available.

Determine if the balance of trade is favorable or unfavorable _____________________

______________________________________________________________________
______________________________________________________________________
Balance of Payment
Directions: Read the scenario about the spending of two travelers, and then determine if
their spending could contribute to a favorable or unfavorable balance for their countries.
Balance of payment favorable or unfavorable Scenario
John, who lives in the United States, purchased clothing and souvenirs while visiting
Russia. The value of all the goods he purchased is around $2,400. In the meantime
while visiting the United States from Russia, Fatima purchased clothing and souvenirs,
toured several museums, and ate at several restaurants. She spent around $5,300.
Using the spending pattern of these two people, for which country is a balance payment
unfavorable? Support your answer.
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

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