4 Global Opportunities Section 4 1 Global Entrepreneurship

4 Global Opportunities Section 4. 1 Global Entrepreneurship Section 4. 2 Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business

SECTION 4. 1 Global Entrepreneurship Section Objectives • • • Describe the role of entrepreneurship in today’s 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 Global Entrepreneurship 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. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

SECTION 4. 1 Global Entrepreneurship Content Vocabulary global economy exporting importing Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business trade barrier tariff gross domestic product (GDP)

SECTION 4. 1 Global Entrepreneurship The Global Economy Entrepreneurship plays an important role in today’s multicultural global society. Technological advances and changes in trade barriers have created a global economy. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business global economy the interconnected economies of the nations of the world

SECTION 4. 1 Global Entrepreneurship The Global Economy International markets provide opportunities for entrepreneurs to engage in importing and exporting goods and services. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business exporting importing selling and shipping goods the buying or bringing in of goods to other countries from other countries to sell

SECTION 4. 1 Global Entrepreneurship Trade Barriers Have Fallen The World Trade Organization is a global coalition of governments that makes the rules that govern international trade. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

SECTION 4. 1 Global Entrepreneurship Trade Barriers Have Fallen The World Trade Organization works to eliminate or lessen trade barriers and tariffs. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business tariffsbarriers trade a type of trade barrierentering imposedorby restrictions on goods a government as a tax on leaving a country imported or exported goods

SECTION 4. 1 Global Entrepreneurship Global Opportunities A nation’s economy is measured by its gross domestic product (GDP). Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business Gross domestic product (GDP) the total value of all goods produced in a country during the year

SECTION 4. 1 Global Entrepreneurship After You Read 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. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

SECTION 4. 1 Global Entrepreneurship 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. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

SECTION 4. 1 Global Entrepreneurship 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. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

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. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

SECTION 4. 2 Ways to Enter the Global Market 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. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

SECTION 4. 2 Ways to Enter the Global Market Content Vocabulary interpreter Standard Industrial Trade Classification (SITC) codes International Business Exchange (IBEX) trade missions “best prospect” list Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business disposable income trade intermediary foreign joint venture export management company freight forwarder

SECTION 4. 2 Ways to Enter the Global Market Understanding International Business Understanding how other countries conduct business is important to your success as an entrepreneur. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

Tips for Showing Respect Dress conservatively. Do not correct other people’s 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 Ways to Enter the Global Market 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. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business interpreter a person who translates one language into or from another

SECTION 4. 2 Ways to Enter the Global Market 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. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business 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 Ways to Enter the Global Market 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). Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business 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 Ways to Enter the Global Market 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. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business “best prospect” list trade mission a compiled by the government anlist opportunity offered by the U. S. of products that countries government andother private agencies want to purchase to small businesses to travel to other countries to meet with foreign agents, distributors, or potential business partners

SECTION 4. 2 Ways to Enter the Global Market 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. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business 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 Ways to Enter the Global Market Deciding on a Product to Export An entrepreneur can expand a business into a foreign market by using a trade intermediary. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business trade intermediary an agency that serves as a distributor in a foreign country

SECTION 4. 2 Ways to Enter the Global Market 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. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business foreign joint venture an alliance between an American small business and a company in another nation

SECTION 4. 2 Ways to Enter the Global Market 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. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business freight management forwarder export 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 Ways to Enter the Global Market 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 Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

SECTION 4. 2 Ways to Enter the Global Market 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. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

SECTION 4. 2 Ways to Enter the Global Market After You Read 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. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

SECTION 4. 2 Ways to Enter the Global Market 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. Chapter 4 Global Opportunities Glencoe Entrepreneurship: Building a Business

4 Global Opportunities End of Chapter 4 Section 4. 1 Global Entrepreneurship Opportunities Section 4. 2 Ways to Enter the Global Market Glencoe Entrepreneurship: Building a Business