1. Chapter 3: Exploring Global Business

2. Learning Objectives • Explain the economic basis for international business. • Discuss the restrictions nations place on international trade, the objectives of these restrictions, and their results. • Outline the extent of international trade and identify the organizations working to foster it. • Define the methods by which a firm can organize for and enter into international markets. • Describe the various sources of export assistance. • Identify the institutions that help firms and nations finance international business.

3. The Basis for International Business • Absolute and Comparative Advantage • Exporting and Importing

4. Restrictions to International Business • Types of Trade Restrictions • Tariffs • Nontariff Barriers • Reasons for Trade Restrictions • Reasons Against Trade Restrictions

5. The Extent of International Business • The World Economic Outlook for Trade • Canada and Western Europe • Mexico and Latin America • Japan • Other Asian Countries • Emerging Europe • Commonwealth of Independent States • Exports and the U.S. Economy

6. International Trade Agreements • The General Agreement on Tariffs and Trade and the World Trade Organization • The Kennedy Round (1964–1967) • The Tokyo Round (1973–1979) • The Uruguay Round (1986–1993) • The Doha Round (2001) • World Trade and Global Economic Crisis • International Economic Organizations Working to Foster Trade

7. Methods of Entering International Business • Licensing • Exporting • Joint Ventures • Totally Owned Facilities • Strategic Alliances • Trading Companies • Countertrade • Multinational Firms

8. Sources of Export Assistance • National Export Strategy (NES) • Trade Promotion Coordinating Committee (TPCC)

9. Financing International Business • The Export-Import Bank of the United States • Multilateral Development Banks • The International Monetary Fund