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The United States in a Global Market

The United States in a Global Market. To trace the role of trade in the development of the United States To explain the impact that imports and exports have on the U.S. economy To describe the role of direct investment and multinational corporations in the global economy.

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The United States in a Global Market

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  1. The United States in a Global Market Memory Reed Harris County High School June 2008

  2. To trace the role of trade in the development of the United States To explain the impact that imports and exports have on the U.S. economy To describe the role of direct investment and multinational corporations in the global economy To be able to identify the top 5 U.S. trading partners in imports and exports To be able to comment on the interdependence of nations to our world economy To be able to describe how marketing is involved in international trade What should you learn? Memory Reed Harris County High School June 2008

  3. The Role of Trade in the Economic Development of North America • Why did Columbus discover America? • Why was Spain, England and France interested in this new, undeveloped country? • What products did the colonists trade? Why? Memory Reed Harris County High School June 2008

  4. Trade and the New Nation • What happened to trade during the American Revolution? • Hard times provided motivation and opportunity for the new nation to develop a market economy – where supply and demand set prices. Memory Reed Harris County High School June 2008

  5. Trade and the New Nation(cont.) • 1790-1830 rapid expansion of population, agriculture, industry and land acquisition • What new lands did the U.S. acquire? • How did European trade help the U.S. grow? • How did European investments help our expansion? Memory Reed Harris County High School June 2008

  6. A Growing Influence in World Affairs • The Industrial Revolution – What does that have to do with International Marketing? • Total value of trade skyrocketed! • U.S. Companies began to invest overseas • Main trading partners – Britain, Canada & Mexico Memory Reed Harris County High School June 2008

  7. The U.S. – A World Power • Beginning around the turn-of-the-century the U.S. became an important part of world affairs. • Trade was important and was used as a bargaining chip in international negotiations Memory Reed Harris County High School June 2008

  8. A World Power (cont.) • What economic reason led the U.S. to side with the Allies in World War I? • 1920’s – Boom for most but factory workers wages and farm product prices were low. • Lower consumer spending led to cuts in production and reduced foreign investments • Result – increased unemployment, fewer exports • 1929 – What major event happened? Memory Reed Harris County High School June 2008

  9. Crash! • The stock market crash and the Great Depression cut trade almost 75% from over $14 billion in 1920 to $3.8 billion by 1933. • Recovery boosted trade to a new high by 1950 – almost $20 billion! Memory Reed Harris County High School June 2008

  10. How Did the World Wars Help the U.S. Economically? • We suffered no damage to our country – the other countries were devastated! We came out decades ahead economically. • U.S. investments and loans helped finance reconstruction overseas. • U.S. products, services and technology were needed Memory Reed Harris County High School June 2008

  11. Are We Still Ahead? • Germany & Japan have regained their economic strength (with our help) • In the 1970’s we didn’t have to worry about international business activities • What has changed? Why do we need to be concerned with international business now? Memory Reed Harris County High School June 2008

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