Chapter 4
Managing in a Global Environment
Trade Agreements:
1. European Union-an attempt to reduce trade barriers between 15
European countries.
Euro-Dollar
2. NAFTA - promotes free trade between Canada,US,and Mexico.
It eventually eliminated all barriers to trade.
How does a company go international:
1. Internet
2. Exporting to other countries
3. Contractual agreements. Establish relationships with a host company
or host wholesaler.
4. International investment
Other factors
- Legal
- Economic-exchange rates, inflation, etc
-Cultural
Family, social network, quality of life, etc.
-Infrastructure
-Technological
-Patriotism
A. Tariff
(Financial and
Administrative)
B. Quantity restrictions
C. Full embargos
Chapter 3
1. Trade Agreements
2. Going international
3. Other issues