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Chapter Three
•
•Competing in
Competing in
Global
Global
Environments
Environments
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Global Environments - E-Commerce - Lecture Slides, Slides of Fundamentals of E-Commerce
Students of Communication, study E-Commerce as an auxiliary subject. these are the key points discussed in these Lecture Slides of E-Commerce : Global Environments, Globalization, Companies Manufacture, Finance, Market Worldwide, Potential Customers, Countries Trade, Countries, Comparative Advantage, Tariffs
Typology: Slides
2012/2013
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Chapter Three
•^ •
Competing inCompeting inGlobalGlobalEnvironmentsEnvironments
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The Global Market
-^
Globalization
means that
companies manufacture,finance, and market worldwide
-^
Canada represents a potentialmarket of only
31 million
customers
-^
There are over
6 billion
potential customers
globally
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The Theory of Comparative Advantage^ •
Countries export those goods andservices that they produce mosteffectively and efficiently • Countries import those goods andservices where they do not have thiscomparative advantage • In practice, many countries ignorethis economic principle. Theyinhibit the free flow of goods usingduties and tariffs • They attempt to give theirproducers a competitive advantage
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International Trade
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Large multinationalfirms, like Intel or Coca-Cola, do much of theinternational trade
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Recent years have seenthe small business sectorbecome more involved ininternational trade
-^
Foreign travel andimmigration often revealopportunities for trade
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International Trade -
Terminology
•^
Balance of Trade - the relationship between exportsand imports
-^
Current account - the difference between moneycoming in and going out of the country from allsources
-^
Dumping - selling cheaper in foreign markets than athome
-^
Protectionism - using government regulations to keepforeign goods out
-^
Exchange rate - the value of our currency compared toother countries’ currency
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The Canadian Trading Experience • Over 80% of our trade is with the United States ofAmerica • Over 25% of our trade is related to the autoindustry • Traditionally we have been exporters of naturalresources • In recent years, we are experiencing some successin the “Hi-tech” sector • Our future seems to lie in the “knowledge andinformation industry”
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