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Doing Business in Global Markets - Coggle Diagram
Doing Business in Global Markets
Dynamic Global Market
Countries are constantly exchanging materials with other countries.
Why Trade with Other Nations?
Because, no matter how advanced in technology a country is, it will still need other products that the country couldn't produce by itself.
Getting Involved in Global Trade
Exporting Goods and Services
Measuring Global Trade
Balance of trade can be either favorable (trade surplus) or unfavorable (trade deficit)
Importing Goods and Services
Comparative and Absolute Advantage
Import and export
Strategies for Reaching Global Markets
There are 7 strategies which are: Licensing, exporting, franchising, contract manufacturing, international joint venture and strategic alliances, and foreign direct investment.
Forces Affecting Trading in Global Markets
Economic and Financial forces
Legal and Regulatory forces
Sociocultural forces
Physical and Environmental forces
Trade Protectionism
There are organizations and agreements that allows trading to be carried out safely. Many countries apply some rules to protect local businesses.
Future of Global Trade