...International Trade Definition International Trade is usually referred to the exchange of goods, and services across international borders or territories. In most countries, it represents a significant share of gross domestic product (GDP). In 2010, the value of international trade achieved 19 trillion (current US) dollars, i.e. about 30% of the world GDP. That is, about one third of the produced goods and services are exchanged internationally around the world. This type of trade gives rise to a world economy, in which prices, or supply and demand, affect and are affected by global events. Political change in Asia, for example, could result in an increase in the cost of labor, thereby increasing the manufacturing costs for an American sneaker company based in Malaysia, which would then result in an increase in the price that you have to pay to buy the tennis shoes at your local mall. A decrease in the cost of labor, on the other hand, would result in you having to pay less for your new shoes. Trading globally gives consumers and countries the opportunity to be exposed to goods and services not available in their own countries. Almost every kind of product can be found on the international market: food, clothes, spare parts, oil, jewelry, wine, stocks, currencies and water. Services are also traded: tourism, banking, consulting and transportation. A product that is sold to the global market is an export, and a product that is bought from the global market is an import. Imports...
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...Groupon is a daily-deal site offering unbeatable deals on the best stuff to do, eat, see, and buy. Groupon is revolutionizing local commerce and helping to make people's lives exciting by bringing amazing experiences within reach. It uses collective-buying power to extend unmatched prices and provide significant benefits to both businesses and consumers. By bringing the brick and mortar world of local commerce onto the Internet, Groupon is creating a new way for local merchant partners to attract customers and sell goods and services. They provide consumers with savings and help them discover what to do, eat, see and buy in the places where they live and work. Groupon evolved from Founder and CEO Andrew Mason’s first website, “The Point,” which was launched in November 2007. Deploying a similar concept of group persuasion, The Point was about social action. People were asked to give money as a group once a ‘tipping point’ had been reached showing that they were taking a stand. The Point failed to attract enough advertising revenues to stay in business, but it reinforced for Mason and his investors how powerful group action can be. Andrew Mason and his team launched Groupon in November 2008 in Chicago to focus on collective buying power. They saw that by using the framework of The Point, they could help other city-dwellers obtain affordable access to goods and services without overwhelming them by the sheer number of choices. Groupon started out offering one deal per day. Groupon...
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...7 | | 12% | 14% | 8 | | 12% | 16% | 9 | | 12% | 18% | | Year 1 | Year 2 | Year 3 | 1 | | | 14% | 2 | | | 16% | 3 | | | 18% | | Cp Bond | Zero C1 | Zero C2 | Zero C3 | MIN | 98.232 | | 85.852 | 72.756 | MAX | 104.426 | | 89.031 | 78.098 | AVG | 101.285 | 96.154 | 87.432 | 75.387 | At the beginning of year 1 , Zero C1 would matured and no longer tradable. For the other three bonds, we have private information which enables us to cut out an interest rate, lefting with 6 scenarios. TRADE AT BEG YEAR 1 (interest not LOW) | | Cp Bond | Zero C1 | Zero C2 | Zero C3 | MIN | 92.161 | | 89.286 | 75.666 | MAX | 96.810 | | 90.909 | 79.745 | AVG | 94.464 | | 90.097 | 77.686 | TRADE AT BEG YEAR 1 (interest notMIDDLE) | | Cp Bond | Zero C1 | Zero C2 | Zero C3 | MIN | 92.161 | | 89.286 | 75.666 | MAX | 98.603 | | 92.593 | 81.222 | AVG | 95.346 | | 90.939 | 78.411 | TRADE AT BEG YEAR 1 (interest not HIGH) | | Cp Bond | Zero C1 | Zero C2 | Zero C3 | MIN | 93.837 | |...
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...| | | | | McDonalds & Starbucks Architectual Design, E-commerce Strategies and Service | [ ] [ ]Wayne McFarland JrGlobal Business Management Dr. Donna Galla July 22, 2012 | McDonalds & Starbucks Architectual Design, E-commerce Strategies and Service How do you think McDonalds and Starbucks are able to establish their brands to fit local markets through architectural design, e-commerce strategies and service to accommodate local markets and cultures? McDonalds marketing mix is strategic because of the diverse approaches that are used. They use a strategy that is known as the 4P’s (product, price, promotion, and placement) that they use that is a way of them carefully making decisions around their brand. One thing that has kept McDonalds striving in the local and global market is an idea they use similar to Starbucks “think global, act local”. This idea is what they use as well as Starbucks to combine globalization and internationalism into their strategic plan. For example, McDonalds uses pictographs (symbols instead of words and numerals) which in the international markets help employees ring up sales. By doing this McDonalds was able to maintain their strategy of all drive thru orders filled in three minutes or less. McDonalds also study the local culture of a country prior to entering it. By doing so they have changed some of their menu options to fit the local market. In China, the interior walls are covered with posters and...
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...Black Market A market that operates outside of the legal system where either legal or illegal goods are sold at illegal prices or terms is known as the black market. These types of transactions normally occur when people are trying to avoid taxes or government price controls. The black market is also known for the buying and selling of illegal drugs, firearms, and stolen goods. When the demand is strong enough and gains from the trade can be had markets will develop and exchanges will occur in spite of the restrictions (Gwartney, Stroup, Sobel, & Macpherson, 2013). The Prices in the black market are determined by supply and demand just like in other markets. In some cases prices in the black market can be more costly to the consumer than the legal market. This is because the supplier takes on much more of a risk by selling these black market items and could be arrested, pay expensive fines, and even going to prison. On the other hand there are also times when it may be cheaper to purchase items in the black market; this is because the supplier does not have to pay things like taxes or the production costs on items. In August of this year black market distribution of Olympic tickets was shut down. Over 20,000 people would be denied seats into the venue because they had purchased tickets on the black market. The London Olympic tickets were only valid when purchased through authorized outlets. In this situation an unauthorized ticket trader named Euroteam was selling the...
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...Executive summary: A new industry of ready-made garment is to be set up in Bangladesh. The reasons on which this decision is based includes, flexible business and investment policy of Bangladesh government, economic security, cheap labour, tax exemption etc. Garment industry requires less investment capital. Raw material would be purchased from the local markets, this will save time and money. Different brands will be launched according to the financial conditions of the consumer, this will capture maximum market. New export markets will be sort out and this will help in generating foreign exchange. Internet, catalogue, television, bill boards, radio, will be used as source of advertisements. Retail and wholesale markets will be the main target.Executive summary: A new industry of ready-made garment is to be set up in Bangladesh. The reasons on which this decision is based includes, flexible business and investment policy of Bangladesh government, economic security, cheap labour, tax exemption etc. Garment industry requires less investment capital. Raw material would be purchased from the local markets, this will save time and money. Different brands will be launched according to the financial conditions of the consumer, this will capture maximum market. New export markets will be sort out and this will help in generating foreign exchange. Internet, catalogue, television, bill boards, radio, will be used as source of advertisements. Retail...
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...BACKGROUND INFORMATION FOR THE VANATIN CASE Assume that it is January 2013 and that you are a member of the Booth Pharmaceutical Corporation Board of Directors. You have been called to a Special Board Meeting to discuss what should be done with the product known as “Vanatin.” Vanatin is a “Fixed-ratio” antibiotic sold by prescription. “Fixed-ratio” means that it contains a combination of drugs. It has been on the market for more than 13 years and has been highly successful. It now accounts for about 18 billion dollars per year, which is 12 percent of Booth Company’s gross income in the United States (and a greater percentage of net profits). Profits from foreign markets, where Booth is marketed under a different name, are roughly comparable to that in its home country. Over the past 20 years, there have been numerous medical scientists (e.g.. the National Council on Drugs) who have objected to the sale of most fixed-ratio drugs. The argument has been that (1) there is no evidence that these fixed-ratio drugs have improved benefits over single-drugs, and (2) the possibility of detrimental side effect, including death, has at least doubled. For example, these scientists have estimated that Vanatin is causing about 30 to 40 unnecessary deaths per year (i.e., deaths that could be prevented if the patients had used a substitute made by a competitor of Booth). Despite the recommendations to remove fixed-ratio drugs from the market, doctors have continued to use them....
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...Hello Class, My name is Brandon Wilhite and I am a United States soldier, this isn't my first online course but it is one of the most important one. I have taken online courses before with AIU and because of the length of the course and how great the staff and faculty are I plan to complete my degree here, with that said my future educational and career goals are to complete my MBA and get my JD(Judicial Doctorate) and become a corporate attorney and run my own business and a business degree is the first step in my quest to becoming an attorney and future success. While going through the virtual campus I found the interactive reading and activities to be the most useful to me. This was because it helped me understand the content and practice what I learned. There are three basic business environments(legal, social, and economic) that affect the success of a business. The legal environment of a business is the law as it affects a business and is governed by state, country, and international laws. This includes laws on what can and can't be produced or sold, consumer and employee protection laws, tax and other financial laws, as well as many rules and regulations with regards to business ethics, code of conduct, arbitration, and when and how to seek legal advice. The social environment of a business is the factors that affect a business socially. Every business works in a society and different factors such as family, educational institutions, and religion affect...
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...A New House-Readiness Trade-offs is a good place to start in making a decision such as buying a house, but to make a good decision with trade-offs, I really need to research and make sure I know what my options are and what is available to me. I also need to make sure what I am trading for, is not costing me more than I am willing to pay. It is a give and take situation. If you want a particular item, such as a house, you have to make sure you will not regret what you are giving up to purchase this house. You have to look ahead, and make sure you are prepared to face the consequences of your actions whatever that may look like. Trade and how society interacts with one another is another factor when making a purchase such as a house. When the economy is in competition with one another, it could work to my advantage. One realtor in competition with another realtor would give me a variety of choices to choose from. In that case scenario, I could make sure I was getting the most for the money I am willing to spend. The government could be a major influence in the fact that if the quantity of money they release is high, it will cause prices to go up and it may push the price of things so high, I cannot afford to buy a house. If everything that is essential to live and maintain goes up in price, it could push the date of purchasing a house into the future for me. Employment, productivity, and inflation are three other factors that would make me stop and consider whether it...
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...Class: MGT-001 Professor: Mark J. ROSELLI Name: Lê Quốc Khánh POINTS FOR DISCUSSION 1. I think Jorgensen who the board of directors has a social responsibility to the workers and the local community. Because he cares about people, he wants to rebuild his roads, his bridges and the infrastructure of his country. He thinks if he does it, the demand will skyrocket. However, I side with Garfinkle, maintaining that the directors’ only responsibility is to the stockholders and thus maximize profits. The most important of business is making money for yourself and your stockholders. Therefore, my company is making money and has much work but I will increase the salary. When company has a lot of money, I will spend money to care about people. 2. a- According to Garfrinkle, the free market where anyone is allowed to buy up and has a profit with a company. In my opinion, I disagree with Garfinkle’s concept of a free market that anyone should have the right to buy out any company he wishes. Markets are confused about a free market. Businessman will sell off part of company for quick profit and close down factories, thus throw people into unemployment. Other workers will dissatisfy with our boss, the company can’t make the money so the company will bankrupt. b- The government should pass a market law clearly to restrict and prevent from free market of Garfinkle. The market law doesn’t allow the company to buy up and buy any company. Each businessman only allows buying...
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...bring the world together by exporting products, ideas, and influence. Americans wanted to teach other nations the American values of democracy, free enterprise capitalism, and Protestant Christianity. The social factors of American imperialism were to extend western ideas, religion, and government. The main idea was to find markets all around the world. The Americans wanted to expand their values, increase foreign trade, enhance American prestige, and guarantee future security. They were willing to do this by expanding boundaries, purchasing colonies, or persuading encouragement to take control and better the American social lifestyles and security. The economic growth of industrial networks had linked America with foreign markets like never before. Employment and farmers were depending on foreign countries to keep the economy going. Farmers and industries relied on the world to purchase products and goods and at the same time kept the economy going by providing jobs and keeping farmers from going broke and selling their farms. As America relied on foreign trade for wealth and power, they needed a strategic way to protect the foreign markets, and the seas where ships transported goods from shore to shore. Alfred Thayer Mahan, a navy captain and later admiral, created the idea of forming a navy. The idea of replacing wood vessels with steel persuaded America to have a modern and powerful Navy and the means to become an imperial power within the world. Reference: Davidson...
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...Direct exporting means you export directly to a customer interested in buying your product. You are responsible for handling the market research, foreign distribution, logistics of shipment and for collecting payment. The advantages of this method are: Your potential profits are greater because you are eliminating intermediaries. You have a greater degree of control over all aspects of the transaction. You know who your customers are. Your customers know who you are. They feel more secure in doing business directly with you. Your business trips are much more efficient and effective because you can meet directly with the customer responsible for selling your product. You know whom to contact if something isn't working. Your customers provide faster and more direct feedback on your product and its performance in the marketplace. You get slightly better protection for your trademarks, patents and copyrights. You present yourself as fully committed and engaged in the export process. You develop a better understanding of the marketplace. As your business develops in the foreign market, you have greater flexibility to improve or redirect your marketing efforts. The disadvantages: It takes more time, energy and money than you may be able to afford. It requires more "people power" to cultivate a customer base. Servicing the business will demand more responsibility from every level of your organization. You are held accountable for whatever happens. There is no buffer...
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...Case Study #6: Avon in Global Market in 2009: Managing and Developing a Global Workforce 1. Referring to this chapter and chapter 9, evaluate Avon’s Strategic International Human Resources practice in global market regarding development of a global management cadre, HCNs, and building company associates and independent representatives in host countries. I believe Avon is very successful in its international human resources management in global market. First of all, Avon’s first female CEO took charge of company and implemented efficient policies to make the company get out of debt problem and sluggish sales problem. Secondly, Avon also focus on international market. They hire millions local door-to-door representatives who know well about local culture. Meanwhile, to improve the quality of their workforce, Avon runs leadership program and on-the-job training seminar on a regular basis. Thirdly, Avon set up Avon foundation to help charitable program and women issues around the world. Fourthly, Avon also builds up its good reputation by workforce diversity and minority recruitment. 2. Describe how Avon’s business model has changed in light of demographic and social changes in the United States and abroad. What role has IHRM played in the company’s global expansion? In global market, Avon hires and trains the new local workforce in its door-to-door selling model (Avon’s salespeople and company representatives become more critical in their door-to-door selling in diverse markets)...
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...Macroenvironment Universe of sociological elements that affect a company's ability to serve its customers or sell its goods and services. There are six major macroenvironment forces: cultural, demographic, economic, natural, political, and technological. The cultural environment includes institutions and other forces that affect the basic values, behaviors, and preferences of the society-all of which have an effect on consumer marketing decisions. The demographic environment includes the study of human populations in terms of size, density, location, age, sex, race, occupation, and other statistical information. The economic environment consists of all factors-such as salary levels, credit trends, and pricing patterns- that affect consumer spending habits and purchasing power. The natural environment involves all the natural resources, such as raw materials or energy sources, needed by or affected by marketers and marketing activities. The political environment includes all laws, government agencies, and lobbying groups that influence or restrict individuals or organizations in the society. The technological environment consists of those forces that affect the technology and which can create new products, new markets, and new marketing opportunities. Microenvironment Elements close to a company that impact the company's ability to serve its customers. There are six components of the microenvironment: the company's internal environment, composed of the management personnel...
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...Consumerism and Purchasing Name: Samuel, Dequanne Due Date: 7th May 2013 Teacher’s Name: Hughes Table of Contents Term definitions: pg 1 Advantages and Disadvantages of Large and Small Supermarkets: pg 2 Food Labelling: pg 3-4 Food Purchasing: pg 5 Conclusion: pg 6 Bibliography: pg 7 Term Definitions Unit pricing-The pricing of goods on the basis of cost per unit of measure Net Weight-Actual, computed, or estimated weight of a good without its container and/or packaging. Impulsive Buying- The purchase habits of consumers who buy goods or services at the beginning point of contact. Universal Produce Code-A barcode symbology used for tracking trade item in stores Standard of Identity-Mandatory, federally set requirements that determine what a food product must contain to be marketed under a certain name in interstate commerce. Expiry Date-A date in which items are no longer good for use Comparative Shopping-The practice of comparing prices in advance of actually shopping in order to achieve the best deals and pricing on merchandise and services. Bulk Buying- The act of buying large quantities of goods at low prices 1| Page Advantages and Disadvantages of Large and Small Supermarkets Advantages * Small markets have friendly staff * In small markets you can get items now and pay later * Large markets have more items than small markets * The goods in large markets are a lot cheaper Disadvantages * Small markets do not generally...
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