2.2 PowerPoint

Category: Entertainment

Presentation Description

No description available.


Presentation Transcript

Chapter 2:

Chapter 2 Section 2.2 Thinking Globally, Acting Locally

The Global Economy:

The Global Economy The global economy is the flow of goods and services around the whole world . No nation’s economic flow is confined within its own borders. Even though scarcity effects what is produced and how much, globally nations are forced to specialize in goods and services.

Exporting & Importing:

Exporting & Importing Exporting Is the business activity in which goods and services are sent from a county and sold to foreign consumers. Importing The business activity in which goods and services are brought into a country from foreign suppliers.

Importing & Exporting:

Importing & Exporting Goods are physical objects that can be shipped by plane, train, or ship. Services are different, they must physically move people across borders to perform their specialty.

Technology & The Global Economy:

Technology & The Global Economy Advancements in telecommunications – phone, fax, email, and Internet have made the global trading market much easier than in the past.

Entrepreneurs & International Trade:

Entrepreneurs & International Trade Entrepreneurs can benefit from international trade both by importing and exporting goods. Risks in International Trade: Must learn about economic and monetary systems. Learn about government regulations Learn about cultural factors involved.

Trade Barriers:

Trade Barriers Governments are more protective of their natural resources within their borders so they put restrictions on trade: Nations want to help their own businesses before foreign. Governments want to protect their consumers from unsafe or poor quality goods.

Trade Barriers:

Trade Barriers Trade Barrier Governmental restriction placed on international trade. Tariff A fee, similar to a tax, that importers must pay on the goods they import. Quota Is a limit on the quantity of a product that can be imported into a country.

Foreign Exchange Rates:

Foreign Exchange Rates Many types of money are in use around the world, but not all amounts of money are equal in each country. United States – Dollar Japan – Yen China – Yuan Canada – Canadian Dollar UK – Pound Mexico – Peso

Foreign Exchange Rates:

Foreign Exchange Rates International sellers and buyers must be able to calculate a foreign exchange rate to be able to sell their goods properly.

Fair Trade:

Fair Trade Fair Trade A policy of ensuring that small producers in developing nations earn sufficient profit on their exported goods. Respecting Other Cultures Entrepreneurs who wish to engage in international trade need to respect: beliefs, language, beliefs, attitudes, customs, manners and habits.

Local Economy:

Local Economy Local Economy: Covers a limited area, such as a community or town. Entrepreneurs Benefit Local Economies By: Purchasing materials and supplies from local merchants. Opening an account at a local bank.

Local Economy:

Local Economy Entrepreneurs Benefit Local Economies By: Joining a local business association. Paying local taxes that benefit schools and public services. Investing in local businesses. Donating money or time to local charities. Hiring local employees. Supplying goods and services to local consumers.

Importance of Sustainability:

Importance of Sustainability It is important that economic development doesn’t harm the environment but ensures that human and natural resources are there for future generations. This is called sustainable economic development, or sustainability. Goal to maintain and improve human life for generations.

authorStream Live Help