Identify the implications of the globalization of markets and production, and explain why globalization has accelerated so rapidly.

Devin Kay always “buys American”—but what does that mean in the new global marketplace?

Discuss the costs and benefits of international trade.

As foreign companies begin to compete in U.S. markets, there is more competition and more pressure on U.S. businesses. What are the benefits of international trade? What are the costs?

Describe the different types of trade barriers.

Trying to compete in the world marketplace means using every resource available. So when the members of the family who operate the Miller farm found that genetically modified organisms (GMOs) helped boost the farm’s crop output, they were thrilled. Now, however, they have discovered they can’t sell their crops in 28 countries because they used GMOs. How do free-trade agreements affect businesses and members of a community?

Explain the three basic strategies of international business, and describe how international firms successfully enter foreign markets.

When you’re conducting business internationally, many factors come into play. What are the strategies of international business? How can you enter a foreign market? Which entry mode is best? Hachimo Isu needs some answers before he expands his business.

Define exchange rates, explain how they affect international business, and discuss the economic factors that play a role in conducting global business.

Economic factors affect what products get imported and exported. Exchange rates both encourage and deter countries from trading with one another and therefore have a big impact on imports and exports. Business owners like Rachel Gao, who sells jewelry, want to import goods from countries with favorable exchange rates. How do exchange rates affect the bottom line of Rachel’s business, and how do they affect a nation’s economy overall?

List sociocultural, political, legal, and ethical challenges to conducting business in a global marketplace.

How would you feel if a potential client from Venezuela wouldn’t sign a contract with you because you didn’t pat him on the shoulder when you first met? Joe Stein lost one account that way. He now thinks he may lose another by accepting and opening a gift from a client in India. What challenges does Joe face there? Is there a problem accepting and opening a gift when it’s received? Knowing the answers to such questions is vital to running a successful global business.