Global

Opportunities

Back to Table of Contents

Chapter 4 Global Opportunities

Global Opportunities

4.1 Global Entrepreneurship

4.2 Ways to Enter the Global Market

2
 Global Opportunities

4.1

• Describe the role of small business and

entrepreneurship in today’s multicultural, global
economy.
• Explain why the global market is important.
• Discuss how to recognize and examine current
trends that provide both domestic and global
opportunities for entrepreneurs.

Section 4.1 Global Entrepreneurship 3

 Global Opportunities

4.1

The countries of the world are linked in a global

economy made possible by free trade
agreements and advances in communications
technology.

International markets present opportunities in all

regions of the world.

Section 4.1 Global Entrepreneurship 4

 Global Opportunities

4.1

global economy trade barrier

exporting tariff
importing gross domestic product (GDP)

Section 4.1 Global Entrepreneurship 5

 Global Opportunities

The Global Economy

Entrepreneurship plays an global economy the

important role in today’s interconnected
economies of the nations
multicultural global of the world
society.

Technological advances
and changes in trade
barriers have created a
global economy.
Section 4.1 Global Entrepreneurship 6
 Global Opportunities

The Global Economy

International markets importing the buying or

provide opportunities for bringing in goods from
other countries to sell
entrepreneurs to engage
in importing and exporting the selling
exporting goods and and shipping of goods to
other countries
services.

Section 4.1 Global Entrepreneurship 7

 Global Opportunities

Trade Barriers Have Fallen

The World Trade Organization is a global coalition

of governments that makes the rules that govern
international trade.

Section 4.1 Global Entrepreneurship 8

 Global Opportunities

Trade Barriers Have Fallen

The World Trade trade barriers a

Organization works to restriction on goods
entering or leaving a
eliminate or lessen trade country
barriers and tariffs.
tariffs a type of trade
barrier imposed by a
government as a tax on
imported or exported
goods

Section 4.1 Global Entrepreneurship 9

 Global Opportunities

Global Opportunities

A nation’s economy is gross domestic product

measured by its gross (GDP) the total value of
all goods produced in a
domestic product country during the year
(GDP).

Section 4.1 Global Entrepreneurship 10

 Global Opportunities
Section 4.1 Global Entrepreneurship

4.1

1. Describe the role of small business and

entrepreneurship in today’s multicultural,
global economy.

Small businesses and entrepreneurs are going

global to take advantage of the opportunities to
do business with other countries.

Section 4.1 Global Entrepreneurship 11

 Global Opportunities
Section 4.1 Global Entrepreneurship

4.1

2. Explain why the global market is important.

The global market holds many opportunities for

growing businesses because it is many times the
size of the U.S. market.

Section 4.1 Global Entrepreneurship 12

 Global Opportunities
Section 4.1 Global Entrepreneurship

4.1

3. Discuss how the global market provides

domestic and global opportunities for
entrepreneurs.

Opportunities lie in every part of the world where

customers need and/or want products made in the United
States and where products not found in the United States
can be imported. Huge opportunities are available in Asia,
Latin America, and Europe and in developing nations.

Section 4.1 Global Entrepreneurship 13

 Global Opportunities

4.2

• Describe the benefits and risks of international

trade.
• Explain how to find the best international
markets.
• Compare and contrast importing and exporting.

Section 4.2 Ways to Enter the Global Market 14

 Global Opportunities

4.2

To conduct international business successfully, you

must understand foreign customs and cultures.

Whether you choose to import or export products,

the international market presents many profitable
business opportunities.

Section 4.2 Ways to Enter the Global Market 15

 Global Opportunities

4.2

interpreter disposable income

Standard Industrial Trade trade intermediary
Classification (SITC) codes foreign joint venture
International Business export management company
Exchange (IBEX) freight forwarder
trade missions
“best prospect” list

Section 4.2 Ways to Enter the Global Market 16

 Global Opportunities

Understanding
International Business
Understanding how other countries conduct
business is important to your success as an
entrepreneur.

Section 4.2 Ways to Enter the Global Market 17

 Tips for Showing Respect
Dress conservatively and in dark colors.

Do not correct other people’s language.

Be prepared to remove your shoes in some situations.

Do not comment negatively on food.

Do your homework before a meeting.

Build a relationship before you do business.

Bring your own interpreter.

Section 4.2 Ways to Enter the Global Market 18

 Global Opportunities

Tips for Showing Respect

It is important to show interpreter a person

respect and who translates one
understanding for the language into or from
another
cultures of the people with
whom you do business.

An interpreter will help

ensure that your
communications to others
are accurate.
Section 4.2 Ways to Enter the Global Market 19
 Global Opportunities

Strategies for Entering

International Markets
One good resource in Standard Industrial
finding an international Trade Classification
(SITC) codes a system
market for your product or that details the kinds of
service is using Standard products that are traded
Industrial Trade in specific countries and
how well certain products
Classification (SITC) sell in different markets
codes.

Section 4.2 Ways to Enter the Global Market 20

 Global Opportunities

Other Sources of Help

There are many sources to International Business

help entrepreneurs locate Exchange (IBEX) the
the best market for their electronic commerce
system that allows
products or services. businesses to find trading
partners and sell products
Entrepreneurs who want to and services anywhere in
sell online should contact the world
the U.S. Chamber of
Commerce regarding its
International Business
Exchange (IBEX).
Section 4.2 Ways to Enter the Global Market 21
 Global Opportunities

Other Sources of Help

A small business with “best prospect” list a list

compiled by the government
products on the of products that other
government’s “best countries want to purchase
prospect” list will gain
the chance to go on a trade mission an
opportunity offered by the
trade mission. U.S. government and private
agencies to small
businesses to travel to other
countries to meet with
foreign agents, distributors,
or potential business
partners
Section 4.2 Ways to Enter the Global Market 22
 Global Opportunities

Deciding on a Product
to Export
To be successful as an disposable income
exporter of consumer money people have to
spend after paying for
products, it helps to necessary expenses
market to countries to sell
where people have
enough disposable
income.

Section 4.2 Ways to Enter the Global Market 23

 Where to Find Import Opportunities

Attend trade shows.

Read trade publications and catalogs.

Research the market.

Talk to potential customers.

Section 4.2 Ways to Enter the Global Market 24

 Where to Find Export Opportunities
Establish an e-commerce web site

Establish a foreign joint venture

Use an export management company

Hire a freight forwarder

License foreign businesses to sell your products

Use a trade intermediary

Section 4.2 Ways to Enter the Global Market 25

 Global Opportunities

Deciding on a Product
to Export
An entrepreneur can expand trade intermediary an
a business into a foreign agency that serves as a
distributor in a foreign
market by using a trade country
intermediary.

Section 4.2 Ways to Enter the Global Market 26

 Global Opportunities

Where to Find Export

Opportunities
Some entrepreneurs find it foreign joint venture
helpful to establish a an alliance between an
American small business
foreign joint venture in and a company in another
order to gain entry into a nation
new global market.

Section 4.2 Ways to Enter the Global Market 27

 Global Opportunities

Where to Find Export

Opportunities
An entrepreneur wishing to export management an
export goods or services organization that handles
all the tasks related to
to another country may exporting for a
employ the services of an manufacturer
export management freight forwarder a
company and/or a freight company that arranges
forwarder. shipments and prepares
necessary exporting
paperwork

Section 4.2 Ways to Enter the Global Market 28

 Global Opportunities

Things to Consider Before

Going Global
When entrepreneurs think about going global they
should make sure they have:

• solutions
• a new idea
• a market for the product or service
• the ability to handle risk and frustration
• good contacts in other countries

Section 4.2 Ways to Enter the Global Market 29

 Global Opportunities
Section 4.2 Ways to Enter the Global Market

4.2

1. Describe the benefits and risks of

international trade.

The benefits of international trade include being able to

purchase goods or services from and sell them to other
countries and to manufacture in other countries. Countries
with unstable governments provide a riskier due to form of
opportunity; there are many barriers and little government
support for business owners.

Section 4.2 Ways to Enter the Global Market 30

 Global Opportunities
Section 4.2 Ways to Enter the Global Market

4.2

2. Explain how to find the best international

markets.

The U.S. Census Bureau’s Guide to Foreign Trade

Statistics helps in locating sources for various trade
statistics. Standard Industrial Trade Classification
(SITC) codes tell what kinds of products are traded in
specific countries.

Section 4.2 Ways to Enter the Global Market 31

 Global Opportunities
Section 4.2 Ways to Enter the Global Market

4.2

3. Compare and contrast importing and

exporting.

Importing is buying products from other

countries to resell in your own country.
Exporting is selling and shipping goods to
other countries.

Section 4.2 Ways to Enter the Global Market 32

 Global Opportunities

International
E-Commerce
Overseas markets represent an enormous economic
opportunity for e-commerce enterprises, but doing
business in another country can be complex.

Entrepreneurs must be concerned with language, currency,

culture, and country regulations.

Section 4.2 Ways to Enter the Global Market 33

 Global Opportunities

Tech Terms
exchange rate
the rate at which one currency is converted into another

graphic user interface

the design, content, and navigation of a Web site

import regulations
the rules that govern the types and amounts of products that can be
sold, packing that can be used, and taxation

Section 4.2 Ways to Enter the Global Market 34

 Global Opportunities

Tech Terms
real time
the actual time that something takes place

translation
the process of changing one written communication into a second
language with the same meaning

Section 4.2 Ways to Enter the Global Market 35

End of

Global
Opportunities

Back to Table of Contents