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Trade in the Modern World
Trade in the Modern World
International Business Practices
International Business Practices
International Business Practices
International Business Practices
International Business Practices
International Business Practices
International Business Practices
International Business Practices
International Business Practices
International Business Practices
LICENSING AGREEMENT - example
LICENSING AGREEMENT - example
Exclusive Distribution Rights - example
Exclusive Distribution Rights - example
Exclusive Distribution Rights - example
Exclusive Distribution Rights - example
Franchise - example
Franchise - example
Franchise - example
Franchise - example
Franchise - example
Franchise - example
Franchise - example
Franchise - example
Franchise - example
Franchise - example
Franchise - example
Franchise - example
4. Joint venture
4. Joint venture
Joint venture - examples
Joint venture - examples
Joint venture - examples
Joint venture - examples
Joint venture - examples
Joint venture - examples
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Trade in the Modern World

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1Trade in the Modern World. CHAPTER 2: 14Office productivity apps and other
- - - - - - - - - - - - - - - - - - - - - services pre-installed on Asus' portfolio
- - - - - - - - - - - - - -. . of mobile devices, such as its ZenFone and
Fundamentals of International Business Transformer Pad, as well as new product
Copyright © 2010 Thompson Educational solutions for both companies.
Publishing, Inc. Chapter 2: TRADE IN THE "Microsoft software, including
MODERN WORLD. Office, on the entire line of Asus Android
2Unit 1 Overview – BUSINESS smartphones and tablets, is a coup for
FUNDAMENTALS. Chapter 2 – International both organizations in the struggle for an
Business Practices. Chapter 2 – Access to advantage in the uber-competitive mobile
Markets. Chapter 2 – Trade Barriers. market," said Douglas Grosfield,
Chapter 2 – Currency Fluctuations. president and CEO of Xylotek Solutions, a
Culminating Activity for Unit 1 – Unit Cambridge, Ontario-based Microsoft
Test Tentative Date Oct 22nd, 2015. partner, in an email to CRN.
3Key Terms. trade embargo trade 152. Exclusive Distribution Rights.
sanctions exchange rate floating rate Exclusive distribution rights …. A form of
currency revaluation currency devaluation licensing agreement that grants
terms of trade hard currencies soft _____________the right to be the________
currencies currency speculating. importing _______________of a product in a specific
global sourcing exporting value added geographic area or country. Used as an
licensing agreement exclusive distribution _________ _________ into a foreign market.
rights franchise joint venture foreign 16Exclusive Distribution Rights -
subsidiary protectionism trade quotas. example. MTG Acquires Exclusive
Fundamentals of International Business Distribution Rights to NHL Ice Hockey
Copyright © 2010 Thompson Educational “This distribution partnership gives NHL
Publishing, Inc. Chapter 2: TRADE IN THE fans in the Nordic countries unprecedented
MODERN WORLD. access to our games and our players. It’s
4Chapter Objectives. By the time you a win for NHL hockey and a win for our
finish this chapter, you should be able fans.” Modern Times Group the
to: Identify the types of international international entertainment broadcasting
businesses Describe the impact technology group, today announced that it has
has had on the international business acquired the exclusive distribution rights
environment Identify the factors that to the National Hockey League (NHL) in
affect foreign exchange rates Explain how Sweden, Norway, Denmark and Finland from
changes in the value of the Canadian Medge Consulting. The rights include, but
dollar can affect business opportunities are not limited to, exclusive live
Identify the types of products that trade coverage on free-TV, pay-TV and the
freely into and out of Canada and those internet, until the end of the 2015-16
that are restricted in their movement season. MTG has held rights to NHL games
Identify and locate on a map Canada’s since October 2009.
major trading partners. Fundamentals of 173. Franchise. Franchise An agreement
International Business Copyright © 2010 granted to an individual or group by a
Thompson Educational Publishing, Inc. company to ______________________________
Chapter 2: TRADE IN THE MODERN WORLD. ______________________________. For a
5International Business Practices. ________, the franchisor provides support
Reasons that Canada trades: Company growth to the franchisee in the areas of
Entry into new markets Expanded customer financing, operations, human resources,
base Increased profits Access to marketing, advertising, quality control,
inexpensive supplies Lower labor costs etc. Must follow all the franchisor’s
Access to financing. Fundamentals of (parent company’s) rules! Fundamentals of
International Business Copyright © 2010 International Business Copyright © 2010
Thompson Educational Publishing, Inc. Thompson Educational Publishing, Inc.
Chapter 2: TRADE IN THE MODERN WORLD. © Chapter 2: TRADE IN THE MODERN WORLD.
iStockphoto.com. 18Franchise - example. FRANCHISOR.
6International Business Practices. FRANCHISEE.
Foreign portfolio investment Investment in 19Franchise. BENEFITS: 1.
businesses located outside of Canada ____________________ 2. EXPERT KNOWLEDGE
through ______________________________ AND RESEARCH 3. ___________________
Allows Canadians to spread out their DRAWBACKS: 1. _______________ 2. STRICT
investments, (diversify) which is RULES 3. _________________.
_________________ than investing in just 204. Joint venture. MOST foreign
one area e.g. money markets, capital investment is a joint venture! Joint
investments Also provides ________________ venture A common type of international
and ________________________. Fundamentals business, in which a
of International Business Copyright © 2010 ______________________________ by two
Thompson Educational Publishing, Inc. businesses, one of which is usually
Chapter 2: TRADE IN THE MODERN WORLD. located in the country where the new
7International Business Practices. company is established. Why? To gain
_____________________ To bring products or access to makets, products, customers.
services into a country, for use by Fundamentals of International Business
another business (B2B) or for resale. The Copyright © 2010 Thompson Educational
majority of the goods that Canada imports Publishing, Inc. Chapter 2: TRADE IN THE
come from the United States. Table 2.1 MODERN WORLD.
Page 37 _______________________ The 21Joint venture - examples. Campbell
process of a company buying equipment, Swire (Shanghai, China) Campbell will have
capital goods, raw materials, or 60% ownership. Sharp Display Products
_______________ from around the world. Corporation (SDP). BYD-Daimler Electric
Fundamentals of International Business Car BYD Co. and Daimler Mercedes-Benz
Copyright © 2010 Thompson Educational Chinese battery and auto producer.
Publishing, Inc. Chapter 2: TRADE IN THE 22Joint venture. MANY Joint Ventures
MODERN WORLD. © iStockphoto.com. FAIL! Why? Negative impact of external
8International Business Practices. influences (e.g. a financial crisis,
____________________ To send goods or political instability)
services to another country, for use by a ______________________________ Common and
business or for resale. The majority of separate needs and wants must be
goods that Canada exports go to the United considered _________ company’s goals and
States. (see Table 2.2 P. 38). roles needs to be agreed upon _________
Fundamentals of International Business company’s cultural differences and
Copyright © 2010 Thompson Educational business methodologies.
Publishing, Inc. Chapter 2: TRADE IN THE 235. Foreign subsidiaries. Foreign
MODERN WORLD. subsidiaries Often referred to as a wholly
9International Business Practices. owned subsidiary, a
_____________________ The amount of worth ______________________that is run as an
that is added to a product at each stage ______________________ in a country
of processing. It is the difference outside of the one in which the parent
between the cost of the raw materials and company is located. The parent company
the finished goods. Fundamentals of often sets financial targets, and allows
International Business Copyright © 2010 the ___________________________
Thompson Educational Publishing, Inc. ___________________as long as those
Chapter 2: TRADE IN THE MODERN WORLD. targets are being met.
10International Business Practices. ______________________ decision-making
Chapter 2: TRADE IN THE MODERN WORLD. process. Fundamentals of International
Fundamentals of International Business Business Copyright © 2010 Thompson
Copyright © 2010 Thompson Educational Educational Publishing, Inc. Chapter 2:
Publishing, Inc. TRADE IN THE MODERN WORLD.
11Unit 1 Overview – BUSINESS 24A SUBSIDIARY of TOYOTA. Toyota
FUNDAMENTALS. Chapter 2 – International subsidiary's new Miyagi plant rolls out
Business Practices. Chapter 2 – Access to first export batch (January 11, 2011).
Markets. Chapter 2 – Trade Barriers. Toyota subsidiary's new Miyagi plant rolls
Chapter 2 – Currency Fluctuations. out first export batch. SENDAI (Kyodo) A
Culminating Activity for Unit 2 – Unit new plant operated by a Toyota Motor Corp.
Test Tentative Date Oct 22, 2015. subsidiary in Miyagi Prefecture began
12HOW would you gain access to rolling out subcompacts Tuesday for
international markets? International export. The first 30 Yaris Sedan
Business Practices. Fundamentals of subcompacts — the first batch manufactured
International Business Copyright © 2010 by Central Motor Co. at its new plant in
Thompson Educational Publishing, Inc. Ohira — are being shipped from Sendai to
Chapter 2: TRADE IN THE MODERN WORLD. Nagoya before being exported to the United
131. Licensing Agreement. Licensing States and Europe, the company said. ……..
agreement …… An agreement the automaker aims to reinforce its
that________________________ capacity so it can manufacture and ship
_______________a product, service, brand 250 vehicles per day by the end of this
name, or patent month after its operation gets back in
_____________________________. Usually stride………The Tohoku region, characterized
used for a manufacturing process. Usually by the Miyagi plant, is the third
for a specific period of time. e.g. Parent production hub of the country's top
company sends management expertise to automaker. Toyota's other hubs include the
foreign country to set up operations. Tokai region in central Honshu and
14LICENSING AGREEMENT - example. northern Kyushu.
Partners Applaud Microsoft And Asus Patent 25CLASWORK. Read P. 41 – Toxic E-Waste
Licensing Agreement Expansion by Lindsey Pouring into the Third World Answer 4
O'Donnell on October 2, 2015, 6:08 pm EDT questions. Research StEP (E-waste
Partners cheered an extended patent initiatives). www.step-initiatives.org
licensing agreement between Microsoft and Briefly describe the objectives and
phone manufacturer Asus, saying it could project initiatives of the 5 taskforces
pave the way for tighter integration identified on their website (e.g. ReUse)
between the two companies on Android 4. Answer Q’s p. 58 KNOWLEDGE #2 – 6
smartphones and tablets. Partners say that THINKING #13.
means they could start seeing Microsoft
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