chapter 4 - local and global opportunities

how much of your money stays in the local community if you shop at a local business vs a national business

1 dollar in local business - 73 cents 1 dollar in national business - 43 cents

what is the ripple effect of small business on a local ecoonomy

small business - hires local employees - buys locally - pays taxes - supports community - company supports small business

what are some of the services/resources that the SBA offers to small business owners and entrepreneurs

the small business administration offers: - learning and export center -business mentor -women's center -veteran's center

discuss how small business play an important role in the local economy

they create american-made products and often use products from local suppliers. it keeps more production and manufacturing in the us

define licensing

when a business sells the right to manufacture its products or use its trademark

define joint venture

working with a business already established in another country

is english considered a universal business language

yes

what is the purpose of customs and border protection

enforces laws related to importing and exporting products

what strategies are available for taking a business global

- recreating an existing US business -buy a franchise -exporting -importing-licensing-international joint ventures

list the challenges faced by global entrepreneurs

-cultural differences -communication -exchange rates -legal documents -logistics -labor laws

list some of the pros and cons of joint ventures

pros: - companies share risks and costs - one company has access to the other company's resources cons: - clash of cultures - it can be hard to exit the partnership as there is a contract involved

what will cause exchange rates to fluctuate

changes in the market of foreign countries

are working conditions the same in all countries

no because labor laws are different in different countries. labor laws are those that prevent certain people from working too much.

what is NAFTA and what was its purpose

north america free trade agreement; remove all tariffs between the USA, canada and mexico

how does the SBA define small business

one that is independently owned/operated, it is organized for profit and not dominant in its field

what is the purpose of the environmental protection agency

oversees laws for importing and exporting products

what impact do tariffs have on the price of goods

tariffs increase the price of goods

define tariff

tax on imported goods

what impact has the internet had on global opportunities

technology has made it easier for digital communication to occur

discuss some of the resources that the BBB has to offer and how you can access them

better business bureau provides services like: - online classes/courses -mentoring -digital workshop to businesses

define trade barrier

government regulations that restrict trade with other countries

discuss how tariffs are used as trade barriers

a common trade barrier is a tariff, which is a tax on imported goods

define enterprise zone

geographical area in which businesses receive favorable tax credits, financing oro other incentives.

what is the purpose of the small business administration

gives information and guides small businesses

what is the purpose of the united states embassies

helps US business in foreign countries follow local laws and customs

what is the purpose of the department of commerce

helps businesses know other country's laws, regulations and tariffs

define administrative law

law that governs the activities of administrative agencies of government