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