New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

MIE 201, Chapter 3 In Class Notes

by: Jenna Loehrer

MIE 201, Chapter 3 In Class Notes MIE 201

Marketplace > North Carolina State University > Management > MIE 201 > MIE 201 Chapter 3 In Class Notes
Jenna Loehrer
GPA 3.9

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

These notes are on Exam 1, and cover chapter 3.
Intro to Management
M.K. Ward
Class Notes
25 ?




Popular in Intro to Management

Popular in Management

This 4 page Class Notes was uploaded by Jenna Loehrer on Wednesday September 21, 2016. The Class Notes belongs to MIE 201 at North Carolina State University taught by M.K. Ward in Fall 2016. Since its upload, it has received 4 views. For similar materials see Intro to Management in Management at North Carolina State University.


Reviews for MIE 201, Chapter 3 In Class Notes


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 09/21/16
    Chapter 3 In­Class Notes (8.29 ­ 8.31)  Global Marketplace   Fundamentals of International Trade  ● Economic globalization:​ increasing integration and interdependence of national  economies around the world  ○ Macroeconomics view  ● Most competitive countries:   1) Switzerland  2) Singapore  3) United States  4) Germany  5) Netherlands  ● Why Do Nations Trade?:  ○ Focus on relative strengths  ■ Based on idea of comparative advantages  ● Means that a country will focus on the production of a product if  they can produce a product more efficiently than another country  ● Focus on strengths and then trade with other countries  ○ Expand markets  ○ Pursue economies of scale  ■ As productions increase in quantity (scale up), it will cost less to produce  each unit  ○ Acquire goods, services, and materials  ○ Keep up with customers  ■ Can be beneficial to expand internationally, if clients have international  presences → to better serve customers  ○ Keep up with competitors  ■ If competitors have expanded internationally and are having success, may  benefit you to move into same country to create competition (and  differentiate your business model from them)  ● How International Trade is Measured  ○ Measurements of a nation’s level of international trade  1) Balance of Trade:​ total value of a country’s exports minus the total value  of its imports, over a specified period of time  a) Trade Surplus:​ exports exceed imports  b) Trade Deficit:​ imports exceed exports  2) Balance of Payments:​ sum of all payments that a country receives from  other countries minus the sum of all payments it makes to other countries,  over a specified period of time  a) Total flow of money into a country ­ total flow of money out of a  country      Chapter 3 In­Class Notes (8.29 ­ 8.31)  Global Marketplace   ● Foreign Exchange Rates and Currency Valuations:   ○ Foreign Exchange:​ conversion of one currency into an equivalent amount of  another currency  ■ Uses interest rates, competitiveness of country...  ○ Exchange Rate:​ rate at which the money of one country is traded for the money of  another  ● Strong VS Weak Currency:  ○ Currency is strong when:  ■ Its exchange rate is higher than what is considered normal  ■ Impact of a strong currency: Goods/ services are more relatively expensive  when compared to other countries  ○ Currency is weak when:   ■ Its exchange rate is lower than what is considered normal  ■ Impact of a weak currency: Goods/ services are more relatively cheaper  when compared to other countries  ■ Encourages tourism and other countries to import from this country  ● Conflicts in International Trade:   ○ Free Trade:​ international trade that is unencumbered (having no burden) by  restrictive measures  ■ Advantages: no government intervention (no taxes)  ○ Fair Trade:​ buyers voluntarily agree to pay more than the prevailing market price  in order to help producers earn a ​living wage   ■ Quality is added to a product because they know the workers were paid a  living wage  ■ Living wage:​ how much it costs to maintain a certain lifestyle  ■ Not an equal playing field because larger corporations are at an advantage  ● Government Intervention in International Trade  ○ Protectionism**:​ government policies aimed at shielding a country’s industries  from foreign competition  ■ Make it more difficult for foreign competitors to receive same amounts of  resources in their country  ○ Tariffs:​ tax levied on imports  ■ Taxes = tariffs  ○ Quotas:​ Limits placed on the quantity of imports or exports that a nation will  allow for a specific product  ○ Embargoes:​ partial or complete prohibition of commerce and trade with a country  or group of countries  ○ Sanctions: ​ politically motivated embargoes      Chapter 3 In­Class Notes (8.29 ­ 8.31)  Global Marketplace   ○ Subsidies:​ money that the government provides to certain industries to lower the  cost of that good or service  ■ The good or service will then be offered at a lower price  ○ Dumping:​ unethical/ illegal business practice of selling a large quantity (in a  foreign market) at a lower price than the fair market price  ■ Can build a customer base because of lower prices  ● International Trade Organization:   ○ World Trade Organization (WTO):​ Permanent forum for negotiating,  implementing, and monitoring international trade procedures and for mediating  trade disputes  ■ 150+ countries involved  ○ International Monetary Fund (IMF):​ Formed to monitor global financial  developments, provide technical advice and training, provide short­term loans to  countries that are unable to meet their financial obligations, and work to alleviate  poverty in developing economies  ○ World Bank:​ a United Nations agency involved in 100s of products aimed at  addressing poverty, health, education, and other concerns in the majority world  ● Trading Blocs  ○ Trading blocs:​ ​Organizations of nations that removes trade barriers among their  member countries and establish uniform barriers to trade with non­member  nations  ○ Examples:  ■ North American Free Trade Agreement (NAFTA)  ● Canada, US, Mexico  ■ European Union (EU)  ● Cultural and Legal Aspects of the Global Business Environment  ○ Culture:​ a shared system of symbols, beliefs, attitudes, values, expectations, and  norms of behavior  ○ Related Terms:   ■ Stereotyping:​ assigning a wide range of generalized attributes to an  individual on the basis of their membership in a particular group  ■ Ethnocentrism:​ tendency to judge other groups based on one group’s  standards and customs  ● Judging other cultures/ other people based on our own cultural  beliefs  ○ Successful global business leaders recognize and respect differences in  appearance, communication/language, religion, (social) values, etiquette/manners,  political perspectives, attitude towards time, use of space, decision­making habits,  ideas of status  ○   ○ Define global mindset using science:  ■ Global Mindset Inventory, developed via the Global Mindset Project  ● Measures Global Intellectual Capital, Global Physiological Capital,  Global Social Capital      Chapter 3 In­Class Notes (8.29 ­ 8.31)  Global Marketplace   ○ Legal Differences:  ■ Types of law  ● Common (tradition, customs), Civil (detailed legal codes),  Theocratic (religious belief systems)  ■ Range of legally acceptable business practices  ● Strategic Alliances and Joint Ventures:​ Long term partnership between two companies to  jointly develop or produce products in the global marketplace  ○ Joint venture → two or more companies create a separate country  ■ Legally separate from two companies that came together to create it  ● Strategic Approaches to International Markets:  ○ Multi­Domestic: freedom to run operate company and adjust to each country  ○ Global: view world as a single, integrated market  ○ Trans­National: attempts to reap benefits of national scale, but also responds to  national changes  ■ Hybrid of multidomestic and global  ● Functional Strategies for International Expansion  ○ Products  ○ Customer Support  ○ Promotion  ○ Pricing  ○ Staffing 


Buy Material

Are you sure you want to buy this material for

25 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Kyle Maynard Purdue

"When you're taking detailed notes and trying to help everyone else out in the class, it really helps you learn and understand the I made $280 on my first study guide!"

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.