Introduction to Business Chapter 3 Lecture NotesDoing Business in a Global Market:-Globalization-when all the countries in the world are integrating to access people and other resources.Dynamic Global Market:Very Important-U.S. organizations (UPS,MLB,NFL,and NBA) are expanding abroad.Can you Spare a Dime?-U.S-412 billionaires-China-115 billionaires-Russia-101 billionaires-India- 55 billionaires-Germany-52 billionaires-U.K-32 billionaires-Canada- 22 billionairesImporting and Exporting:Reasons for trading with other nations is because of resources*Importing-When a country gets the products that are made in other countries*Exporting-When a country sells its products or provides products to other countries*Free trade- An agreement signed by participating countries that have agreed to remove any kind of political and economic barriers to allow businesses to trade freely.How Free Trade benefits the world:-Life expectancy rates are up-Medical supplies and knowledge is gained-People are more educatedComparative and Absolute Advantages:-Comparative Advantages- a country should compare itself with other countries to see wither it can produce that product most efficiently, then it should export it, otherwise it should import it. -Absolute Advantage- Certain countries have absolute control of certain resources and other countries are totally dependent on them.The Importance of Small Businesses:Only 30% of the small businesses are involved in global and world tradingHow to Measure Global Trading:Balance of trade-Measures the total value of a countries exports to its imports.*The number one exporting nation in the world is China, the Second is USA.*Number one importing nation is USA and the second is China.Balance of Payments: The difference between the money that comes into the countryand the money that goes out.Money Comes In When:We export moreInvestmentsExporting ServicesTourismInternational Students Money Goes Out When:ImportsOther World Market InvestmentsTourismImporting ServicesInternational StudentsGeopolitical ObjectivesWarForeign AidWorld Trade Organization:-Looks at issues countries have when trading with