Download - Unit Two Government and Global Business
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Unit TwoGovernment and Global Business
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Government and Global Business
The Trading GameEach group represents an imaginary
nation with a varied amount of natural resources and technology.
I represent the market and will only purchase finished products that are exactly to my specifications.
The members of the nation with the most money at the end will win a prize.
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Unit 2 Vocabulary
BoycottCommon MarketDemocracyDutyEconomic NationalismExpropriationFree-Trade AgreementFree-Trade ZoneHost CountryHome Country
Most-Favored-Nation (MFN)
Political SystemProtectionismQuotaSocial ResponsibilityTax HolidayTotalitarian SystemTrade Embargo
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Unit 1 Essential Question
How do governments influence international business?
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Amplifying Questions
What are the various What are the various political systems around political systems around the world?the world?
How does the political How does the political environment of a host environment of a host country affect an country affect an international company?international company?
How does the political How does the political environment of the environment of the home country affect an home country affect an international company?international company?
Essential Question 1Government and Global Business
How does politics affect global businesses?
International Business pg. 87-91
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Types of Political Systems
Democracy—all citizens take part in making the rules that govern them
Totalitarianism—political control held by one person or a small group
Mixed systems—characteristics of both systems
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Political Relationships in Business
Global companies operating in host countries
Global companies’ relationships with home countries
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Amplifying Questions
What laws and trade What laws and trade barriers discourage barriers discourage global business?global business?
How can political risk How can political risk disrupt global business disrupt global business activity?activity?
What are the major What are the major types of taxes that types of taxes that governments impose governments impose around the world?around the world?
Essential Question 2Government and Global Business
How do governments discourage global business?
International Business pg. 93-98
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Government Activities Influence Business
Laws that protect workers and consumersTrade barriers
TariffsQuotasBoycottsLicensing requirements
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Political Risks in International Business
Trade sanctionsExpropriationEconomic nationalismCivil unrest or war
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International Taxes
Customs dutySales taxExcise taxPayroll-related taxValue-added tax (VAT)Income taxes
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Amplifying Questions
What government What government actions encourage actions encourage global business activity?global business activity?
What U.S. government What U.S. government agencies help reduce agencies help reduce the risk of international the risk of international business?business?
How do tax incentives How do tax incentives encourage global encourage global business?business?
Essential Question 3Government and Global Business
How do governments encourage global business?
International Business pg. 100-104
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Encouraging International Business
Free-trade zonesMost favored nation (MFN)Free-trade agreementsCommon markets
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Government Protection From International Risk
Export-Import Bank of the United States (Eximbank)
Overseas Private Investment Corporation (OPIC)
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Tax Incentives
Corporate tax deduction on income earned by foreign subsidiaries
Double-taxation avoidance treaties