Chapter 2Global Business课件.ppt

Ten Largest Foreign and U.S. Multinational Corporations Source: Fortune Global 500, July 1, 2008, p. 165. Copyright ? 2006 Time, Inc., . All rights reserved. 精品文档 Debate Issue: Should the United States fear Japan? YES The U.S. continues to carry an extremely large trade imbalance with Japan, while Japanese direct investment in the U.S. economy continues to escalate. Many feel that Japan unfairly restricts U.S. imports and that the U.S. should retaliate by restricting Japanese imports. American consumers are becoming increasingly dependent on Japanese products. Japanese firms are also increasing capacity, reducing costs, and developing new technologies much faster than their U.S. counterparts. The result is a worldwide, consumer market that is slowly becoming dominated by the Japanese. NO The total foreign investment in the U.S. economy is currently less than 4%. In fact, the British and Canadians have more investment in the U.S. than the Japanese. With globalization becoming common, trade and foreign investment are usual practices in today’s world. For example, Chrysler now owns 11% of Mitsubishi, while Ford owns 24% of Mazda. Foreign investment is good for the U.S. because it is being directed at permanent assets like plants and equipment, thus stimulating industry, providing jobs, and stabilizing the economy. 精品文档 The General Agreement on Tariffs and Trade and the World Trade Organization General Agreement on Tariffs and Trade (GATT) International organization of 153 nations dedicated to reducing or eliminating tariffs and other trade barriers Most-favored-nation status (MFN)—Each member of GATT was to be treated equally by all other members Kennedy Round, Tokyo Round, Uruguay Round, Doha Round World Trade Organization (WTO) Created in the Uruguay Round of GATT negotiation as a successor to GATT WTO oversees GATT provisions, has judicial powers to meditate trade disputes arising from GATT rules and exerts more binding authority than GATT 精品文档 International Ec