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Module 1 - Lesson 3 - International Business and Trade - Gonjoran, Rema Jean D. BSBA 3G
Module 1 - Lesson 3 - International Business and Trade - Gonjoran, Rema Jean D. BSBA 3G
BACHELOR OF
SCIENCE IN
BUSINESS
INTERNATIONAL BUSINESS
AND TRADE
BA 317
LESSON 3
Module 1
JONAS A. ENRIQUEZ
Instructor
Ground Floor Administration Building, Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Phillipines 6560
Tel. (053) 507-0082 ןTelefax. (053) 507-0082 & Cell # 0995-471-5907
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph ןEmail: op@bipsu.edu.ph ןFacebook: www.facebook.com/WowBiPSU
2. Develop the case study by identifying the progress of the business from host
country up to the country where the business is operating
3. Critically analyze the differences of political/legal system, economic dimensions
and cultural dynamics.
Overview:
International business and trade is an advance subject for BSBA students. In the beginning
of this course, all students will focus on the development of the concepts of international
business. This subject underlined most on the trading system. Notwithstanding, this focuses
first on the theories whom the students may able to direct observe in their surroundings.
Let’s Start
International Trade: Theory and Applications are not only about business interests in a
particular country. Likewise global trade is much more of this, in fact, it quite complicated
and high risk but manageable and can offer very interesting invested return. Understanding
the theories on absolute advantage and comparative advantage gives way to develop
effectively in terns of trading system.
Answer me:
Ground Floor Administration Building, Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Phillipines 6560
Tel. (053) 507-0082 ןTelefax. (053) 507-0082 & Cell # 0995-471-5907
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph ןEmail: op@bipsu.edu.ph ןFacebook: www.facebook.com/WowBiPSU
our GDP growth , and a constant output growth domestically considered as
economically stable.
Answer:
3. Critically discuss the impact of the absolute advantage in the local area.
Answer:
Absolute advantage has a great impact in the local area in a way that when a
country has absolute advantage of producing a particular goods with fewer
resources means that the local area will also benefit because the resources or
materials are taken locally and the labor workers will be hired locally.
Let’s Analyze
Comparative Advantage
Comparative Advantage
Illustration 2
Ground Floor Administration Building, Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Phillipines 6560
Tel. (053) 507-0082 ןTelefax. (053) 507-0082 & Cell # 0995-471-5907
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph ןEmail: op@bipsu.edu.ph ןFacebook: www.facebook.com/WowBiPSU
Activity 12: Comparative Advantage
Answer:
3. Critically discuss the impact of the comparative advantage in the local area.
Answer:
The impact of comparative advantage in the local area is that they'll benefit from it
because if a country produced a goods and services at a lower opportunity cost , it
means that goods and services will be cheaper or will be sell at a lower price .
Ground Floor Administration Building, Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Phillipines 6560
Tel. (053) 507-0082 ןTelefax. (053) 507-0082 & Cell # 0995-471-5907
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph ןEmail: op@bipsu.edu.ph ןFacebook: www.facebook.com/WowBiPSU
Activity 13. Absolute and Comparative Advantages
Advantage
Theories Disadvantage
• Ability to produce • It has drawbacks for
Absolute greater quantity of that foreign exchanges. One
particular goods and limitation is it can disrupt
services than other supply and demand•
countries
• Fewer resources or
materials needed in
production of goods and
services.
Ground Floor Administration Building, Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Phillipines 6560
Tel. (053) 507-0082 ןTelefax. (053) 507-0082 & Cell # 0995-471-5907
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph ןEmail: op@bipsu.edu.ph ןFacebook: www.facebook.com/WowBiPSU
Let’s Use it:
STRENGHTS WEAKNESSES
INTERNAL 1. Products of the highest 1. Expensive Products
quality 2. Imitability of Products
2. Location and Aethestic 3. Overdependence in the United
EXTERNAL appeal of its store States Market
3. Strong Market Position and 4. Self- Cannibalization through
Global brand recognition Overcrowding
4. Customer base Loyalty
OPPORTUNITIES
1. Technological Advances S1 & O4 - Innovate new high W3 & O2 - Expansion in other
2. Global expansion quality product mix countries around the
3. Expansion of retail operations and offerings globe not just in United
4. Expanding Product Mix and States
offerings
THREATS
1. Increased Competition S1 & T1- Innovate and maintain
2. Price Volatility in the Global high quality products to W1&T4 - Maintain high quality
Coffee Market outscore competitors products to be an
3. Changing consumer taste and advantage with low cost
lifestyle choices competitors.
Ground Floor Administration Building, Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Phillipines 6560
Tel. (053) 507-0082 ןTelefax. (053) 507-0082 & Cell # 0995-471-5907
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph ןEmail: op@bipsu.edu.ph ןFacebook: www.facebook.com/WowBiPSU
4. Low-cost competitors
ASSESSMENT
2. Which of the two theories described most to your business? Support your answer.
Answer:
In my perspective , Starbucks mostly has an absolute advantage over other
coffeehouses around the world in terms of producing more high quality coffee drink
very quickly because of their advanced technology and skilled workers . The
starbucks imports arabica beans from Asian Pacific countries and has skilled workers
to make their high quality coffee drinks.
Ground Floor Administration Building, Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Phillipines 6560
Tel. (053) 507-0082 ןTelefax. (053) 507-0082 & Cell # 0995-471-5907
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph ןEmail: op@bipsu.edu.ph ןFacebook: www.facebook.com/WowBiPSU
COURSE
POST TEST
A. Absolute Advantage
Answer:
B. Comparative Advantage
Answer:
C. SWOT Analysis
Answer:
2. Comparative Advantage
Answer:
Ground Floor Administration Building, Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Phillipines 6560
Tel. (053) 507-0082 ןTelefax. (053) 507-0082 & Cell # 0995-471-5907
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph ןEmail: op@bipsu.edu.ph ןFacebook: www.facebook.com/WowBiPSU
The Philippines has a comparative advantage in agricultural goods like
sugarcane and coconuts. The Philippines exports coconut oil and copra in
other countries.
Ground Floor Administration Building, Main Campus, P. Inocentes St., P.I. Garcia, Naval, Biliran Province, Phillipines 6560
Tel. (053) 507-0082 ןTelefax. (053) 507-0082 & Cell # 0995-471-5907
SUC Level III-A (Per DBM-CHED Joint Circular #B dated June 21, 2007
Website: www.bipsu.edu.ph ןEmail: op@bipsu.edu.ph ןFacebook: www.facebook.com/WowBiPSU