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Ch 5: Global Trade & Business Law

About This Chapter

The lessons contained in this chapter were developed to teach you about global trade and business law. The study features included here will enhance your learning experience.

Global Trade & Business Law - Chapter Summary and Learning Objectives

International trade has to take into account rules and agreements, penalties and recourse. This often involves navigating treaties and finding common ground between disparate cultures and political systems. The lessons in this chapter instruct you on the topic of global trade and business law.

Lessons are short videos, developed by our expert instructors, that make use of a quiz at the end to test your understanding of the material. If you need to restudy anything, you can review the video transcript or use the keyword-based timeline tool to replay any video section. When you have completed the chapter, you will know:

  • The importance of the global market and trade
  • Importing, exporting and the forces that affect global trade
  • Methods and strategies for expanding into international business
  • International trade organizations, agreements, business treaties, regulations and restrictions
  • The economics and politics of international trade

Lesson Objective
The Importance of the Global Market and Global Trade: Role & Advantages Argue the importance of international trade and global markets.
Importing and Exporting in a Global Market: Definition, Process & Importance Appraise the importance of global trade.
Forces that Affect Trade in Global Markets Compare the forces that affect global market trade.
International Business Expansion Methods Dissect expansion methods for international business.
Breaking into Foreign Markets: International Marketing Strategies Weigh the options for entry into foreign markets.
International Business Treaties Categorize the international business treaties.
International Trade Organizations and Trade Agreements Critique the international trade organizations and agreements.
International Trade Regulations & Restrictions Assess international laws, trade regulations and trade restrictions.
Regional Integration: Definition, Influence & Purpose Analyze regional integration agreements.
Trade Restrictions and Foreign Labor Explain trade restrictions and how they can combat cheap foreign labor.
Advantages and Disadvantages of Trade Protectionism Debate the pluses and minuses of trade protectionism.
Sovereign Immunity: Definition, Act and Waivers Dissect the application of sovereign immunity.
The Economics & Politics of International Trade Break down international trade economics and politics.
New Trade Theory (NTT): Definition & Analysis Evaluate the New Trade Theory.
International Trade Policy & Strategic Trade Policies Consider the role governments take in international trade.

17 Lessons in Chapter 5: Global Trade & Business Law
Test your knowledge with a 30-question chapter practice test
The Importance of the Global Market and Global Trade: Role & Advantages

1. The Importance of the Global Market and Global Trade: Role & Advantages

We all need resources, products and service to live and thrive. Sometimes these things are not readily available locally. In this lesson, you'll learn about the importance of international trade and globalization in fulfilling our needs and wants.

Importing and Exporting in a Global Market: Definition, Process & Importance

2. Importing and Exporting in a Global Market: Definition, Process & Importance

The lifeblood of the global market is trade. In this lesson, you'll learn about the importance of importing and exporting and related concepts including trade deficits, balance of payments, and formal and informal barriers to trade.

Forces that Affect Trade in Global Markets

3. Forces that Affect Trade in Global Markets

The global marketplace is diverse. While diversity provides opportunity, it also provides challenges. In this lesson, you'll learn about the forces that affect trade in the global market. You'll also have a chance to take a short quiz after the lesson.

International Business Expansion Methods

4. International Business Expansion Methods

Oftentimes, the best opportunities for a business are not at home but abroad. In this lesson, you'll learn about different methods of taking advantage of the international market. You'll also have a chance to take a short quiz after the lesson.

Breaking Into Foreign Markets: International Marketing Strategies

5. Breaking Into Foreign Markets: International Marketing Strategies

Companies look to international markets to increase their sales and profits. Market managers must decide on the mode of entry into a foreign market. The options, ranging from least to most risky, are exporting, licensing, franchising, contract manufacturing, joint ventures and direct investments.

Treaties Under Article II of the U.S. Constitution

6. Treaties Under Article II of the U.S. Constitution

Treaties are an important part of international law. A treaty is a legally binding agreement made between two or more government entities. This lesson explains the difference between bilateral and multilateral treaties.

International Trade Organizations and Trade Agreements

7. International Trade Organizations and Trade Agreements

International trade organizations and trade agreements have enormous power in the global trade environment. In this lesson, you will learn about the roles of the GATT, NAFTA, and the World Trade Organization.

International Trade Regulations & Restrictions

8. International Trade Regulations & Restrictions

Importing and exporting are vital elements to a healthy U.S. economy. Businesses should be familiar with international laws regarding trade. This lesson defines imports and exports and discusses international trade regulations and restrictions.

Regional Integration: Definition, Influence & Purpose

9. Regional Integration: Definition, Influence & Purpose

Regional integration is when a group of countries get together and develop a formal agreement regarding how they will conduct trade with each other. There are many different levels of involvement, and in this lesson, we will review the types and how a manager should understand and match them to his or her company's international needs.

Trade Restrictions and Foreign Labor

10. Trade Restrictions and Foreign Labor

Discover why trade restrictions are sometimes used to combat cheap foreign labor. Learn about outsourcing, job protection, and infant industry strategies.

Advantages and Disadvantages of Trade Protectionism

11. Advantages and Disadvantages of Trade Protectionism

Countries want to win the game of international trade by exporting more than they import. Some countries pursue trade protectionism to do this. In this lesson, you'll learn about the advantages and disadvantages of this strategy and related concepts.

Sovereign Immunity: Definition, Act and Waivers

12. Sovereign Immunity: Definition, Act and Waivers

The Foreign Sovereign Immunities Act places limitations on lawsuits that involve foreign sovereign nations. This lesson explores the Foreign Sovereign Immunities Act and explains when immunity is applicable.

The Economics & Politics of International Trade

13. The Economics & Politics of International Trade

We will discuss the economics & politics of international trade through the definition of open trade and its benefits and drawbacks. In addition, the ideas of competitive advantage and political patience will be shown as key indicators of global success.

New Trade Theory (NTT): Definition & Analysis

14. New Trade Theory (NTT): Definition & Analysis

In this lesson we'll discuss New Trade Theory. This theory tells us that trading patterns can be explained by economies of scale and network effects. We'll compare the theory to the Traditional Theory of International Trade and look at some examples.

International Trade Policy & Strategic Trade Policies

15. International Trade Policy & Strategic Trade Policies

Governments sometimes intervene in international trade. In this lesson, we'll examine the arguments against strategic trade policy and discuss the policy instruments used by governments to influence international trade flows.

Absolute Advantage in Trade: Definition and Examples

16. Absolute Advantage in Trade: Definition and Examples

In this lesson, you'll learn what absolute advantage is and how to easily identify it within examples of international trade. In addition, you'll learn the important difference between absolute advantage and comparative advantage.

Differentiating between Comparative and Absolute Advantage

17. Differentiating between Comparative and Absolute Advantage

International trade is embraced by countries due to many benefits. In this lesson, we will discuss the differences between comparative and absolute advantage and the importance of specializing in production.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
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Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
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