ERIC ED373241: Global Markets. Unit 4. Level 3. Instructor Guide. PACE: Program for Acquiring Competence in Entrepreneurship. Third Edition. Research & Development Series No. 303-04.

35 Pages·1994·0.83 MB·English

by  ERIC

DOCUMENT RESUME
.
ED 373 241
CE 067 075
TITLE
Global Markets. Unit 4. Level 3. Instructor Guide.
PACE: Program for Acquiring Competence in
Entrepreneurship. Third Edition. Research &
Development Series No. 303-04.
INSTITUTION
Ohio State Univ., Columbus. Center on Education and
Training for Employment.
PUB DATE
94
NOTE
35p.; For the complete set, i.e., 21 units, each done
at three levels, see CE 067 029-092. Supported by the
International Consortium for Entrepreneurship
Education, the Coleman Foundation, and the Center for
Entrepreneurial Leadership Inc.
AVAILABLE FROM
Center on Education and Training for Employment, 1900
Kenny Road, Columbus, OH 43210-1090 (order no.
RD303-04 IG, instructor guide $4.50; RD303-04 M,
student module, $3; student module sets, level
1--RD301M, level 2--RD302M, level 3--RD303M, $45
each; instructor guide sets, level 1--RD301G, level
2--RD302G, level 3--RD303G, $75 each; 3 levels and
'esource guide, RD300G, $175).
Teaching Guides (For
PUB TYPE
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UJides
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Guides
Teacher)
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DESCRIPTORS
Administrators; Behavioral Objectives; Business
Administration; Business Education; *Competency Based
Education; Cultural Differences; Decision Making;
Economic Opportunities; Economics; *Entrepreneurship;
*International Trade; *International Trade
Vocabulary; Learning Activities; Managerial
Occupations; Marketing; Politics; Postsecondary
Education; Secondary Education; Self Employment;
*Small Businesses; Teaching Guides
*Global Markets; *Program for Acquiring Competence
IDENTIFIERS
Entrepreneurship
ABSTRACT
This instructor guide for a unit on global markets in
the PACE (Program for Acquiring Competence in Entrepreneurship)
curriculum includes the full text of the student module and lesson
plans, instructional suggestions, and other teacher resources. The
competencies that are incorporated into this module are at Level 3 of
starting and managing. one's own business. Included in the
Learning
instructor's guide are the following: unit objectives, guidelines for
using PACE, lists of teaching suggestions for each unit
,
objective/subobjective, model assessment responses, and overview of :
the three Levels of the PACE program. The following materials are
contained in the student's guide: activities to be completed in
preparation for the unit, unit objectives, student reading materials,
individual 'and group learning activities, case study, discussion
questions, assessment questions, and references. Among the topics
discussed in the unit are the following: the impact of international
trade on small business; international trade options; technical
assistance for international trade; methods of researching specific
international markets; obstacles to international trade;, and one's
potential for entering international trade.(YLB)
p
UNIT 4
LEVEL 3
Unit 4
The
Nolan* PM.
Global Markets
Level 3
HOW TO USE PACE
Use the objectives as a pretest. If a student
is able to meet the objectives, ask him or
her to read and respond to the assessment
PACE
questions in the back of the module.
Program for Acquiring
Competence in
-Entrepreneurship
THIRD EDITION
Duplicate the glossary from the Resource
Guide to use as a handout.
MITI
ON EDUCATION
PPM TRAINING FON EMPLOYMENT
COLLEGE OP EouCATioN
Research & Draelopment Series No. 3:13 -04
THE 0.0 RATE Lowman'
Use the teaching outlines provided in the
Instructor Guide for assistance in focusing
The left side of
your teaching deliver
Objectives:
each outline page lists objectives with the
corresponding headings (margin questions)
from the unit. Space is provided for you to
Discuss the impact of international trade on small
add your own suggestions. Try to increase
student involvement in as many ways as
business.
possihie to foster an interactive learning
process.
Research international trade options.
When your students are ready to do the
Identify technical assistance for international trade.
Activities, assist them in selecting those
that you feel would be the most beneficial
Describe methods of researching specific international
to their growth in entrepreneurship.
markets.
Assess your students on the unit content
Identify obstacles to international trade.
when they indicate they are ready.
You
may choose written or verbal assessments
Model re-
according to
situation.
the
Evaluate your potential for entering international trade.
of
sponses are provided for each module
While these are suggested
each unit.
U S C.EPATN1EiNTOF EDUCATION,
THIS
PERMISSION TO REPRODUCE
GRANTED BY
EOM ATIONAL RESOURCES iNFORMATION
responses, others may be equally valid.
MATERIAL HAS BEEN
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Point; ul mew or opinions stated in this
RESOURCE5
TO THE EDUCATIONAL
dc,-timent do not necessarily represent
BEST COPY AVAILABLE
(ERICA
INFORMATION CENTER
OFRI position or policy
Teaching Suggestions
Objectives
1. DISCUSS THE IMPACT OF
INTERNATIONAL TRADE
ON SMALL BUSINESS.
Lead students in a discussion focusing on reasons that small
Why should small business consid-
business should consider international trade. This discussion has
er international trade?
a twofold purpose:
1. to outline the advantages of becoming involved in inter-
national trade from an entrepreneur's perspective.
2. to discuss the trade deficit balance and to emphasize the
importance of exporting in reducing the national debt.
It may be useful to have students support their ideas with infor-
mation gathered from periodicals and magazines.
2. RESEARCH INTERNATIONAL
TRADE OPTIONS
:ntroduce the concepts of exporting, importing, and global
What are some of the options for
Explain these terms as they relate to the global
sourcing.
small business?
economy.
Ask students to go to the library and gather information about
What is a joint venture?
joint ventures between American companies and different foreign
fi rms. Students may want to classify joint ventures by size (e.g.,
sales, assets) and industry (e.g., manufacturing, retailing, finan-
During class dis-
cial management, real estate/insurance, etc.).
cussion, use the chalkboard or an overhead to outline advantages
and disadvantages of joint ventures.
Define licensing and clearly specify the legal requirements in-
What is licensing?
Option: Ask stu-
volved with this kind of international trade.
offer
dents to identify potential products and industries which
opportunities for licensing.
Refer to the above suggestion.
What is franchising?
Use the world map to identify major regions in the world where
How can direct mail be used?
direct mail may be a good option. Involve students in a discus-
Cost
sion about advantages and disadvantages of direct mail.
and media issues should be emphasized.
Teaching Suggestions
Objectives
Use the overhead or chalkboard to identify organizations which
How can intermediaries be used?
can provide information related to international trade developed
through intermediaries. Be sure to clarify the concept of inter-
mediary by offering examples.
3. IDENTIFY TECHNICAL
ASSISTANCE FOR
INTERNATIONAL TRADE
Note that this section introduces several associations/organiza-
What technical assistance is avail-
Indicate to students the various
tions unknown to students.
able for small businesses interested
methods used to store this information. This will save time in
in international trade?
the future when students need to retrieve this information (.g.,
rol-a-dex, notebooks, classified files, etc.).
4. DESCRIBE METHODS OF
RESEARCHING SPECIFIC
INTERNATIONAL MARKETS
The instructor should acquaint students with the primary and
How can a small business research
secondary research methods. Due to the fact that these are rather
specific international markets?
abstract concepts, the instructor should propose a research ob-
jective (e.g., describing the demand for a certain product in a
certain country, assessing competition for a line of products, etc.)
Use an overhead or chalkboard to outline the five dimensions of
What types of data can be found
Discuss these dimensions as they relate to
country screening.
for evaluating a foreign market?
other Socioeconomic factors (e.g., exchange rates, inflation, un-
employment, etc.).
Where can sources of data be
The instructor should help students understand that memorizing
mines of organizations and associations is not the point here.
found?
Rather, having a general idea about what kind of data is avail-
able and how data can be retrieved and shared are the critical
factors.
Present to students the situation of an entrepreneur who consid-
What general methods could be
Ask stu-
ers getting involved in trade with a foreign country.
used?
dents to identify potential aspects to assess trade opportunities as
they relate to particular features of the foreign country (e.g., an
entrepreneur is considering opening a frozen yogurt company in
Hungary, etc.).
This section can be designed as a clear outline of the first steps
entrepreneurs should take when considering international trade.
The instructor may want to show an overhead with the informa-
tion provided by the International Trade Association, Export
Mailing List Services, etc.
4
Objectives
Teaching Suggestions
5. IDENTIFY OBSTACLES TO
INTERNATIONAL TRADE
What are some obstacles to inter-
Students should be asked to look for articles in periodicals (e.g.,
national trade?
the market section of the Wall Street Journal, U.S.A. Today,
New York Times, etc.) or magazines (e.g., Business Week,
Newsweek, Time, etc.) which present obstacles to international
trade encountered by entrepreneurs.
Why should we know about lan-
Invite a speaker who has experienced language and cultural bar-
guage and culture?
rier problems when doing business overseas. Another suggestion
is to use Axtell's book Do's and Taboos Around the World as a
reference.
6. EVALUATE YOUR POTENTIAL
FOR ENTERING
INTERNATIONAL TRADE
How do you develop sales pro-
Ask a local business owner involved in international trade to
posals and contracts?
speak to the class.
What are some important contract
The instructor should develop a method to introduce the multi-
terms?
tude of new terms in this section. You may want to suggest that
students reference newly encountered terms on cards.
What are other considerations?
Refer to the above suggestion.
How should you decide whether to
There are many other potential discussion items.
As an addi-
enter international trade?
tional activity, the class could do library research to determine
factors to consider about exploring global markets.
5
MODEL ASSESSMENT RESPONSES
(1) increase overall sales volume, (2) use excess production
Some advantages of international trade are:
1.
capacity, (3) provide new markets for products with declining domestic sales, (4) keep up with domestic
competition which does business abroad, (5) improve return on investment, and (6) create new jobs.
(1) GTCs (General Trading Companies),
There are six categories of intermediaries operating in the U.S.:
2.
(2) ETCs (Export Trading Companies), (3) I/EMCs (Import/Export Management Companies), (4) Webb-
Pomerene Associations, (5) MNCs (Multi National Corporations), and (6) Piggybacking.
The International Trade Administration (ITA) created by the U.S. Department of Commerce provides infor-
3.
mation on export opportunities. This information help businesses to understand foreign market conditions.
Develop-
The ITA is composed of four units: (1) the U.S. and Foreign Commercial Service, (2) the Trade
ment, (3) the International Economic Policy, and (4) the Trade Administration.
counseling
The U.S. and Foreign Commercial Service District Offices provide information and professional
to the business community.
up-to-date
Country Desk Officers provide information on trade in different countries. Desk officers keep
assigned to work in and try to remove
on commercial and economic conditions in the country they are
obstacles to American business trade.
There are numerous ways to research international markets. One of them is to contact trade associations
4.
method
for your product or service and inquire as to information pertaining to foreign markets. Another
purchasers. Final-
is to contact local and state Chambers of Commerce to gather information about foreign
through their
ly, local, state, and government agencies assist business with" international commerce activities
numerous ongoing programs.
culture
Some of the obstacles entrepreneurs might encounter when doing business abroad are language and
5.
instable
barriers, limited infrastructure, legal issues, Line and climate differences, product adaptations and
political environment.
Program for Acquiring
Competence in
Entrepreneurship
of learning, with experiences and
Incorporates the needed competencies for creating and operating a small business ac three levels
outcomes becoming progressively more advanced.
Understanding the creation and operation of a business.
Level 1
Planning for a business in your future.
Level 2
Starting and managing your own business.
Level 3
complete content in form of answers
Self-contained Student Modules include: specific objectives, questions supporting the objectives,
module assessment references. Instructor Guides include the full text
to the questions, case studies, individual activities, group activities,
PACE,Third Edition, Resource Guide includes
of each student module and lesson plans, instructional suggestions, and other resources.
organizations.
teaching strategies, references, glossary of terms, and a directory of entrepreneurship assistance
For information on PACE or to order, contact the Publications Department at the
43210-1090
Center on Education and Training for Employment, 1900 Kenny Road, Columbus, Ohio
[phone], [phone].
Support for PACE, Third Edition provided in whole or in part by:
The Coleman Foundation
International Consortium for Entrepreneurship Education
and
Center for Entrepreneurial Leadership Inc.
International Enterprise Academy
Ewing Marion Kauffman Foundation
Center on Education and Training for Employment
The Ohio State University
UNIT 4
LEVEL 3
Global Markets
Your Potential
Nature of
Business
The
as an
Small Business
Business Plan
Opportunities
Entrepreneur
Help for
Pricing
Types of
I
Financing
Location
the
Strategy
the Business
Ownership
Entrepreneur
L
Human
Business
Legal
Selling
Promotion
Resources
Management
Issues
Risk
Customer
Financial
Record
Operations
Management
Credit
Analysis
Keeping
Program for Acquiring
h
'Competence in
Entrepreneurship
Z
D
CENTER ON EDUCATION
AND TRAINING FOR EMPLOYMENT
COLLEGE OF EDUCATION
Research & Development Series No. 303-04
a
THE OHIO STATE UNIVERSIrf
GLOBAL MARKETS
. . .
BEFORE YOU BEGIN
for instructions if this is your first PACE unit.
Consult the
Resource Guide
1.
If you think
Read What are the Objectives for this Unit on the following page.
2.
you can meet these objectives now, consult your instructor.
These objectives were met at Level 1 and Level 2:
3.
Level 1
Define international trade.
Describe trade regions of the world.
Discuss the reasons for exporting and importing.
Identify the impact cultural differences have on business opportunities.
Level 2
Identify the importance of international trade.
Describe the reasons for exporting.
Describe the reasons for importing.
Use international trade/economic terms correctly.
Discuss the socioeconomic differences between potential trading partners.
Identify international trade opportunities for your business idea.
If you need help with the
Look for these business terms as you read this unit.
4.
meanings, ask your instructor for a copy of the PACE Glossary contained in the
Resource Guide.
International trade fair
Antitrust
Joint venture
Arbitration
Licensing
Direct exporting
Mail campaign
End user
Margin
Export trading company
Marketing subsidiary
Free on board (FOB) factory
Multinational corporation
Free on board (FOB) named destination
On-line data base
Free along side (FAS) named destination
Piggybacking
General trading company
Standby letters of credit
Indirect exporting
Trade mission
Irrevocable letter of credit
Intermediaries
Copyright © 1994, Center on Education and Training for Employment,9
The Ohio State University. All rights reserved.
3
GLOBAL MARKETS
WHAT ARE THE OBJECTIVES FOR THIS UNIT?
Upon completion of this unit, you will be able to
discuss the impact of international trade on small business,
research international trade options,
identify technical assistance for international trade,
describe methods of researching specific international markets,
identify obstacies to international trade, and
evaluate your potential for entering international trade.
WHAT IS THIS UNIT ABOUT?
lighted the new relationships that are form-
ing between all members of the global com-
Countries that were enemies for
munity.
centuries are now forming strategic and eco-
The
purpose of this unit is to familiarize
The power of a nation is
nomic alliances.
readers with the role that small businesses
today measured by the Gross Domestic Pro-
can play in the global economy.
Specific-
duct (GDP) per head rather than the gross
ally, we will introduce the techniques that
number of weapons per head.
can be used to investigate marketing oppor-
tunities and solve specific problems as they
True, there is
political instability in
still
arise. This is not a comprehensive guide to
many parts of the world, and it will be a
entering the global marketsthere is no
long time before the world is truly at peace.
such thingbut it will introduce the more
But the threat of global conflict is dimin-
critical areas of international marketing that
ishing rapidly, and the creation of the global
need to be understood and will point you in
economy is a principal reason.
Tradition-
the direction that will provide more industry
ally, countries have gone to war to achieve
specific trade information.
political or economic objectives.
Today,
countries can trade their way into power, and
Recent advances in
communication and
economic objectives can be met on the bat-
transportation technology, combined with
tlefields of the global marketplace.
restructuring, have high-
major political
J