Managers must develop a global vision if they are to recognize and react to international business opportunities, as well as remain competitive at home. Having a global vision has become an imperative for some businesses, especially large corporations, manufacturers, and retailers.

A global vision can also be an important consideration for smaller firms as they work to manage costs, optimize efficiencies, and grow their market reach. Having a global vision means recognizing and reacting to international business opportunities, being aware of threats from foreign competitors in all markets, and effectively using international distribution networks…

global vision — The ability to recognize and react to international business opportunities, be aware of threats from foreign competition, and effectively use international distribution networks…. absolute advantage — The situation when a country can produce and sell a product at a lower cost than any other country or when it is the only country that can provide the product. countertrade — A form of international trade in which part or all of the payment for goods or services is in the form of other goods and services. multinational corporations — Corporations that move resources, goods, services, and skills across national boundaries without regard to the country in which their headquarters are located.

Be able to explain the impact of a currency devaluation; describe the policy of free trade and its relationship to comparative advantage; discuss the concept of natural trade barriers.