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29 Cards in this Set
- Front
- Back
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Transaction |
is an exchange of things of value * selling one thing of value in exchange of another |
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Business |
the manufacturing and/or sales of goods/services to satisfy the wants/needs of consumers in order to make profit |
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domestic and foreign market |
Domestic: a business that makes most of its transaction within the borders of the country it's based in Foreign: consists of all customers not within the where the business is operated in |
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INTL business |
is the economic system of transactions conducted b/w businesses located in diff. countries |
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Trading Partner |
when a business in another country develops a relationship with another *Trade occurs b/w business not countries |
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foreign/INTL trade |
Means the same thing as intl business |
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Trade |
is interchangeable with business |
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duty/tariff |
is a tax most countries place on imports to make the price of domestic goods competitive *duties increase the price of foreign goods |
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globalization ( not synonymous w/ intl business) |
is a process whereby a national/regional economies/cultures have integrated through new global communications: techno., FDI, INTL trade, migration, and new forms of transportation and flow of $$$ *globalization is not synon. with intl business, thousands of businesses that are not global are international businesses |
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interdependence |
the dependence of countries for each other for products/services no country is totally self-sustainable |
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primary industry * how do u add value? |
consists of extraction/ intial processing (raw materials) e.g agriculture Primary industries add value to their products by extracting them from the earth/sea then processing it |
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secondary industry *how do you add value? |
Made up of primary and secondary manufacturing * produce both capital goods (machinery) and consumer goods (clothing, packaged goods etc) they add value by creating processed/manufactured goods --> also by making a specific item for a company |
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branch plant |
is a factory operated from a company outside of a host country * Canada considered to have a branch plant economy |
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Tertiary industry/ Service Sector *how do u add value? |
Provides the necessary services to other businesses and consumers, such as banking, trans., communications etc. They add value by making it available to consumers |
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foreign direct investment |
to control some or all of a business's operations |
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portfolio investment |
purchase of stocks, bonds, and other financial investment and other financial investment issued by Canadian firms |
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What is Canada's top trading partners and what is the history w/ them? |
The united states is the largest trading partner of Canada, both countries heavily rely on each other. Majority of Canadian exports (86%) are to the U.S, the U.S also heavily relies on Canada, as 23% of their exports are to Canada. American brands and companies can be found anywhere in canada canada: exporter of oil and water
decreasing labour jobs (cheaper in asia) early manufacturing canadians went to work |
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How has intl business helped canadians? |
- having access to any product/service available anywhere in the world - Canadian companies exporting WW, opening new markets for their products/ services --> creating new jobs/ opportunities for canadians -New technology invented in other countries avail. in Canada--> for use in hospitals, factories etc. - foreign labour--> reduced costs
-specialize in in extraction of raw material for intl competition - more competition ( intl) cheaper and more efficient products |
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How has intl business harmed canadians? |
-Large companies can monopolize smaller domestic business -Increased foreign ownership of companies in canada : foreign companies want to impress branch executives in their homes countries--> first priority is their native country e.g Target ( not enough profit) Lack of research and development: foreign owned firms staff their R & D from their home countries, the ideas they produce lead to more jobs/ profit in the domestic country Reduced exports- exports to other markets are usually not part of the subsidiary business plan : they do not get the benefits w/ exporting--> greater employment opport. and bigger markets for Canadian markets loss of renewable resources less job opportunities for canadians, b/c of foreign labour |
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Canada's major primary industries: list them |
Agriculture, fishing, hunting, trapping: foresting/ logging. energy/ mining and water |
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How is Canada's secondary industry? And why are we considered a branch plant economy? |
Canada has a weak secondary manu. sector, over 50% of all manufacturing businesses in canada are foreign owned e.g kellog, Kraft Foods * Known as a branch plant economy |
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What are the five ways a business is considered INTL? |
- own a retail/distribution outlet in another country - own a manufacturing plant in a diff. country - export to businesses e.g selling canadian made -import from business in another country -invest in businesses in other countries |
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The difference b/w FDI and portfolio investment |
FDI is more long term, and can control all or some of a business's operation, whereas portfolio investment is generally short term, and invests in financial instruments |
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advantages of portfolio investment |
Portfolio investment can help start-up businesses or save failing ones * The Bay- american company acquired the company |
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the Importance of the internet |
The internet became one of the most important to businesses/consumers to buy and sell --> open market They also use the internet as a means of communication b/w businesses |
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culture industry: How is Canada's industry? |
encompasses entertainment created w/n a particular region Canada has very little entertainment sources, bc we get ours from the U.S--> harder for Canadians to break into the industry |
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Research and Development: Importance |
R & D is essential to the growth of a manufacturing firm/efficiency and increased profitability of a processing or service business |
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2008 market crash |
Oil prices spiked up, and so did everything else. before the market crash, two major banks were lending money at low rates, called subprime loans. Since people were having trouble to pay for necessities and mortgage payments, the bills added up.Selling the most mortgages allows for the payers to get commission. The major companies lost a tremendous amount of money causing them to shut down. |
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NAFTA agreement |
The north american free trade agreement Goods made in USA and Mexico can enter Canada duty free. Becuase of this, imports from mexico with 13b in 2008, greatly increased, exports from Canada has also increased with 6b in 2008 |
