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26 Cards in this Set
- Front
- Back
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Why study international business? |
To gain a better understanding of how trade works and to provide an insight into the global economy and business. |
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Fruit activity conclusion |
Canada makes a lot of money off of fruit exports and trading. We also get exotic fruits from other countries. |
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Trade Game Conclusions |
- Trade improved standards of living (happiness) - All items have a different individual value - International trade involves many countries - Negotiations play a role - There is a supply and demand for everything - Promotes communication and international relations - The more freedom permitted, the better off we are |
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What is Business (Trade)? |
The manufacturing and/or sale of goods and/or to satisfy the wants and needs of consumers to make a profit |
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What is Barter Trade? |
A system of exchange where goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. |
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What is Domestic Business? |
A business that makes most of its transactions within the borders of the country in which it is based. Ex. You bought lemons from a Canadian importer, you sold lemonade only to Candians |
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What is International Business? |
The economic transactions conducted between businesses located in different countries. Ex. You bought your lemons directly from a Florida grower |
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What is the Domestic Market? |
All of the customers of a business that live in the country of operation Ex. You sold lemonade to only Canadians |
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What is the Foreign Market? |
All the customers in a country other than your own Ex. You bottle your lemonade and sell it to businesses in Mexico |
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What is a Trading Partner? |
A country involved in a business relationship with another country. Ex. Canada and the U.S. |
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What is a Transaction? |
An instance of buying or selling something; a business deal. |
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5 Ways for a Business to be Considered International |
1. Own a retail or distribution outlet in another country Ex. Tim Hortons and Lulu Lemon 2. Own a manufacturing plant in another country Ex. McCain's and Blackberry 3. Export to businesses in another country Ex. Bombardier and Canada Goose 4. Import from businesses in another country Ex. Canadian Tire and Loblaw's 5. Invest in businesses in another country Ex. T.D Canada Trust
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Canadian Trade involves... |
Europe U.S. Asia Mexico |
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Emerging Markets |
Middle East India Africa |
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Canadian Trade with Europe Conclusion |
-Trade grew quickly after permanent settlements were established in Canada - Demand for raw materials (beaver pelts, fish, lumber) grew in Europe - England defeated France in the Seven Years' War which led to Canada's reliance on England for finished goods - Many major cities were established near water to facilitate the export of raw materials and import |
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Canadian trade with U.S. conclusion |
- Because of U.S. declared independence, they needed to become self reliant - The invention of the steam engine, and the cotton gin helped rapid growth of American industry - Canada supplied natural resources to them - U.S. became Canada's largest trading partner, and still is today. |
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Canadian trade with Asia conclusion |
- Canada began trading with Japan after WW2 - Japan became known for high-quality electrical products and automobiles - China has more recently become a trading partner - Chinese-made products are inexpensive and well made, and popular with North American retailers |
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Canadian trade with Mexico conclusion |
- Mexico trade developed since signing NAFTA in 1993 - Goods made in Mexico and U.S. now enter Canada duty-free - Mexico has become one of Canada's top 5 trading partners since 2000 |
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Canadian trade with Middle East conclusion |
- Trade is traditionally centered on oil - Political instability and lack of industrialization in much of the region has limited trade - United Arab Emirates (Dubai), Israel, and Egypt have established trading relationships with Canadian businesses that do not depend on oil |
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Canadian trade with India conclusion |
- The workforce is generally young and well educated - India has become a major centre of outsourcing and manufacturing - Lack of major highways, telecommunication services, and reliable electrical power are persistent problems - Indian companies are aggressively expanding into international markets |
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Canadian Trade with Africa conclusion |
- African imports to Canada are very low - Business opportunities are limited by unstable and corrupt governments, major infrastructure problems, and rural economies - Like Canada, Africa is rich in raw materials - Some countries (Morocco, South Africa) are beginning to emerge as major trading partners |
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What is Globalization? |
The process where national or regional economies and cultures have been integrated through a global network of communication, transportation and trade |
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Globalization is integrated through... |
- New global communication technologies - Foreign direct investment - International trade - Migration - New forms of transportation - Flow of money |
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Top 3 Global Brands |
1. Apple 2. Google 3. Coca Cola |
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What is a Branch Plant? |
Factory operated from a country outside of a host country. Ex. Kellogg's |
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Why does Canada have a branch plant economy? |
50% of all of the processing and manufacturing businesses in Canada are owned by foreign companies |
