Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
44 Cards in this Set
- Front
- Back
|
Domestic business |
Making buying, selling goods and services within one's own country |
|
|
International business |
Includes all business activities needed to create,ship, and sell goods and services across national borders |
|
|
Nations |
Trade with one another to acquire goods they do not have, and to sell goods they can easily produce |
|
|
Importing |
The buying of products or raw materials from other nations |
|
|
Exporting |
The selling and shipping of finished products or raw materials to other nations
|
|
|
Absolute advantage |
When a country is the only country that can provide a good or service or it can produce a greater quantity of a good or service than competitors using the same amount of resources |
|
|
Infrastructure |
Systems that make an organization or nation run (such as transportation, communication, water, electrical systems) |
|
|
Balance of trade |
The comparison between the total value of imports and the total value of exports |
|
|
Trade surplus |
Total exports > total imports |
|
|
Trade deficit |
Total exports < total imports |
|
|
Balance of payments |
The total flow of money going into the country (receipts) minus the total flow of money leaving the country (payments) |
|
|
Positive balance of payment |
Total flow of money going into the country > total flow of money leaving the country |
|
|
Negative balance of payment |
Total flow of money going into the country < total flow of money leaving the country |
|
|
International business or trade between nations improves.. |
Political relations |
|
|
Protectionism |
When countries protect their domestic manufacturing by keeping out or limiting foreign-made goods through the use of tariff or non tariff barriers |
|
|
Non-tariff barriers |
Such as import quotas (limit on the number of products that can come into the country), and trade embargoes (ending trade with another nation) |
|
|
North American free trade agreement between Canada, the U.S and Mexico |
NAFTA |
|
|
Common markets |
Agreements among member countries that eliminate trade barriers or restrictions that reduce free trade, and allow workers to move freely across borders |
|
|
Deal with the rules of trade between nations Ex. The world trade organization (WTO), the International Monetary Fund (IMF), and the world bank |
International trade organizations |
|
|
The impact of international trade has many potential economic advantages for our |
Nation , corporations, citizens |
|
|
Almost ___ the goods Canada produces are exported |
Half |
|
|
No two countries in the world trade more than.... |
Canada and the US |
|
|
Top Canadian export to the world in 2016 |
Oil (19% of total exports) |
|
|
Top Canadian import from the world in 2016 |
Vehicles (16% of total imports) |
|
|
Advantages to our corporations |
Greater access to world markets, cheaper labour |
|
|
Greater access to world markets |
Opportunity for a company to expand and grow beyond national borders as a method of gaining market share and competitive advantage |
|
|
Greater access to world markets |
Opportunity for a company to expand and grow beyond national borders as a method of gaining market share and competitive advantage |
|
|
Cheaper labour |
By moving production to lower wage countries (outsourcing), canadian companies can increase profitability by providing customers what they need and want, but at a lower production cost |
|
|
Different ways companies can get involved in international business ventures: |
- joint ventures - franchises - strategic alliances - multinational corporations (MNC's) |
|
|
Critics who highlight the potential social costs of international businesses primary areas of concern: |
- Loss of jobs in the home country - Human rights and labour abuses - environmental degradation |
|
|
The ___ of doing business to not apply when doing business in another region |
Standards |
|
|
Demand (D) |
Represents the consumer side of the market |
|
|
Demand |
The quantity of a product that people are willing I buy at a certain price |
|
|
The Law of Demand |
States that the higher the price of the product, the less people will demand it |
|
|
Consumers demand for a good or service depends on: |
- price of the good or service - price of substitute or complimentary items - consumers income - future expectations about either income or price - taste or preference for the good or service |
|
|
Demand |
The quantity of a product that people are willing I buy at a certain price |
|
|
The Law of Demand |
States that the higher the price of the product, the less people will demand it |
|
|
Supply (S) |
Represents the business side of the market |
|
|
Supply |
The quantity of particular good and services that producers and sellers are willing to supply to the market when receiving a certain price |
|
|
The law of supply |
States that as prices rise, the quantity supplied by producers tends to increase |
|
|
Equilibrium |
When the amount of goods being supplied is exactly the same as the amount of goods being demanded (when the lines cross) |
|
|
Disequilibrium |
Occurs whenever the price of quantity is not equal |
|
|
Surplus |
If the price is set too high or above equilibrium, excess supply or ___ will be created |
|
|
Shortage |
Because the price is so low too many consumers may want the good while the producers are not making enough of it |
