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134 Cards in this Set
- Front
- Back
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Define Business |
Defined as the manufacturing and/or sale of goods and/or services that satisfy needs to consumer to make a profit. |
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What is a Transaction? Give an example. |
A Transaction is a exchange of things of value. Sell phone for money. |
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What is a Domestic Business? |
If you bought all your supplies and ingredients directly from Candian business and sold lemonade to Canadian customers, you were running a Domestic Business. |
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Why is it difficult to only be a totally Domestic Business? |
Difficult as Canda relies heavily on imports from machinery and products. |
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What are the two main sources of lantic sugar? |
Either from Cuba (international business) or from Canadian Beets (domestic business). |
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What makes up a domestic market? |
A domestic market means that all of your customers live in the county where your business operates. Like if you sell lemonade to only your friends, neighbours, and passerby's. |
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What makes up a foreign market? |
A foreign market consists of all customers in a country other then your own. Like If you sell lemonade in Mexico. |
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List 5 main ways for companies to participate in international business. |
1. Own a retail or distribution outlet in another country. 2. Own a manufacturing plant in another country. 3. Export to businesses in another country. 4. Import from businesses in another country. 5. Incest in businesses in another country. |
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What is another word for business? |
Trade |
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When is a country considered to be a trading partner with Canada? |
When a business in Canada develops a relationship with a business in another country, it is considered a trading partner. |
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Who were Canada's first trading partners? |
Canada's first trading partners were the Aboriginals |
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When did trade with Asia become important? |
Trade with Asia became important after WWII when Japan's economy grew rapidly. China has emerged in the last 30 years as a major trading partner. |
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Why is Mexican trade important to Canada? |
Is important because of NAFTA as there are no duties or tariffs on it and make for a good deal. |
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What is a duty or a tarrif? Why do countries impose duties/tarrifs? |
A duty of a tarrif is a tax most countries place on imports in order to make the price of domestic goods competitive. They increase the price of foreign imports. |
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What are the three emerging markets that Canadian businesses should know about? |
1. The Middle East. 2. India. 3. Africa. |
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What is the main product that Canada imprts from Morocco? |
Mandarin Oranges. |
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What is globalization? |
Globalization is the process whereby national or regional economies and cultures have become integrated through new global communication technologies, foreign direct investment, international trade, migration, new forms of transportation, and flow of money. |
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What is a primary industry? Provide Example. |
This secor consists of extraction and initial processing of all raw materials. Ex: Agriculture, Fishing, Hunting and trapping, forestry and logging, enegery and mining. |
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Does Canada have a strong secondary industry sector? |
Canada has a weak secondary industry sector. Secondary sector is refinement of products. Canada is known for raw materials not secondary materials (like soft drinks, or shoes). |
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What is another name for tertiary industries? Give two examples. |
Another name is Service sector (Provides Services). Ex: 1. Banking. 2. Transportation. |
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What is a branch plant economy? |
A branch plant is a factory operated from a country outside of a host country. |
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Why is Canada considers to have a branch plant economy? |
Canada is considered to have a branch plant economy because of laws require a branch plant in order to do business with a Canadian business. |
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How do secondary industries add value to a product? |
Secondary industries add value to a product by further refining it. Ex: Diamond is taken from raw form and turned to jewelry. |
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How do tertiary industries add value to a product? |
Add value by making it available to a customer. |
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What are four ways that international business helps Canadians? |
1. Variety of Products. 2. New Markets, More Jobs. 3. Foreign Investment. 4. New Processes and Technologies. |
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What does FDI stand for? |
Foreign Direct Investment. It means when a non Canadian company invests in a Canadian company. With FDI, they can control some or all of the companies business operations. |
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How does portfolio investment help Canadian Business? |
Help by buying companies that are in trouble. Also help by starting a company with their investment. |
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What does R&D stand for? |
R&D stands for research and development. |
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Why is it important to retain an R&D department in Canadian Business? |
It is important to retain an R&D department as it keeps the company competitive and also helps retain highly trained individuals in Canada. Many of these work in American R&D firms. |
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What are two main ways that international business hurts Canadians? |
1. Loss of Culture/Identity. 2. Increased foreign ownership of companies in Canada. |
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Why is US culture so dominant in Canada? Provide two reasons. |
1. Almost 90 percent of Canadians live near the American border where all our culture, TV, music come from. 2. There are fewer Canadian movies then there are American movies. |
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What percentage of Canadian corporations are foreign owned? What percentage of Canadian business revenue do these companies generate? |
1 percent. It account for 30% of Canada's business revenue. |
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What are five problems associated with foreign ownership of Canadian business? |
1. Foreign companies have foreign loyalties. (Will close business if it doesn't please them). 2. Lack of research and development. 3. Reduced Exports. 4. Revenues leave Canada to pay head office costs. 5. Economic destabilization. |
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What is importing? Give Example. |
Importing means bringing products or services into a country. Goods and services are intended to be used by another business and/or resale. Example: BBQ imported from states to Canada for sale. |
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What is exporting? Give Example. |
Exporting occurs when companies outside of Canada purchase Canadian goods and services.
Like Imports, the can be intended to be used by another business and/or for resale. Blackberry exports it service to the world. |
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Explain the value added concept. |
The value added concept is when a company takes a raw material like diamond and makes it into a beautiful ring. The value is added because they made it into a ring. |
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Define licensing agreement. Give an example. |
A licensing agreement gives a company permission to use a product, service, brand name, or patent in exchange for a fee or royalty. |
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Define Franchise. What is included in a franchising agreement? |
A franchise is an agreement to use a company's name, services, products, and marketing. They sign a contract and agree to follow all of the parent companies rules. For a fee, the parent company provides service support in financing, operations, human resources, marketing, ads, and other things. |
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Give an example of a Canadian joint venture. |
A joint venture is used to establish a presence in a foreign country. It is a shared ownership. One example is Pizza Nova (Canadian), and Trade Winds (Mining company thats Canadian). |
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What is a tariff? |
This is a trade barrier that are taxes or duties that are put on imported products or services. Raises the cost of imported products so domestic products are more competitive. |
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Define protectionism. |
The shielding against foreign competition (by using a tariff) is called protectionism.
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What is a trade quota? |
A trade quota is another form of protectionism. Is a government imposed limit on how much amount of a product can be imported in a certain period of time. Decreases the foreign competition. |
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Define Embargo. |
When a government makes a trade embargo, it bans trade on a specific product or with a specific country. |
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Explain how standards can be a trade barrier. |
Standards can be a trade barriers as the standards are different for different countries. There are different for electricity, environment etc. |
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What is an exchange rate? |
The exchange rate is the amount of currency in relation to the currency of another country. |
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Who are winners and loser of a high Canadian dollar? |
Winners: Importers, Canadian Travellers, and Major league sports teams. Losers: Exporters, Canadian tourism, and Canadian retailers. |
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What factors influence the exchange rate? |
Economic conditions in Canada. Trading between countries. Politics. Psychological Factors. |
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What is speculating? |
Currency speculations means buying, holding, or selling foreign currency in anticipation of its value changing. Done to profit from the fluctuations.
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Why are time zones considered a barrier to international business? |
Time zones are considered a barrier as one place in the world in 3 AM while another is 3 PM, making meetings and other important tasks hard to do. |
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What is Culture? |
Culture encompasses the knowledge, experiences, beliefs, values, attitudes, religion, symbols, and possessions gained by a group of people living in the same area for generations. |
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How do we learn our culture? |
We learn our culture when it is transmitted from one generation to the next by education or by example. |
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What might happen when a person from a foreign culture moves to Canada? |
They will create a sub culture. They bring parts of their culture (food, language etc.) to the new country. |
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Name a subculture in Canada. |
A sub culture in Canada in the Pakistani-Canadian sub culture. |
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Define Counterculture. |
Counterculture is something that opposes mainstream values and attitudes. |
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What are four things that a business should consider before spending a great deal of money and time studying a foreign market? |
1. Degree of cultural differences.
2. Number of foreign operations. 3. Products. 4. Services. |
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What is the major service that Canada exports? |
Financial Service Industry. |
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How does culture affect financial services? |
One in Japan might want to save for their daughters Coming of age day (buy expensive dress). Where one in Canada save for a summer vacation. |
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What are cultural norms? |
A value that the society holds in common. Child labour after 12. |
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What does the term "Blood diamond" mean? |
A blood diamond is a diamond that has been mined using child labour, or labour in bad conditions and the profit is used to buy guns and other harmful things. |
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What are 3 major components of "Meeting culture"? |
1. Time perception (MonoChronic (Linear) or PolyChronic (Open)). 2. Spatial perception. 3. Non-Verbal Communication (Noise levels, Eye Contact etc.). |
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In Albania, what us a "no" in terms of body movements? |
Nod your head up and down. |
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5 questions you should ask about business etiquette in another country. |
1. Should (and when) you present your business card? 2. What should you wear? 3. What if you are late? 4. Gift or no? 5. Topics to avoid. |
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What are four questions all economics systems answer |
1. What should the country produce and how much? 2. How should labour and capital be allocated? 3. How should goods and services be distributed? 4. What should the price of goods and services be? |
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Define Market Economy. How does this economy deal with private property, profit, and competition? What are 3 advantages and 3 disadvantages? |
Is also known as as capitalism. The 4 questions are answered by individuals and businesses. Deals with - Property: Corporations and people are encouraged to own property. The owners can do what they want. Profit: Profit belongs to the owners, they can do whatever they like with it. Competition: Companies compete with each other by offering warranties, services, reputation. Good for consumers. 3 Advantages: Freedom of speech, new products, low prices. 3 Disadvantages: Gap between rich and poor, unhealthy products, lack of consumer education. |
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Define Centrally Planned Economy. How does this economy deal with private property, profit, and competition? What are 3 advantages and 3 disadvantages? |
Is also known as as communism. The 4 questions are answered by the government .Deals with -Property: Government owns everything. Profit: Profit belongs to the government. Competition: Not much, all owned by the government. 3 Advantages: Assured minimum standard of living, Long term stability, and no unemployment. 3 Disadvantages: Corruption, Lack of innovation, and large military presence. |
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Define Mixed Economy. How does this economy deal with private property, profit, and competition? What are 3 advantages and 3 disadvantages? |
Is also known as as modified free trade system. The 4 questions are answered by the government. Mix of both centrally planed and market economies. Private Property: Individuals and Government. Profit: Encouraged, and taxed by government. Competition: Strong against other corporations and government also competes. 3 Advantages: Individual incentive, social services, and consumer protection. 3 Disadvantages: High Taxation, less motivation to work hard, and government competition. |
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Define Democracy. What are disadvantages? |
Characterized by free and fair elections, rule of law, free speech, free press, and freedom of religion. Not perfect, politicians might want to be re-elected rather then make a difference. Expensive to maintain. |
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Describe autocracy: |
Ruled by a single individual or a small group of people. |
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Characteristics of Underdeveloped Country. |
Severe poverty and substandard living conditions. Poor infrastructure and no healthcare. |
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Characteristics of Developing Country. |
Improved literacy rates, better health care, and technological advancement. |
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Characteristics of Developed Country. |
High standard of living, high literacy rate, best health care.
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Name the business cycle. |
4 Stages: Recession: Economy slows down. Trough: Bottom of cycle, slowest economy. Expansion: Begins to grow again. Peak: At the top of the cycle. Repeats. |
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Define and provide examples of absolute advantage: |
One country has an absolute advantage if it produces something more efficiently then other countries. Canada has an absolute advantages in Apples so it will only grow apples. Then trade them to get what they need. |
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Example of specialization: |
When Canada grows Apples only because they are good at it.
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Define opportunity cost. |
Giving something up to get something else. |
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Define comparative advantage. |
Comparative advantage is how good a country is in making something compared to another country. |
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State six ways the government has a role in international trade. |
1. Setting Tariffs. 2. Setting Embargos. 3. Education. 4. Military. 5. Establishing import and export laws. 6. Establishing immigration laws. |
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Purpose of Government of Canada trade offices in the world? |
They are there to help Canadian business prosper in other countries. Help with importing/exporting etc. |
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What services does the consulate provide? |
Provide Canadians abroad with many services like Embassies, High Commissions, Consulates etc. |
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What is team Canada? |
Team Canada is the Prime Minister, Minister of international trade and other senior officials. Go on trade missions. |
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Purposes of trade missions? |
To promote international business in other countries. |
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What does a lobbyist do? State 4 lobby groups in Canada. |
Lobbying is the process of which companies and special groups as well as individuals try to influence the government to rule a public policy that will help the group out. 4 groups are gun, tobacco, oil, and pharmaceutical lobbyists. |
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What is globalization? |
Globalization is the process whereby national or regional economies and cultures have become integrated through new global communication technologies, foreign direct investment, international trade, migration, new forms of transportation, and flow of money. |
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4 Advantages of Globalization: |
1. Lower Prices. 2. Outsourcing. 3. Better jobs. 4. Innovation. |
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4 disadvantages of Globalization: |
1. Loss of Canadian jobs.
2. Fear of loss of Canadian jobs. 3. Increased pollution. 4. Loss of Canadian productivity. |
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3 types of globalization strategies: |
1. Global Strategy (One big market, all the same). 2. MultiDomestic Strategy (Customized for each place.). 3. Transnational Strategy (Best of both above, respects domestic, as well as international). |
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What is a trade agreement? |
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What is NAFTA. |
North American Free Trade Agreement. |
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3 Advantages of NAFTA. |
1. Higher paying jobs in Canada.
2. Better access to materials and workers. 3. Increased trade. |
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3 DisAdvantages of NAFTA. |
1. Wider gap between poor and rich.
2. Loss of Canadian culture. 3. Loss of Canadian companies. |
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4 Trade agreements signed by Canada. |
1. NAFTA 2. FTAA 3. EU 4. Central America |
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Purpose of EU? |
The purpose of the EU is to promote peace, economic growth, and prosper in save place. |
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Headquarters of EU? |
Brussels, Belgium.
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3 governing bodies of EU. Purpose? |
1. EU Commission (Runs everyday things).
2. EU Council (Decision Making). 3. EU Parliament (Laws, Budget, Supervise). |
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5 Advantages of Euro. |
1. Decreasing rate of exchange rate fluctuations. 2. Price transparency. 3. Easy billing. 4. Economic Stability. 5. Elimination of currency conversion costs. |
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2 Disadvantages of Euro. |
1. Loss of culture. 2. Heavy initial cost to implement. |
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What is WTO? 3 Purposes of WTO? |
WTO is the World Trade Origination. 1. Forum for negotiation. 2. Rules. 3. Dispute settlement. |
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3 advantages of WTO? |
1. Promotes peace. 2. Lowers cost and raises standard of living. 3. Free Trade (No Tariffs). |
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Criticism of WTO? |
That it destabilizes markets for its own gain. |
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Why WTO vital to Canada. |
WTO gives us strength and support in the world. |
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What is APEC? |
Asia-Pacific Economic Co-operation. |
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Size of APEC? |
21 members, 40% of world population, 43% of all trade. |
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APEC 3 pillars?
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1. Trade and investment liberalization.
2. Business facilitation. 3. Economic and technical co-operation. |
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Benefit to its members (APEC)? |
They all experienced more trade. |
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Purpose of G8? |
Purpose is to discuss economic issues, trade liberalization, and help for developing countries. |
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Purpose of G20? |
Purpose is to strengthen economic ties. Talk about economic issues, get rid of trade barriers etc. |
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What does OECD do? |
To advance democracy and market economies.
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What is the purpose of the world bank? What is it? What 2 make it up? |
Provides technical and money support to developing countries. Made up of developed countries. 1. IBRD (International bank for reconstruction and development). 2. IDA (International Development Association). |
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Purpose of the IMF. |
Tracks economic trends of countries, offer advice and help out developing countries. |
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Define Corporate Social Responsibility. |
Is defined as the duty of the company's management to be as socially responsible as possible.
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Provide 4 examples of CSR: |
1. Treating employees ethnically. 2. Being environmentally conscious. 3. Ensuring safe working environments. 4. Sponsoring local sports teams. |
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Benefits of CSR? For companies |
Companies can use positive CSR as a marketing tool. Governments wont interfere with their own laws. |
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2 criticism of CSR? |
1. Costs company money, and shouldn't be the main focus.
2. Spend valuable company time and employee time. |
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How can companies ensure that CSR is consistent throughout countries? |
They can make sure that it will be the same by implementing policies that promote positive CSR. |
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Purpose of stakeholder analysis? |
The purpose of this is to find out which groups interests are the most important. Primary or secondary stake holders?
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Difference between primary and secondary stakeholders? |
Primary: Customers, suppliers, employees. Secondary: Local community and media. |
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Define business ethnics? |
Refers to the set of rules that everyone should follow to make ethical decisions for their company.
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Define Ethnic imperialism. |
From this is view point, everyone's cultural views and values are the same world wide.
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Define Cultural relativism. |
From this viewpoint, everyone's cultural views and values should be respected. |
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Define Pollution. Example |
Pollution is the contamination on the environment caused by production. Example: Air, water, land, ozone pollution.
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Define resource depletion. Example |
This is the consumption of resources that are non-renewable or scarce.
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3 examples of environmental damage by business. |
1. Exxon Valdez Oil Spill 2. Deforestation in Brazil. 3. Largest pile of trash in the oceans. |
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Describe a sweatshop. |
Factories in underdeveloped countries where employees work in unsafe conditions, and are not treated fairly.
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Define corruption. |
Involvement in illegal activity to further ones own agenda for gain. |
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Terms that corruption might be known as. Which are illegal in Canada? |
Bribes, Gift, Tip, "Grease", and Commissions. Bribes and high commissions are illegal.
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Define dumping in a business context. Example. |
Means to sell products at a low price so that the company who is competing wont be able to compete. Also to get rid of stock but not change the price in home country.
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What is Microcredit? |
Small loans that are given to people to try and stir entrepreneurship.
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Why are women targeted? |
So that they will spend the money on their family, and will learn to be more independent to gain respect, skills and more.
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What is Kiva? |
Kiva is website that you can use to get involved in Microcredit.
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What is a NGO? |
Non-Governmental Organizations that help people in need. Are non-profit. Made up of mostly volunteers.
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Purpose of fair trade? |
Is to provide fair and equal honest deals between for all members of supply chain.
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Benefits of Fair Trade? |
Safe working conditions, decent wages, adequate housing etc.
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What is Canada's fair trade organization? |
TransFair Canada.
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What is ISO? What are the advantages? What is the difference between ISO 9000 and ISO 14000 series? |
ISO is a standard for agriculture, pharmaceuticals etc. Advantages are that they are safe, reliable, productive, and environmentally responsible. 9000 series is for quality management. 14000 environment management. |
