1.1 How has international business affected Canada? Flashcards
Define globalization
Is the process whereby national or regional economies and cultures have become integrated
State the 6 factors that account for that integration.
- improved global communication technologies
- increased levels of foreign investment
- increased levels of international trade
- increased levels of migration
- better transportation
- expanded flows of money
What are Canada’s major trade partners in order?
- United States
- China
- United Kingdom
- Japan
- Mexico
- Germany
- South Korea
Briefly state the advantages of international trade
- Greater availability and lower cost of goods
- Access to new technologies
- Larger markets and more potential employees
- Increased foreign investment
How are the prices of bananas remain at an affordable and consistent level?
Because many tropical countries compete for Canada’s demand for Banans.
Where is Pearson Educational based?
England
Where is Apple based on?
United States
Operations include…
Manufacturing plants to sales offices, distribution centers, or retail businesses.
How do foreigners investment make a positive impact on our domestic economy?
by injecting money into it
How can a foreigner can invest in a country?
- portfolio investment
- foreign direct investment
Define portfolio investment
occurs when an individual or corporation in another country purchases stocks or bonds that are issued by a company or national government.
Define foreign direct investment
occurs when a foreigner or foreign company purchases some or all of the controlling interest in a domestic company.
Who were the main sources of European investment in Canada in 2016?
Switzerland and Netherlands
This company was at one time Canada’s largest retailer, with a history going back to 1869. The company was purchased by Sears in 1999.
Eaton’s
This was a software and programming company taken over by Vector Capital in 2003. One of their most famous products was CorelDRAW.
Corel
This company was Canada’s largest steel maker, and was acquired by Arcelor in 2006.
Dofasco
This brewery was one of the oldest companies in Canada, and merged with Coors in 2005.
Molson
Briefly describe the disadvantages of international trade
- Increased foreign ownership
- Erosion of culture
Why are exports reduced when foreign investor purchases a company?
This will be done by the parent company in the home country
How are revenues reduced in Canada?
Because revenues will be filtered back to the parent company in the home country and it will be used for research and development, expansion and other businesses outside Canada.
Describe erosion of culture
They say that globalization imposes a pervasive western-style culture tainted by the excesses of the West: consumerism and materialism.
Why are many U.S. production companies are enticed to film in Canada?
due to our traditionally lower dollar, tax credits, and the varied Canadian scenery and landscape.
Sears’ purchase of Eaton’s is an example of:
Company acquisition
