1.1 How has international business affected Canada?

Question 1

Define globalization

Answer 1

Is the process whereby national or regional economies and cultures have become integrated

Question 2

State the 6 factors that account for that integration.

Answer 2

1. improved global communication technologies
2. increased levels of foreign investment
3. increased levels of international trade
4. increased levels of migration
5. better transportation
6. expanded flows of money

Question 3

What are Canada’s major trade partners in order?

Answer 3

1. United States
2. China
3. United Kingdom
4. Japan
5. Mexico
6. Germany
7. South Korea

Question 4

Briefly state the advantages of international trade

Answer 4

1. Greater availability and lower cost of goods
2. Access to new technologies
3. Larger markets and more potential employees
4. Increased foreign investment

Question 5

How are the prices of bananas remain at an affordable and consistent level?

Answer 5

Because many tropical countries compete for Canada’s demand for Banans.

Question 6

Where is Pearson Educational based?

Answer 6

England

Question 7

Where is Apple based on?

Answer 7

United States

Question 8

Operations include…

Answer 8

Manufacturing plants to sales offices, distribution centers, or retail businesses.

Question 9

How do foreigners investment make a positive impact on our domestic economy?

Answer 9

by injecting money into it

Question 10

How can a foreigner can invest in a country?

Answer 10

1. portfolio investment
2. foreign direct investment

Question 11

Define portfolio investment

Answer 11

occurs when an individual or corporation in another country purchases stocks or bonds that are issued by a company or national government.

Question 11

Define foreign direct investment

Answer 11

occurs when a foreigner or foreign company purchases some or all of the controlling interest in a domestic company.

Question 12

Who were the main sources of European investment in Canada in 2016?

Answer 12

Switzerland and Netherlands

Question 13

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.

Answer 13

Eaton’s

Question 14

This was a software and programming company taken over by Vector Capital in 2003. One of their most famous products was CorelDRAW.

Answer 14

Corel

Question 15

This company was Canada’s largest steel maker, and was acquired by Arcelor in 2006.

Answer 15

Dofasco

Question 16

This brewery was one of the oldest companies in Canada, and merged with Coors in 2005.

Answer 16

Molson

Question 17

Briefly describe the disadvantages of international trade

Answer 17

1. Increased foreign ownership
2. Erosion of culture

Question 18

Why are exports reduced when foreign investor purchases a company?

Answer 18

This will be done by the parent company in the home country

Question 19

How are revenues reduced in Canada?

Answer 19

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.

Question 20

Describe erosion of culture

Answer 20

They say that globalization imposes a pervasive western-style culture tainted by the excesses of the West: consumerism and materialism.

Question 21

Why are many U.S. production companies are enticed to film in Canada?

Answer 21

due to our traditionally lower dollar, tax credits, and the varied Canadian scenery and landscape.

Question 22

Sears’ purchase of Eaton’s is an example of:

Answer 22

Company acquisition