1.4 International business Flashcards
The mutual reliance between you and businesses is called?
Interdependence
The interdependence among nations is the result of
international business
why do some countries specialize in producing certain goods for trade while others focus on different goods?
It all comes down to the economic advantages they have compared to the advantages enjoyed by other countries.
What is a competitive advantage?
When a company does something better or more efficiently
What is Absolute advantage?
A country’s ability to produce a certain good more efficiently than another country.
What is a comparative advanatge?
A comparative advantage exists when one country has the ability to produce a good with a lower opportunity cost than another country. The value of the goods it sacrifices in deciding to produce one good instead of others with higher profit
What are primary industries?
Industries involved in the extraction and basic processing of raw materials are known as primary industries.
AThere are six main primary industries in Canada:
hunting, fishing, and trapping
agriculture
water
energy
logging and forestry
mining
What are secondary industries?
Are industries that are involved in the manufacture of goods.
True or False: Canada’s secondary industries are strong.
False
What ae tertiary industries?
are businesses that provide necessary services to other businesses and to consumers.
Examples of tertiary industries
Construction, transporation, communication and banking
What is the tertiary sector of the economy is known as
service sector or service industry
Which two countries are experiencing rapid growth in tertiary industries?
India and China
What is a tariff?
Is a tax or duty placed on imported goods that is designed to protect a domestic industry.
What is a quota?
A quota is an imposed limit on the amount of a certain good that can be imported into a country. Its function, once again, is to protect domestic manufacturers in certain industries.
What are trade sanctions
Are another form of restriction on international trade.
What are foreign investment restrictions?
Is when a government can restrict international trade is by placing restrictions on foreign investment.
How is foreign investment restrictions in Canada applied?
The Investment Canda Act restricts foreign ownership the act requires government reviews of all proposed foreign investment in order to ensure that the majority of Canadian resources and businesses remain under domestic ownership.
What are currency fluctuations?
Changes in the value of currencies can also result in barriers to international trade.
What are embargoes?
An embargo is a trade restriction that bans all trade with another country. Embargoes are put in place when a government does not agree with another country’s policies – often because of human rights violations.
Milk products imported into Canada are subject to an import duty.
tariff
Only a certain quantity of timber can be imported into the U.S. every year.
Quotas
A long-standing trade restriction between the United States and Cuba was put in place in the 1960s.
Embargo
The Government of Canada has placed a restriction on the provision to Libya of technical, financial, and other assistance related to military activities or the use of arms and related material.
Sanction
Foreigners are not allowed to own oceanfront property in Mexico.
Foreign investment restriction
