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International Business > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

Business

A

Manufacturing and/or sale of goods and/or services to satisfy the wants and needs of consumers to make a profit

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2
Q

Transaction

A

Exchange of things of value

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3
Q

Domestic business

A

Business transactions within the borders of one country

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4
Q

International business

A

Transactions conducted between businesses located in different countries

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5
Q

Domestic market

A

All your customers live in the country where your business operates

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6
Q

Foreign market

A

All the customers are in a country other than your own

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7
Q

5 ways to internationalize a business

A
  1. Own a retail of distribution outlet in another country
  2. Own a manufacturing plant in another country
  3. Export to business in another country
  4. Import from business to another country
  5. Invest in business in another country
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8
Q

The Middle East

A
  • oil centred = not sustainable
  • political instability & lack of industrialization limit trade
  • United Arab Emirates trade w/ Canada (not oil)
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9
Q

India

A
  • pop over 1 billion
  • growing middle class
    workforce= young / well educated
  • major centre of outsourcing and manufacturing
  • lack of infrastructure & widespread corruption
  • companies aggressively expanding into international markets
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10
Q

Africa

A
  • low imports to Canada
  • unstable government, lack of infrastructure, rural economies = limited business opportunities
  • rich in primary resources
  • Morocco, South Africa = trade partners
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11
Q

Globalization

A

Process whereby national or regional economies and cultures have become integrated

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12
Q

Interdependence

A

The reliance of two or more nations on each other for products or services.

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13
Q

3 main areas of interdependence

A
  1. Primary industries
  2. Secondary
  3. Tertiary
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14
Q

Primary industries

A

Natural resources

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15
Q

5 major primary industries

A
  1. Agriculture
  2. Fishing/ hunting/ trapping
  3. Forestry/ logging
  4. Energy
  5. Mining
    (Water sometimes included in Canada)
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16
Q

Secondary industries

A

Create a finished usable product

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17
Q

Products purchased my business

A

Capital goods

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18
Q

Products purchased my individuals

A

Consumer goods

19
Q

Branch plant

A

A factory owned by a company based in another country

20
Q

Canadas economy =

A

Branch plant as many businesses are owned by foreign investors

21
Q

Tertiary industries

A

Provide necessary services to consumers and other businesses
Ex. Banking

22
Q

The internet

A
  • primary tool for businesses and consumers to buy and sell

- transformed the world into an open market place

23
Q

How do international businesses help Canada (4 ways)

A
  1. variety of products
  2. new markets = more jobs
  3. foreign investments
  4. new processes & technologies
24
Q

How does international business hurt Canadians

A

Loss of cultural identity

25
Q

5 negative impacts of increased foreign ownership of companies in Canada

A
  1. Foreign companies have foreign loyalties
  2. Lack of research and development
  3. Reduced exports
  4. Revenues leave Canada to pay head office costs
  5. Economic destabilization
26
Q

Why is eating local better

A
  • grows the domestic economy
  • saves nutritional value
  • better for the environment
27
Q

Why is buying food from other countries cheaper?

A

Labour is cheaper

28
Q

Pros of foreign investment

A
  • help Canadian firms expand and enter foreign markets
29
Q

When did Columbus come to Canada?

A

1600s

30
Q

When and where were trade settlements established

A

Halifax. Montreal. Quebec. Ottawa. Kingston. Toronto. 1700s

31
Q

Why does Canada have stronger ties w/ Britain than France?

A

Britain won the seven years war w/ France therefore Canada traded more with England than France

32
Q

When did the us gain independence

A

Late 1700s

33
Q

Us industrial revolution

A
  • 1775 James watt = steam engine

- 1794 Eli Whitney = Cotton gin

34
Q

What did Canada supply to the us

A

Wheat and timber

35
Q

Why is us bigger than Canada

A 
US = manufacturing - more jobs - dependant 
Can = resource based trading- dependant on Britain
36
Q

Why are manufacturing jobs decreasing in us and can

A

Cheaper labour and improved technology = more economical to manufacture in Asia

37
Q

When did Canada start trading with japan

A

Late 1940s

38
Q

What is japan known for

A

Automobiles and high-tech equipment

39
Q

What led to free enterprise promoted in several Chinese districts?

A

Liberalization of communist economic policies

40
Q

2/3 Chinese exports are foreign owned or invested why?

A

Because labour is cheap and abundant in china

41
Q

When was NAFTA signed

A

1993

42
Q

What spurred North America / Mexico trade

A

NAFTA

North American free trade agreement

43
Q

What is NAFTA

A

Good made in Mexico or the US can enter Canada duty free.

-Mexican goods = bargain

44
Q

Duty

A

A tax most countries place on imports to make the price of domestic goods competitive with imported goods

International Business (9 decks)

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