Chapter one

Question 1

Domestic vs International Business:

domestic business

Answer 1

A domestic business is a company or organization that operates within a single country’s borders, conducting all its production, sales, and transactions within that country. It does not engage in international trade or business activities outside its home nation.

Question 2

Domestic vs International Business:

International business

Answer 2

International business refers to trade and commercial activities that take place across national borders, including imports, exports, investments, and global operations.

Question 3

Interdependence

Answer 3

Interdependence in trade refers to the mutual reliance between countries or economies for goods, services, and resources. It occurs when nations trade with each other to access products they lack or produce more efficiently, fostering economic connections and global cooperation.

Question 4

Imports Vs Exports:

Imports

Answer 4

Imports are goods or services brought into a country from another country for sale or use.

Question 5

Imports vs Exports:

Exports

Answer 5

Exports are goods or services sold and sent from one country to another for trade or consumption.

Question 6

Trade Surplus Vs Trade Deficit:

Trade Surplus

Answer 6

Trade surplus occurs when a country’s exports exceed its imports, resulting in a positive balance of trade.

To calculate balance of trade (BOT) subtract imports from exports. If the number is positive, you have a trade surplus. If the number is negative you have a trade deficit.

Question 7

Trade Surplus Vs Trade Deficit:

Trade deficit

Answer 7

Trade deficit occurs when a country’s imports exceed its exports, resulting in a negative balance of trade.

To calculate balance of trade (BOT) subtract imports from exports. If the number is positive, you have a trade surplus. If the number is negative you have a trade deficit.

Question 8

Primary Industries

Answer 8

Canada remains strong in the primary industry sector, which involves the extraction and initial processing of raw materials. The five major primary industries are:
1. Agriculture
2. Fishing, Hunting, and Trapping
3. Forestry and Logging
4. Energy (Oil, Gas, and Hydroelectric Power)
5. Mining

Question 9

Secondary Industries

Answer 9

• Secondary industries involve manufacturing and processing raw materials into finished goods. This includes:
• Primary manufacturing (processing raw materials) - oil refining, pulp and paper, diamond cutting.
• Secondary manufacturing (producing consumer and capital goods) - soft drinks, cereal, electronics.

Question 10

Tertiary IndustriesTertiary industries provide services rather than producing goods. Major service industries include:
* Banking and Finance
* Construction and Real Estate
* Transportation and Logistics
* Retail and E-commerce