General Questions Flashcards
hWat is the Government of Canada’s role when it comes to trade? What do they do to help in the global business environment ?
§ Enacts regulations and Agreements like:
○ North American Free Trade Agreement (NAFTA)
□ Makes the conduct of business in North America predictable and transparent, thus increasing the trade and investment flows between the three countries–> brought growing and risking standards of live for people in all three countries.
§ Initiatives to promote efficient borders
○ Canada-United states smart border declaration
□ Provided an effective framework for addressing border issues and was support by a 32-point action plan that has been the mechanism for progress on cross border transportation initiatives (result of 9-11)
§ Security and prosperity partnership
® Between Canada , USA, Mexico
® Increases continual integration and the need to work trilateral lay to make our society’s more secur and our economies more resilient.
§ Many departs of federal government net and provincial mange programs that encourage international business expansion.
○ Give advice to businesses (Trade commissioners)
○ Provide treating programs on trade practices and the rules that govern international business
○ Assist in providing services to new and smaller exports
§ Inform domestic enterprises of their rights under international trade and investment protection rules
§ Identify aspects of business policy that limit the expansion possibilities of Canadian firms
§ How to handle problems and assessing priorities.
Funding (EDC- Export Devleopment Canada)
- Describe and explain the Free Trade Agreement (FTA). What does it do and how does it help?
a. Free trade agreement–> zero tariffs between member countries and reduced non-tariff barriers
b. Benefits
i. Stable framework to conduct business
ii. Secure access to markets for Canadian exporters
iii. Protectin for Canadian investors abroad
iv. Access to greater choices and better prices for Canadian consumers
v. Increased productivity and efficiency for the Canadian economy.
Contributes to a higher standard of living
What is the WTO and what are its primary functions?
○ Multilateral agreement
○ Facilitate world trade
○ Govern international trade
○ Assist in resolving trade disputes.
○ Prepare emerging an developing nations to join the international trade and business community
Agenda is to create trade liberalization which will enhance trade flows and reduce poverty, enhance security and import the quality of life for people around the world.
List and explain characteristics of champions I the global business environment
○ High self-confident ○ Risk-taking potential ○ Persistence ○ Attraction to challenges ○ High level energy ○ Gravitation tow wares leadership ○ Seemingly inexhaustible drive ○ Spirit of adventure ○ Strong need for personal accomplishment ○ Self-reliance ○ Goal-oriented ○ Creative and versatile ○ Positive attitude ○ Will to take the initiative Strong sense of commitment
List Canada’s top 10 trade partners
i. Unified stats
ii. United Kingdom
iii. China
iv. Japan
v. Mexico
vi. Germany
vii. Korea
viii. Netherlands
Brazil
Canada’s role in exportation
11th in the world
a resilient nation- we trade a lot despite our dollar.
- trade employs 1 in 5 Canadians – has decreased because of Us-china.
- access to global markets has provided Canadian manufactures with customer base to expand production and special in higher valued goods.
- Emerging markets in brics (Brazil Russia, India, china, south Africa)
Value chain
– describes the full range of activities undertaken to bring a product or service form its conception to its end use and how these activities are distributed over geographic space and across international borders
Looks at process independent of specific firms\
Supply chain
- focus primarily on enabling the flow of goods or services form producer to consumer
What are the four types of dispute resolution ?
- Negotiation
- Mediation
- Arbitration
- Litigation
What happens when there is a dispute between two countries? Why sue?
Who handles it in the WTO?—> the dispute resolution body. (I don’t know who handles it in the WTO–> my guess is trade commissioners?
Why sue?–> to have a legally binding agreement in future interactions.
Responsibilities of EDC
• Provides innovative finances and insurance and bonding solutions to Canadian companies that export goods and services or invest in other countries.
• Give tips on how to begin exporting
• Helps find customers
Export credit (if you don’t trust the client)(can cover up to 90%)
What is dumping ?
Selling in foreign market cheaper than in local market –> this reduces competition in the international markets
What is anti-dumping?
Tariffs add on imports that exporter is trying to dump in the market.
What is protectionism ?
• Government protecting businesses and industries in their country
Enact tariffs on goods that exporters are trying to bring into our country so they have to raise their price to break even or make profit. This gives us an advantage because domestic companies can sell at a lower price. It is counteractive because other countries then counteract with tariffs on our exports in their foreign markets.
What are subsidies?
-financial support from governemtn to industry so they can sell their product at a cheaper price.
There is controversy over this because it is a form of protectionism, and results in dumping in another country. Therefore there are tariffs enacted on these products.
