IB

Question 1

Business

Answer 1

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

Question 2

Transaction

Answer 2

An exchange of things of value

Question 3

Domestic business

Answer 3

Domestic business is a business that makes most of its transactions within the borders of the country in which it is based

Question 4

A domestic business in Canada is

Answer 4

• owned by Canadians
• relies on Canadian products and services
• sells products and services to Canadians

Question 5

International business

Answer 5

International business is the economic system of transactions conducted between businesses located in different countries.

Question 6

Domestic market

Answer 6

The customers of a business who live in the country where the business operates

Question 7

Five ways for a business to be considered an international business:

Answer 7

Five ways for a business to be considered an international business: 1.Own a retail or distribution outlet in another country
2.Own a manufacturing plant in another country
3.Export to businesses in another country
4.Import from businesses in another country
5.Invest in businesses in another country

Question 8

Foreign market

Answer 8

The customers of a business who live in a different country than the one where the business operates.

Question 9

international trade takes place between

Answer 9

businesses and not countries

Question 10

Interdependence

Answer 10

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

Question 11

Three main areas of interdependence:

Answer 11

1. Primary industries
2. Secondary industries
3. Tertiary industries

Question 12

Primary industries

Answer 12

The sector of the economy characterized by the extraction of natural resources from the earth or sea

Question 13

Five major primary industries

Answer 13

agriculture
fishing, hunting, and trapping
forestry and logging
energy
Mining

Question 14

Secondary Industries

Answer 14

Industries that create a finished, usable product. Secondary manufacturing produces capital goods(products used by businesses) and consumer goods(products purchased by individuals).

Question 15

Branch Plant

Answer 15

A factory owned by a company based in another country

Question 16

What kind of economy does Canada have

Answer 16

Branch-plant economy

Question 17

Why does Canada have this kind of economy

Answer 17

National Policy of 1879, which stated that businesses wanting to reach Canadian consumers needed to build factories in Canada, led to this situation

Question 18

Tertiary Industry

Answer 18

Industries that do not make a product or extract resources from the earth, but provide necessary services to consumers and other businesses. Examples include banking, construction, communications, transportation, and retail sales.

Question 19

International business helps Canadians:

Answer 19

Variety of products
New markets, more jobs
Foreign investments
New processes and technologies

Question 20

How International Business Hurts Canadians

Answer 20

Loss of culture/identity
Increased foreign ownership of companies in Canada
Foreign companies are loyal to investors and executives in home country
Research and development is usually carried out in the home country Exports are reduced, as products manufactured in branch plants stay in Canada
Revenues leave Canada to pay head office costs
Economic destabilization

Question 21

Globalization

Answer 21

Globalization
The process whereby national or regional economies and cultures have become integrated through:
New global communication technologies
Foreign direct investment
International trade
Migration
New forms of transportation
Flow of money

Question 22

Describe the Trade with Emerging Markets in India

Answer 22

Population of over one billion people
Workforce generally young and well educated
Has become major centre of outsourcing and manufacturing
Lack of infrastructure and widespread corruption are persistent problems
Indian companies are aggressively expanding into international markets
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Question 23

Describe the Trade with Emerging Markets in Africa

Answer 23

African imports to Canada are very low
Business opportunities limited by unstable governments, lack of infrastructure, rural economiesRich in primary resources
Some countries (Morocco, South Africa) are beginning to emerge as major trading partners

Question 24

Trade with the United States

Answer 24

 United States declared independence from Britain in late 1700s
 Needed to become self-reliant
 Invention of steam engine, cotton gin helped rapid growth of American industry
 Canada supplied raw materials that were needed in the United States
 United States became Canada’s largest trading partner—this remains true today

Question 25

Trade with Asia

Answer 25

Canada began trading with Japan after World War II
Japan became known for high-quality electronics and automobiles
China has more recently become a trading partner
Chinese-made products are inexpensive and well made, and popular with North American retailers

Question 26

Trade with Mexico

Answer 26

Developed since signing NAFTA in 1993
 Goods made in Mexico and the United States now enter Canada duty-free
 Mexico has become one of Canada’s top five trading partners since 2000

Question 27

Trade with the Middle East

Answer 27

 Has traditionally centred on oil, but this commodity is not sustainable
 Political instability, lack of industrialization in much of the region has limited trade
 United Arab Emirates (Dubai), Israel, and Egypt have established trading relationships with Canadian businesses that do not depend on oil