Introduction to International Buisness

Question 1

Describe the impact of globalization on workers’ positions.

Answer 1

Globalization, along with technology and automation, weakens the position of workers.

Question 2

Explain the relationship between globalization and business operations.

Answer 2

Globalization compels companies to adapt and innovate their operations to keep up with the changing environment.

Question 3

Describe the process of globalization.

Answer 3

Globalization is the process whereby national or regional economies and cultures become integrated through various means such as new global communication technologies, foreign direct investment, international trade, migration, new forms of transportation, and the flow of money.

Question 4

How do new global communication technologies contribute to globalization?

Answer 4

New global communication technologies facilitate the exchange of information and ideas across borders, enabling businesses and individuals to connect and collaborate internationally.

Question 5

Define foreign direct investment in the context of globalization.

Answer 5

Foreign direct investment refers to investments made by a company or individual in one country in business interests in another country, which is a key component of globalization as it links economies.

Question 6

Explain the role of international trade in globalization.

Answer 6

International trade involves the exchange of goods and services between countries, which enhances economic interdependence and contributes to the globalization of markets.

Question 7

How does migration influence globalization?

Answer 7

Migration allows for the movement of people across borders, leading to cultural exchange, labor market integration, and the spread of ideas, all of which are essential aspects of globalization.

Question 8

What are new forms of transportation’s impact on globalization?

Answer 8

New forms of transportation improve the efficiency and speed of moving goods and people across the globe, thereby facilitating international trade and cultural exchange.

Question 9

Describe the flow of money in the context of globalization.

Answer 9

The flow of money refers to the movement of capital across borders for investment, trade, and other economic activities, which is crucial for the interconnectedness of global economies.

Question 10

How did economic ties between countries change after World War II?

Answer 10

Economic ties between countries strengthened through negotiated tax treaties, the abolition of tariffs, and the development of global corporations.

Question 11

Define the role of technology in globalization.

Answer 11

New technology allows international business to occur in real time, transforming the globe into one market.

Question 12

What impact has globalization had on the interdependence of nations?

Answer 12

Globalization has increased the interdependence of all nations, blurring political boundaries.

Question 13

Explain the significance of the United Nations in the context of globalization.

Answer 13

The United Nations played a crucial role in the establishment of globalization by fostering trade relations between countries after World War II.

Question 14

Identify the changes in trade relations that occurred post-World War II.

Answer 14

Post-World War II, trade relations saw the negotiation of tax treaties, the abolition of tariffs, and the rise of global corporations.

Question 15

How has globalization transformed the concept of markets?

Answer 15

Globalization has transformed the concept of markets by creating a single global market through real-time international business.

Question 16

Define a commodity.

Answer 16

A commodity is a good that is fully fungible, meaning the market does not distinguish between identical grades of the product regardless of who produced it.

Question 17

Describe the significance of gold as a commodity.

Answer 17

Gold is one of the best known commodities and has been valuable for thousands of years, making it a key asset in trading.

Question 17

Explain the concept of fungibility in relation to commodities.

Answer 17

Fungibility means that a commodity is interchangeable with other identical goods, and the market does not differentiate between them based on the producer.

Question 18

Describe the significance of commodity prices in the market.

Answer 18

Commodity prices are highly sensitive to world events and can indicate market trouble.

Question 18

Define commodities in the context of goods.

Answer 18

Commodities are the raw materials that many other goods are made with.

Question 19

How does the origin of a commodity, like wheat, affect its value to consumers?

Answer 19

The origin of a commodity does not typically matter to consumers; they often cannot determine where it was grown.

Question 20

Do commodities have a uniform quality regardless of their source?

Answer 20

Yes, commodities like wheat are generally considered uniform in quality, regardless of where they are grown.

Question 21

Describe the relationship between high commodity prices and supply and demand.

Answer 21

High commodity prices often indicate that there is too much demand for not enough supply, meaning more people want to buy a commodity than what is available.

Question 21

Explain why headlines about high commodity prices are important.

Answer 21

High commodity prices can signal various economic conditions and potential market troubles.

Question 22

How can a natural disaster affect commodity prices?

Answer 22

A natural disaster, like a flood, can cause a shortage of a commodity, such as wheat, leading to increased prices due to reduced supply.

Question 23

Define commodities in the context of market economics.

Answer 23

Commodities are basic goods used in commerce that are interchangeable with other goods of the same type, such as wheat or palladium.

Question 24

Why is it important to monitor commodity prices?

Answer 24

Monitoring commodity prices is important because they can indicate economic trends, such as supply shortages or increased consumer demand.

Question 24

Explain the significance of palladium in manufacturing.

Answer 24

Palladium is used in manufacturing electronics, and its demand can influence its market price based on supply availability.

Question 25

List examples of commodity goods

Answer 25

Corn
wheat
cocoa
cotton
sugar
soybeans
lumber
dairy products
Copper
palladium
silver
gold
cattle
pigs

Question 25

What is the main product Canada imports from Morocco?

Answer 25

Citrus
Mixed Mineral
Chemical Fertilizers
Non-Knit Women’s Suits

Question 26

Who were Canada’s first trading partners?

Answer 26

Before Canada gained independence it was Great Britain after America

Question 27

When did trade with Asia become important?

Answer 27

Canada started trading with Japan after World War 2

Question 28

Why is Mexican trade now important to Canada?

Answer 28

All Trades are duties and Tariffs free because of NAFTA/USMCA

Question 29

What is a duty or tariff?

Answer 29

Protect domestic industries: Duties make imported goods more expensive, encouraging consumers to buy locally produced products.
Generate government revenue: Tariffs provide a source of income for the government.

Control trade balance: By discouraging imports, tariffs can help reduce trade deficits and encourage local production.
Promote economic growth: Protecting emerging industries gives them time to grow without facing stiff competition from foreign companies.

Encourage local employment: By supporting domestic industries, tariffs help preserve or create jobs within the country.

Retaliation in trade disputes: Duties can be used as a tool in response to unfair trade practices or to retaliate against other countries’ tariffs.

Maintain national security: Tariffs can protect critical industries that are vital to a nation’s security, such as defense and technology sectors.

Question 30

Why do countries impose duties on imported products?

Answer 30

-A tax imposed by a government on imported or exported goods.
-Typically used to regulate trade by increasing the cost of imported goods.
-Encourages consumers to buy domestic products by making imports more expensive.
-Sometimes used to protect local industries from foreign competition.
Can generate revenue for the government.
-May be part of trade policies or agreements between countries.

Question 31

What are three emerging markets that Canadian businesses should know about?

Answer 31

• The middle east
  -Has traditionally centred on oil, but this commodity is not sustainable
  -United Arab Emirates (Dubai), Israel, and Egypt have established trading relationships with Canadian businesses that do not depend on oil
• Africa
  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

-India
- Cheap Labour
-Indian companies are aggressively expanding into international markets
-Workers are generally young and educated

Question 32

What is BRICS?

Answer 32

Brazil, Russia, India, China, South Africa

40% of the world population
Large, fast-growing economies

Significant influence on global affairs

18% of world economy in 2014 (combined GDP)