Introduction to International Business Flashcards
What is business?
The manufacturing or the sale of goods and services to satisfy consumer wants and needs in order to make profit.
What is a domestic business?
A commercial entity that conducts transactions within the borders of its home nation
What is international
trade?
The economic system of transactions done by businesses located in different countries.
How do countries participate in international business?
- Own a manufacturing plant in another country
- Invest in businesses in other countries
-Export to businesses in other countries
-Import from businesses in other countries
-Own a retail or distribution outlet in other countries
What is a transaction?
An exchange of things of value
What makes countries trading partner?
The countries having a business relationship with one another
Examples of international business
companies
government organizations
non-profitable businesses
What does the primary sector consist of?
The extraction and processing of all raw materials, e.g fishing, mining, forestry, agriculture, and hunting.
What does the secondary sector consist of?
Consists of primary manufacturing and secondary manufacturing,e.g consumer and capital goods.
What does the tetiary sector consist of?
It provides services to both sectors, e.g banking, transport, warehousing.
What is trade?
The action of buying and selling goods and services
European trade
- Trade grew quickly after permanent settlements were established in Canada in year 1700s
-Demand for raw materials grew where manufacturing took place
-England defeated France in seven year’s war which led to Canada’s reliance on England for finsihed goods.
United States trade
-Canada supplied raw materials that were needed in America
-Invention of steam engine and cotton gin helped rapid growth of American industry
-United states became Canada’s largest trading partner
Asian trade
- Canada began trading with Japan after WWII
-Japan became known for high-quality electronics and automobiles
-Chinese-made products are popular with North American retailers
What is globalization?
The process whereby national or regional economies and cultures have become integrated through flow of money, migration, international trade ant etc.
