Thinking/Communication

Question 1

how do currency fluctuations in Canadian dollar impact the tourism industry? Support your answer with examples (4 marks)

Answer 1

cost of travel – strong Canadian dollar makes travel to Canada expensive for foreign tourists example – a stronger Canadian against the US dollar increases expenses for American tourist in Canada

Competitiveness in the global market.– Weaker Canadian dollar enhances Canada‘s competitiveness attracting more international tourists example a weaker Canadian dollar against the euro mixed Canada, more appealing for European tourists

Domestic tourism – weaker. Canadian dollar may encourage Canadians to explore their own country boosting domestic tourism example a depreciated Canadian dollar compared to the British pound. May prompt Canadian to vacation within Canada

Impact on tourism businesses – currency fluctuations affect the cost structure of tourism businesses, impacting prices, and overall financial dynamics. Example a stronger Canadian dollar reduces cost for businesses rely on imports, while a weaker dollar may increase costs. 

Question 2

what is the difference between globalization and international business support your answer with an example for each (4 marks)

Answer 2

globalization – definition – globalization involves global, interconnectedness, extending beyond business to include economies, cultures, and societies – scope – encompasses a wide range of global aspects, including economic, cultural, and technological spheres. Example – multinational corporations, exemplify, globalization, with companies, like McDonald’s, and Apple operating cross borders.
impact – leads to increase economic, interdependence, cultural exchange, and sharing of technological advancements globally

International business – definition – international business focusses on commercial transactions between entities from different countries, emphasizing cross border, exchange of good services and capital – scope – primarily concerns, business operations in a global context, involving trade investment, etc. example Toyota engages in international business by manufacturing selling, callers, globally – impact contributes to economic growth, job, creation, and technology transfer

Question 3

List two barriers to trade for each barrier describe how it works and explain why a country might choose to implement the barrier

Answer 3

Tariffs – how it works – tariffs are taxes on imported goods increasing their cost for domestic consumers. This protectionist measure aims to shield domestic industries and generate government revenue – why implemented – protect domestic industries, and generate revenue.

Non-tariff barriers quotas – how it works – quotas limit the quantity of specific, imported goods, controlling the volume allowed into the domestic market irrespective of demand – implemented, protect, domestic industries, strategic trade policy