TVO STUFF UNIT 1

Question 1

read over tvo lesson

Answer 1

https://tvolearn.com/products/bbb4m-international-business-fundamentals-online-course?goto=1-1

Question 2

US trading partner (TVO)

Answer 2

The United States is Canada’s number one trading partner. Canada exports close to $415 billion dollars worth of goods to the United States, which accounts for over 75% of Canada’s total exports worldwide. Canada is also very reliant on the United States as we import over $288 billion worth of goods from them. This accounts for over 51% of Canada’s worldwide imports. You can see that the international business relationship between Canada and the United States is very important for both countries.

Question 3

mexico trading partner (TVO)

Answer 3

Mexico has historically been an import business partner to Canada. We export over $7.8 billion (1.4%) and import over $35 billion (6.3%) worth of goods from this country.

Question 4

UK trading partner (TVO)

Answer 4

The United Kingdom is Canada’s third most important trading partner in terms of total exports. Canada exports over $17 billion worth of goods to this country, and that accounts for 3% of Canada’s total exports. Canada also imports close to $9 billion (1.6%) worth of goods from the United Kingdom.

Question 5

Germany trading partner (TVO)

Answer 5

Canada has had a long-standing trade relationship with Germany. Over $4 billion (0.76%) worth of goods is exported to Germany from Canada every year. Alternatively, Canada imports almost $18 billion worth of goods from this country. That accounts for just over 3% of Canada’s total imports.

Question 6

China trading partner (TVO)

Answer 6

China is Canada’s second largest trading partner in terms of total exports. Canada exports over $23 billion (4.3%) worth of goods to China but also imports around $71 billion worth of goods from this country. This accounts for almost 13% of Canada’s overall worldwide imports

Question 7

South Korea and Japan trading partners (TVO)

Answer 7

SK: South Korea is becoming one of Canada’s major trading partners. Canada exports approximately $5 billion (1%) worth of goods to South Korea and imports over $8 billion (1.6%) from this country

Japan:Japan is another of Canada’s important international business partners. Over 2% of Canada’s total exports go to, and over 3% of total imports come from, Japan. That accounts for almost $12 billion in exports and over $17 billion in imports

Question 8

What are the four advantages of international trade? (TVO)

Answer 8

𝗚𝗿𝗲𝗮𝘁𝗲𝗿 𝗮𝘃𝗮𝗶𝗹𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝗮𝗻𝗱 𝗹𝗼𝘄𝗲𝗿 𝗰𝗼𝘀𝘁 𝗼𝗳 𝗴𝗼𝗼𝗱𝘀goods around the world are more readily available. It also decreases the cost of goods as the supply is always readily available creating an abundance of price competition making products more affordable.

𝗔𝗰𝗰𝗲𝘀𝘀 𝘁𝗼 𝗻𝗲𝘄 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝗶𝗲𝘀International trade allows new technologies and inventions to come to Canada for example Apple IPhones.

𝗟𝗮𝗿𝗴𝗲𝗿 𝗺𝗮𝗿𝗸𝗲𝘁𝘀 𝗮𝗻𝗱 𝗺𝗼𝗿𝗲 𝗽𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲𝘀Companies can reach a broader market and generate higher revenues by selling internationally. When companies expand to new countries they also create jobs and infrastructure there.

𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲𝗱 𝗳𝗼𝗿𝗲𝗶𝗴𝗻 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁I grows a country’s wealth which translates into more opportunities and more choices for businesses and industries. A foreigner can invest in a country in one of two ways: portfolio investment, foreign direct investment

Question 9

Companies in which continent accounted for the second highest share of foreign direct investment in Canada in 2016? (TVO)

Answer 9

Europe with Switzerland and the Netherlands being the main sources of European investment in Canada in 2016

Question 10

When the Canadian dollar is trading at a low rate compared to the U.S. dollar, what is the advantage for U.S. production companies filming here?(TVO)

Answer 10

This means that the US dollar is worth more in Canada which provides substantial savings for u.S film production companies so filming is cheaper in Canada than the US.

Question 11

What are the two possible disadvantages of globalization and international trade?(TVO)

Answer 11

𝟏. 𝐢𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐝 𝐟𝐨𝐫𝐞𝐢𝐠𝐧 𝐨𝐰𝐧𝐞𝐫𝐬𝐡𝐢𝐩:
𝗿𝗲𝗱𝘂𝗰𝗲𝗱 𝗲𝘅𝗽𝗼𝗿𝘁𝘀 (a company owned/purchased by a foreign investor generally doesn’t look to export–done by the parent company in the home country.
𝗥𝗲𝗱𝘂𝗰𝗲𝗱 𝗿𝗲𝘃𝗲𝗻𝘂𝗲𝘀A lot of revenue will be filtered back to the parent company in the home country.
Restricted loyalty to Canada for example an American company might close offices, retail locations, manufacturing plants, and lay off workers Canada before their home country

2. 𝑬𝒓𝒐𝒔𝒊𝒐𝒏 𝒐𝒇 𝒄𝒖𝒍𝒕𝒖𝒓𝒆:
   Opponents of globalization often argue that international trade undermines the world’s rich traditional and unique cultures, languages, and values. They say that globalization imposes a pervasive western-style culture tainted by the excesses of the West: consumerism and materialism.

Question 12

Are the benefits of international trade worth the risks? Why or why not?(TVO)

Answer 12

Yes they are definitely worth the risks as international trade provides us with amazing products from other countries that are innovative and useful. It also creates jobs and increases a country’s wealth. I think countries can minimize the risks by balancing their imports and exports better.

Question 13

what is sears purchase of eatons considered?(TVO)

Answer 13

company aquisition

Question 14

canadas most important trading partner(TVO)

Answer 14

US

Question 15

Responsible for bringing North American products,restaurents, and brands to other parts of the world(TVO)

Answer 15

Globalization

Question 16

Has positive and negative outcomes for Canada(TVO)

Answer 16

increased foreign ownership

Question 17

An individual or corporation of another country purchases stocks or bonds issued by domestic firms or governments(TVO)

Answer 17

portfolio investment

Question 18

Advantage of increased international trade(TVO)

Answer 18

Access to new technology

Question 19

Canada’s second largest direct foreign investor(TVO)

Answer 19

UK

Question 20

define Business cycle. Explain the 4 stages

Answer 20

recurring periods of increased and decreased economic activity, or expansions and contractions. 4 stages:
𝗥𝗲𝗰𝗲𝘀𝘀𝗶𝗼𝗻
Demand starts decreasing, businesses lower the production of goods and/or services, and jobs become scarce.
𝗧𝗿𝗼𝘂𝗴𝗵
Economic activity is at its lowest level
𝗘𝘅𝗽𝗮𝗻𝘀𝗶𝗼𝗻 (𝗿𝗲𝗰𝗼𝘃𝗲𝗿𝘆)
Jobs begin to come back, demand for goods and services increases, confidence in the economy is back.
𝗣𝗲𝗮𝗸
Economic activity is its higher

Question 21

Boycott

Answer 21

act of voluntarily abstaining from using, buying, or dealing with a person, organization, or country as an expression of protest, usually for political reasons.

ᴵⁿ ᵃⁿ ᶦⁿᵗᵉʳⁿᵃᵗᶦᵒⁿᵃˡ ᵇᵘˢᶦⁿᵉˢˢ ᶜᵒⁿᵗᵉˣᵗ, ᵗʰᶦˢ ᵘˢᵘᵃˡˡʸ ᵐᵉᵃⁿˢ ᵗʰᵃᵗ ᵃ ˡᵃʳᵍᵉ ᵍʳᵒᵘᵖ ᵒᶠ ᶜᵒⁿˢᵘᵐᵉʳˢ ᵒʳ ᵃᶜᵗᶦᵛᶦˢᵗ ᵍʳᵒᵘᵖˢ ᵉⁿᶜᵒᵘʳᵃᵍᵉ ᵗʰᵉ ᵃᵇˢᵗᶦⁿᵉⁿᶜᵉ ᵒᶠ ᵃⁿ ᶦⁿᵗᵉʳⁿᵃᵗᶦᵒⁿᵃˡ ᶜᵒᵐᵖᵃⁿʸ’ˢ ᵖʳᵒᵈᵘᶜᵗˢ ᶠᵒʳ ᵉᵗʰᶦᶜᵃˡ ʳᵉᵃˢᵒⁿˢ.

Question 22

Customs

Answer 22

an authority or agency responsible for:
Collecting tax (for the gov) on imported and exported goods.
Controlling the flow of goods, including plants, animals, and hazardous items, in and out of a country.
⁽ᵀʰᵉ ᶜᵃⁿᵃᵈᵃ ᴮᵒʳᵈᵉʳ ˢᵉʳᵛᶦᶜᵉˢ ᴬᵍᵉⁿᶜʸ ᶦˢ ᵗʰᵉ ᶠᵉᵈᵉʳᵃˡ ᵍᵒᵛᵉʳⁿᵐᵉⁿᵗ ᵃᵘᵗʰᵒʳᶦᵗʸ ᶦⁿ ᶜᵃⁿᵃᵈᵃ ʳᵉˢᵖᵒⁿˢᶦᵇˡᵉ ᶠᵒʳ ˢᵃᶠᵉᵍᵘᵃʳᵈᶦⁿᵍ ᵃⁿᵈ ᵖʳᵒᵗᵉᶜᵗᶦⁿᵍ ᵒᵘʳ ᶠᵉᵈᵉʳᵃˡ ᵇᵒʳᵈᵉʳˢ.⁾

Question 23

Currency Devaluation

Answer 23

a lowering of the value of a nation’s currency. This is done by the country’s policy-makers: the government.
ᶠᵒʳ ᵉˣᵃᵐᵖˡᵉ, ᶦᶠ ᵗʰᵉ ᴿᵘˢˢᶦᵃⁿ ᵍᵒᵛᵉʳⁿᵐᵉⁿᵗ ᶜʰᵃⁿᵍᵉˢ ᵗʰᵉ ᵉˣᶜʰᵃⁿᵍᵉ ʳᵃᵗᵉ ᶠʳᵒᵐ ¹⁰⁰ ʳᵘᵇˡᵉˢ ⁼ $¹ ᵗᵒ ¹⁵⁰ ʳᵘᵇˡᵉˢ ⁼ $¹, ᵗʰᵉⁿ ᵗʰᵉ ʳᵘᵇˡᵉ ʰᵃˢ ᵇᵉᵉⁿ ᵈᵉᵛᵃˡᵘᵉᵈ

Question 24

Gateway city

Answer 24

a city that is used as the entry and departure point for international shipments and travel. Generally, they are major gateways to and from Canada and have large port facilities.

Question 25

Economies of scale

Answer 25

when more products are made in one factory or place with the same overhead costs and labour as making fewer products. Each unit gets cheaper to make and a higher profit can be gained.

Question 26

GDP

Answer 26

Total value of all goods and services produced within a country in a given period of time.

Question 27

Monopoly

Answer 27

one business is the only supplier of a good or service. For instance, if Dell was the only supplier of computers in an economy, they would hold a monopoly on the computer market.
(illegal in canada, no competition is a poor situation)

Question 28

Protectionism

Answer 28

protecting domestic industries from foreign competition, often by taxing imported goods.
(ex. Canada imposes a 15% tariff(tax) on cars imported to canada so canadians pay more for vehicles made in US)

Question 29

Rationalization

Answer 29

any attempt to increase a business’s effectiveness or overall efficiency. The tactics used include downsizing, cutbacks, or relocating to countries with cheaper labour costs.

Question 30

Explain the difference between licensing agreements and franchising. Provide one example of each.

Answer 30

Franchising is when individuals and companies called franchisees open their own branches of a corporation in exchange for fees and shared profits with the corporation. They have to follow certain guidelines and procedures in their franchise agreement to ensure consistency.

Licensing on the other hand is when a licensing agreement is signed to allow others to use another company’s intellectual property such as name, logo,image, or slogan. A licensor is the owner of the intellectual property and a licensee is the person granted to use it.

Question 31

Complete these fun mini-games🎮

Answer 31

https://courseware-openhouse.ilc.org/bbb4m_html/ilo/business_types/index.html

https://courseware-openhouse.ilc.org/bbb4m_html/ilo/snowman/index.html

Question 32

When a country doesn’t allow a certain cosmetic manufacturers products 2 b imported bc they test on animals

Answer 32

Boycott

Question 33

Princess Primagonias pizzaria teaches their employees to make pizza mo pizzas in the same am of time

Answer 33

economies of scale

Question 34

In 1 yr a country imports 30 bil & exports 32 bil

Answer 34

trade surplus

Question 35

Total value of all goods & services produces in ireland was 181.9 bil 🇮🇪🍀

Answer 35

GDP

Question 36

The Chinese GOV taxes wheat products imported to China from Canada

Answer 36

Protectionism

Question 37

Some economists suggest that Greece should return to the drahma instead of euro, so that it can reduce the overall value of the currency

Answer 37

currency devaluation

Question 38

The economy is strongest w low unemployment rate (element of bus cycle)

Answer 38

peak element of business cycle

Question 39

Demand for goods and services r decreasing and so are jobs

Answer 39

Recession

Question 40

There is only 1 manufacturer & supplier of sporting equipment in a certain company

Answer 40

Monopoly

Question 41

In 1 yr a countrys total imports is 67 bil. Total exports 50 bil in same period.

Answer 41

Trade deficit

Question 42

How would you describe the scale of trade around the world? Which countries and/or regions appear to be most heavily involved in international trade?

Answer 42

Answers in phone pics (biz folder)

Question 43

Great video: International trade explained. Identify four factors in the video that hv led to an increase in global trade

Answer 43

https://youtu.be/HfN8BnRJryQ

-Trade agreements such as the GATT (general agreements on tariff and trades) lowering trade barriers
-Advances in advances in technology and travel
-specialization
-one more..

Question 44

Term matching game–>Phone pics

Answer 44

:>🌸

Question 45

Video on comparative advantage

Answer 45

https://vimeo.com/336862365

Question 46

A country’s ability to produce a particular good or service at a lower opportunity cost than its trade partners is referred to as _____.

Answer 46

comparative advantage

Question 47

Factors that affect how much trade occurs btwn countries

Answer 47

-political climate
-sizes of countries
-transport cost
-exchange rates

Question 48

explain how comparative advantage influences global trade.

Answer 48

………………….

Question 49

How do you think comparative advantage has influenced which goods are produced in the U.S.? Be sure to consider costs, resources, and labor.

Answer 49

phone pics :>

Question 50

pls read this

Answer 50

https://www.thebalancemoney.com/free-trade-agreement-pros-and-cons-3305845

Question 51

explain globalization.say at least 1 positive and 1 negative consequence. say 2 organisations that address global issues

Answer 51

phone pics!!
1. World trade organization (WTO)
2. United Nations (UN)

Question 52

how has Globalization has significantly influenced the U.S. pharmaceutical supply chain

Answer 52

Globalization has significantly influenced the U.S. pharmaceutical supply chain, notably through the overseas relocation of manufacturing, leading to a reliance on foreign-produced medicines. In this diagram, the medicine was produced in Turkey, China, India, and Germany. This globalization has created a complex supply chain involving various intermediaries and raised concerns about quality control and supply chain resilience. Efforts to harmonize regulatory standards globally have emerged, impacting the approval process for medicines. While globalization has widened access to medicines, it has also sparked debates over the safety and quality of imported drugs, highlighting the dual nature of its impact on the U.S. medicine market.

Question 53

using this video: https://youtu.be/BiSYoeqb_VY explain how innovations in shipping and transport hv affected the manufacturing of common products such as a tshirt

Answer 53

Innovations in shipping and transportation have had a profound impact on the manufacturing of common products like t-shirts. Factory equipment has become so advanced that most of a t-shirt can be made without touching the human hand making it faster and cheaper to produce. Shipping can be done by ship, train and truck, making it easier to produce t-shirts in other countries and bring them to us, making the clothing cheaper which boosts consumption and manufacturing.

Question 54

using the example of the avocado craze, explain the benefits and drawbacks of globalization, particularly trade agreements on 1. American consumers 2. American farmers 3. Mexican farmers

Answer 54

American Consumers:

Benefits: Globalization and trade agreements have increased the availability of avocados in the U.S., providing consumers with a wider variety of produce year-round. This has contributed to healthier eating habits and culinary diversity.
Drawbacks: Increased avocado consumption has raised concerns about environmental impacts, as well as issues related to fair trade and labor practices in avocado-producing countries.
American Farmers:

Benefits: Some American farmers have benefited from the increased demand for avocados by expanding their operations or diversifying their crops. Additionally, trade agreements may provide them with access to new markets for their produce.
Drawbacks: The influx of cheaper imported avocados, particularly from Mexico, can create competition for American farmers, potentially leading to lower prices and profitability for domestic producers.
Mexican Farmers:

Benefits: Mexican farmers have significantly benefited from the avocado craze, as Mexico is one of the largest exporters of avocados to the U.S. Increased avocado production has created jobs and economic opportunities for farmers and their communities.
Drawbacks: There are concerns about the environmental impact of avocado farming in Mexico, particularly regarding deforestation and water usage. Additionally, some Mexican farmers may face challenges related to fair trade practices and market access.
Overall, while globalization and trade agreements have brought benefits such as increased access to avocados and economic opportunities for farmers, they have also raised important issues related to sustainability, fair trade, and competition that need to be carefully considered and addressed.

Question 55

communication innovations–>phone pics..(idk if this will B on the test lool)

Answer 55

(´；ω；｀)

Question 56

read this? globalization https://world101.cfr.org/global-era-issues/globalization

Answer 56

(╯︵╰,)

Question 57

Why would Hyundai have a manufacturing plant in Alabama?

Answer 57

Market Access: The plant allows Hyundai to access the lucrative American market more efficiently by reducing shipping costs and delivery times. Producing vehicles locally also helps Hyundai cater to the specific needs and preferences of American consumers.

Cost Efficiency: Manufacturing in Alabama provides Hyundai with cost advantages, including lower labor costs compared to South Korea and proximity to suppliers, which reduces transportation costs.

Trade Agreements: The plant’s location in the U.S. allows Hyundai to benefit from trade agreements like the North American Free Trade Agreement (NAFTA, now USMCA) or the South Korea-U.S. Free Trade Agreement, which can reduce tariffs and facilitate smoother trade operations.

Strategic Positioning: Having a manufacturing plant in the U.S. enhances Hyundai’s competitiveness against other automakers by positioning itself as a local manufacturer, which can appeal to American consumers and potentially mitigate risks related to trade disputes or fluctuations in exchange rates.

Government Incentives: State and local governments often provide incentives such as tax breaks, grants, or infrastructure improvements to attract foreign investment and create jobs. Hyundai may have received similar incentives to establish its plant in Alabama.

Question 58

read this! Foreign investment 101

Answer 58

https://world101.cfr.org/global-era-issues/trade/foreign-investment-101

Question 59

Questions about FDI
1. term refers to a company building a factory or a company buying another company across a border?
2. reason for FDI ?
3. top FDI recipient in 2017?
4. True or False: Trade and FDI are similar in that both are governed by the WTO.
5.explian the regulation of FDI

Answer 59

1. Foreign direct investment
2. Evade tariffs
   Reduce tax burden
   Gain proximity to a marke
3. US
   4.false
4. There is no international organization regulating FDI; FDI rules are worked into different trade agreements

Question 60

Briefly explain how each factor influences a company’s decision to either move or buy another company abroad? 1.Market access 2. Tariffs 3.Corporate tax rates

Answer 60

Market Access: Companies consider market access when deciding whether to move or buy another company abroad. Moving to a new location can provide better access to a target market, while acquiring a company already established in that market can offer immediate access to customers and distribution channels.

Tariffs: Tariffs can significantly impact a company’s decision to move or buy abroad. High tariffs on imported goods may incentivize a company to move production closer to the target market to avoid these costs. Alternatively, acquiring a company already operating in the target market can help bypass tariffs by producing locally.

Corporate Tax Rates: Corporate tax rates influence decisions on moving or acquiring a company abroad. Low tax rates in a foreign country may incentivize a company to move its operations there to benefit from tax savings. Acquiring a company in a low-tax jurisdiction can also provide tax advantages through restructuring or merging operations.

Question 61

Considering what you have learned, how does foreign investment relate to international trade? What makes foreign investments more difficult to regulate than trade?

Answer 61

SUMMARIZED: Foreign investment and international trade are closely related, involving the movement of goods, services, and capital across borders. However, foreign investments are more difficult to regulate than trade due to their complexity, long-term nature, involvement of diverse actors, and the complex legal and regulatory frameworks that govern them.

UN-SUMMARIZED VERSION
Foreign investment and international trade are closely related, as both involve the movement of goods, services, and capital across borders. Foreign investment refers to the acquisition of assets in another country, such as buying stocks, establishing a subsidiary, or building a manufacturing plant. International trade, on the other hand, involves the buying and selling of goods and services between countries.

Foreign investments are more difficult to regulate than trade for several reasons:

Complexity: Foreign investments often involve a wide range of transactions and activities, making them more complex to regulate compared to trade in goods and services, which can be more standardized.

Long-term Commitment: Foreign investments typically involve a long-term commitment to a country, such as establishing a production facility or acquiring a local company. This makes it challenging to regulate compared to trade, which can be more easily adjusted based on market conditions.

Variety of Actors: Foreign investments can involve a variety of actors, including multinational corporations, sovereign wealth funds, and individual investors. Regulating these diverse actors and their activities can be more challenging than regulating trade, which is often conducted by businesses.

Legal and Regulatory Frameworks: Foreign investments are subject to a complex web of legal and regulatory frameworks, including international agreements, bilateral investment treaties, and domestic laws. This complexity can make it difficult to establish and enforce regulations compared to trade, which is often governed by more straightforward rules and agreements.

Overall, foreign investments are more difficult to regulate than trade due to their complexity, long-term nature, involvement of diverse actors, and the complex legal and regulatory frameworks that govern them.