U1 Aspects of International Business

Question 1

Goods

Answer 1

Items that can be seen and touched

Question 2

Services

Answer 2

Activities that are performed in exchange for fees

Question 3

International business

Answer 3

encompasses all business activities needed to create, ship, and sell goods and services across national borders

Question 4

Exporting

Answer 4

Companies in one country satisfying needs & wants of another country by selling their product

Question 5

Exporting Steps

Answer 5

• Find potential business opportunities
• Meet the needs of business partners/customers
• Agree on sales terms
• Provide the product
• Complete the transaction

Question 6

Challenges of Exporting

Answer 6

• Establishing a company presence
• Developing production capacity
• Coping with costs of doing business in another country
• Understanding the way business is done in that country

Question 7

Importing

Answer 7

Companies bringing in products to satisfy the consumers in their own country

Question 8

Importing Steps

Answer 8

• Make sure that there is demand for the product
• Contact foreign suppliers
• Finalize the purchase agreement
• Check the order when it arrives, to ensure it meets the standards of your country and company

Question 9

Trade Missions

Answer 9

• The government of Canada introduced “Team Canada” Trade Missions to expand our global reach.
• A combination of high-level government officials (e.g. Prime Minister, Trade Minister) accompany business executives (CEOs, VPs) on trips to foreign nations, in attempts to secure new business for Canadian companies
• These missions have been extremely effective in expanding Canadian trade partnerships