Unit 1

Question 1

Read history of Hudson Bay stuff..

Answer 1

https://classroom.google.com/c/NjQ3MDQ5ODY4NzY1/a/NjQ4MjcyMTk3ODI0/details

Question 2

Self-sufficiency

Answer 2

Is the ability to provide for all of your basic needs, such as food, clothing, shelter, and water without relying on anyone else.

Question 3

Interdependence

Answer 3

The reliance of two or more groups on the actions of one another to fulfill certain wants or needs. 👭👬👫👨‍🌾👩‍🏫

Question 4

What is business? explain domestic vs International business and example of each

Answer 4

Business: The manufacturing and/or sale of goods and/or services to satisfy the wants and needs of consumers to make a profit. 👨‍💼👩‍💼📊📆🗄️🕴️🗂️

Domestic Business: Is a business that makes most of its transactions within the borders of the country in which it is based. 🇨🇦
(Canadian tire..)

International Business: Business activities needed to create, ship and sell goods/services internationally form producer to consumer. (Toyota, ford) 🌍🌐🏹

Question 5

Domestic vs. foreign market

Answer 5

Domestic Market: all your customers live in the country where your business operates.

Foreign Market: all the customers in a country other than your own.

Question 6

5 ways a business can be considered an international business (examples)

Answer 6

1.Own a RETAIL or distribution 🛒🛍️outlet in another country.

2. Own a manufacturing 🏭plant in another country.
   (Timhortons)
3. Export 📤to businesses in another country.
4. Import ⤵️from businesses in another country.
5. Invest 💸🌍 in businesses in another country.

Question 7

4 reasons why international business is important to Canada

(I need a job to invest in innovation)

Answer 7

Meets our needs😋

Creates more jobs👷

Attracts investors💵🕴

Innovation & Diversity🧑‍💻

Question 8

Good video! Canadas trade history

Answer 8

https://youtu.be/dPmlUkUabPM

Question 9

Explain early Canadian trade

Answer 9

Canadian Indigenous people demonstrated some characteristics of trade as the Northern Tribes traded with the Southern Tribes, (pelt, food) As the Europeans (French and English) arrived and transportation developed, the cultures interacted and began to share goods and services with each other.
(clothes, pelt, ammunition)
It was so prosperous that settlers from France and England moved to Canada to establish colonies and trading outposts.
(Hudsons Bay co, North West Company)

Question 10

Early Trade

TRADE not early globalization!

Answer 10

-Over 3000 years ago!
-Each area had different goods and services to provide. (China traded silk and tea for spices from India. )
-As the Roman Empire grew so did trade as they conquered many lands

Question 11

Trade and Exploration

Answer 11

-During the 1500’s and 1600’s European exploration, settlement, expansion of trade markets and empire building occurred.
-Gold and silver trade created powerful empires
-Wars were fought over the rights to trading routes.

Question 12

World Trade Organization (WTO)

Answer 12

-WTO deals with the global rules of trade between nations

-Its main function is to ensure that trade flows as smoothly predictably and freely as possible

Question 13

Good video:How does trade work?

Answer 13

https://youtu.be/HfN8BnRJryQ

Question 14

6 reasons

Why do Canadian companies Trade?

Answer 14

Company growth 🌿
Entry into new markets 🎫
Expanded customer base 💃👽🕺🧟‍♀️👯‍♂️
Increased profits🤑
Access to inexpensive supplies 📇🛠️
Access to financing 🏦💶

Question 15

Import

Answer 15

Goods and services produced in one country and brought in to another country for sale.

https://www.ibisworld.com/canada/industry-trends/biggest-importing-industries/

Question 16

export

Answer 16

Goods and services produced in one country and sold to another country.

https://www.ibisworld.com/canada/industry-trends/biggest-exporting-industries/

Question 17

Balance of trade. a county can hv either:

Answer 17

The relationship between exports and imports.
A country can have either:
a trade surplus or
a trade deficit/shortage

Question 18

Trade surplus

Answer 18

Is when a country’s exports are greater than their imports.
Means you are selling more goods/services internationally.
Means that more jobs are being provided domestically which can lead to higher employment, income and spending.

Canada exported $450 billion of goods/services worldwide.
Canada imported $420 billion of goods/services worldwide.

TRADE SURPLUS OF $30 BILLION WORLDWIDE!!

Question 19

Trade deficit/shortage

Answer 19

Is when a country’s imports are greater than their exports.
You are not producing as much within your own country and you need to bring in goods/services from other countries.

Canada exported $9 billion of goods/services to Japan.
Canada imported $10 billion worth goods/services from Japan.

TRADE DEFICIT OF $1 BILLION WITH JAPAN!!

Question 20

Value added

Answer 20

Is the amount of worth that is added to a product as it is processed.
The difference between the cost of the raw materials and the cost of the finished goods.
Canada’s exports from primary industries lack value added!

ex.
Canadian lumber mill (product sells for $50, $0 value added.)
American furniture maker (product sells for $3k value added $2950)
Walmart product sells for $45k value added 15k)

Question 21

fundamental reason for international trade

Answer 21

Is to sell something that we don’t need or have a lot of and to buy something we do need!

Question 22

7 ADVANTAGES OF INTERNATIONAL TRADE (vile little minions just cooked five tomato’s)

Answer 22

1.𝐕𝐚𝐫𝐢𝐞𝐭𝐲 𝐨𝐟 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐬/𝐌𝐞𝐞𝐭𝐢𝐧𝐠 𝐨𝐮𝐫 𝐍𝐞𝐞𝐝𝐬 🥑🚗
Ability for Canadians to purchase products that we don’t produce.
(cars…avocados from mexico)

2.𝐋𝐨𝐰𝐞𝐫 𝐏𝐫𝐢𝐜𝐞𝐬 🏷️⬇️
Workers in many developing countries (China & India) are paid lower wages.
Those “savings” are passed on to the consumer.

𝟑. 𝐍𝐞𝐰 𝐌𝐚𝐫𝐤𝐞𝐭𝐬 🌅
Canada’s population is approximately 38 million
World population is almost at 8 billion!

𝟒. 𝐉𝐨𝐛 𝐂𝐫𝐞𝐚𝐭𝐢𝐨𝐧 👷‍♀️👮‍♂️👨‍🍳👩‍🔬
New markets = more demand = more jobs
Exports are critical to the Canadian economy (lululemon, ford, wheat, GM)

𝟓. 𝐂𝐮𝐥𝐭𝐮𝐫𝐚𝐥 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 🎼🎭🎨
International business fosters exchange of culture and ideas between countries and promotes diversity.
Through food, clothing, music (the arts) etc.
(jolibee,drake,weekend)

𝟔. 𝐅𝐨𝐫𝐞𝐢𝐠𝐧 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 (𝟐 𝐭𝐲𝐩𝐞𝐬)
1. Direct Investment 🏭🏣🏬🏢
Other countries can invest in offices, factories or warehouses ($75.5 billion in 2021).
Has to follow guidelines in The Investment Canada Act

2. Portfolio Investment 📈📉📊
   Purchase of stocks, bonds and other financial securities by Canadian firms
   (TSX)

𝟕. 𝐍𝐞𝐰 𝐓𝐞𝐜𝐡𝐧𝐨𝐥𝐨𝐠𝐲 𝐚𝐧𝐝 𝐏𝐫𝐨𝐜𝐞𝐬𝐬𝐞𝐬 ⚙️🚜🤖
-Machinery or materials to make better products, faster and cheaper.

-Canadian companies have the ability to research other companies and their technology

-Creates competitiveness and profitability.

Question 23

5 Disadvantages of International trade

Answer 23

𝟏. 𝐒𝐮𝐩𝐩𝐨𝐫𝐭 𝐨𝐟 𝐧𝐨𝐧-𝐝𝐞𝐦𝐨𝐜𝐫𝐚𝐭𝐢𝐜 𝐠𝐨𝐯𝐬
China 🇨🇳
Vietnam 🇻🇳
Cuba 🇨🇺
Communism, human rights issues

𝟐. 𝐋𝐎𝐒𝐒 𝐎𝐅 𝐂𝐀𝐍𝐀𝐃𝐈𝐀𝐍 𝐂𝐔𝐋𝐓𝐔𝐑𝐄/𝐈𝐃𝐄𝐍𝐓𝐈𝐓𝐘 🇨🇦🧑🍟🍁💂
Almost 90% of Canadians live less than 160 km from the border!
Culture is a major export of the USA.
Television programs
Magazines & books
Video games
Music
Movies
Online
These show American culture/history and not Canadian!
The CRTC (Canadian Radio-Television Telecommunications Commission) protects the Canadian radio and television industries (quotas).

𝟑. 𝐄𝐍𝐕𝐈𝐑𝐎𝐍𝐌𝐄𝐍𝐓𝐀𝐋 𝐈𝐒𝐒𝐔𝐄𝐒 🌺🌻🥀
-Canada has strong environmental rules and regulations.
-Other countries do not.
-Some companies will move their companies to a less regulated country to save costs.
-Some countries produce goods without concern to the damage it causes to the environment (Mexico, China).

𝟒. 𝐒𝐨𝐜𝐢𝐚𝐥 𝐖𝐞𝐥𝐟𝐚𝐫𝐞 𝐈𝐬𝐬𝐮𝐞𝐬 👩‍⚖️😷🧯🥽☢️
-Maintaining safety standards, minimum wages, worker’s compensation and health benefits cost businesses money.
-If a running shoe is made in a country where these issues are not met then the shoe can be sold for less in Canada and the company makes a higher profit.
-The down side to this is that substandard safety conditions exist in many countries in Mexico or child labour in India and China.

video: https://youtu.be/CCrUZuyZHyk

𝟓. 𝐈𝐍𝐂𝐑𝐄𝐀𝐒𝐄𝐃 𝐅𝐎𝐑𝐄𝐈𝐆𝐍 𝐎𝐖𝐍𝐄𝐑𝐒𝐇𝐈𝐏 𝐎𝐅 𝐂𝐎𝐌𝐏𝐀𝐍𝐈𝐄𝐒 𝐈𝐍 𝐂𝐀𝐍𝐀𝐃𝐀 ⚠️🌎😿🇨🇦

Only 1% of the 1.3 million corporations in Canada are foreign owned.
The 1% accounts for 30% of Canada’s business revenue!
Why is this a disadvantage?

Foreign companies have foreign loyalties; 🫡 can close down or not buy from Canadian suppliers.
R & D is done domestically for these companies and not in Canada.
Revenue leaves Canada to pay head office costs.
Economic destabilization; a recession in the USA leads to one in Canada.

(mcdonalds,apple,ikea)

Question 24

What is globalization?

Answer 24

Is the process whereby national/regional economies and cultures have become integrated through:
1. New global communication technologies
2. Foreign direct investment
3. International trade
4. Immigration
5. New forms of transportation
6. The flow of money

also integrated: sales, finance, Global monetary markets, Manufacturing

Question 25

History of globalization

Answer 25

-Historians view the expansion of the Roman Empire as an early form of globalization.(research more)
-Globalization began after WWII
Establishment of the United Nations & the fostering of trade nations.<—helping smaller countries
(GMOs more food…..)(research more) industrial revolution —> in England on late 1700s

Question 26

7 Positive effects of globalization (OLDBOII)

7

Answer 26

1. 𝙊𝙪𝙩𝙨𝙤𝙪𝙧𝙘𝙞𝙣𝙜
   -Use of outside resources (such as raw materials and labour) that were previously handled internally/domestically
   -Usually cheaper and can offer the customer lower prices
2. 𝙇𝙤𝙬𝙚𝙧 𝙋𝙧𝙞𝙘𝙚𝙨
   Increased competition from foreign firms causes domestic companies to decrease prices
3. 𝘿𝙚𝙘𝙧𝙚𝙖𝙨𝙚 𝙞𝙣 𝙋𝙤𝙫𝙚𝙧𝙩𝙮 in those countries —-> 4. 𝘽𝙚𝙩𝙩𝙚𝙧 𝙅𝙤𝙗𝙨 in our country
4. 𝙊𝙥𝙩𝙞𝙢𝙖𝙡 𝙐𝙨𝙚 𝙤𝙛 𝙍𝙚𝙨𝙤𝙪𝙧𝙘𝙚𝙨

6.𝙄𝙣𝙣𝙤𝙫𝙖𝙩𝙞𝙤𝙣
Businesses that operate internationally can exchange technology.
Open borders allows ideas to flow from one country to another

7.𝙄𝙣𝙘𝙧𝙚𝙖𝙨𝙚𝙙 𝘾𝙖𝙥𝙞𝙩𝙖𝙡 𝙁𝙡𝙤𝙬 (flow of money thru the countries !)

Question 27

10 Negative effects of globalization:

10

Answer 27

𝟏.𝐋𝐨𝐬𝐭 𝐉𝐨𝐛𝐬👷❌
Many Canadians have lost their jobs due to outsourcing (cheaper to hire overseas)

𝟐.𝐅𝐞𝐚𝐫 𝐨𝐟 𝐉𝐨𝐛 𝐋𝐨𝐬𝐬
😱
𝟑. 𝐋𝐨𝐬𝐬 𝐨𝐟 𝐂𝐚𝐧𝐚𝐝𝐢𝐚𝐧 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐯𝐢𝐭𝐲
Some Canadian companies will lose their comparative advantages to countries with cheaper labour
🇨🇦😓
𝟒. 𝐄𝐱𝐩𝐥𝐨𝐢𝐭𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐂𝐡𝐞𝐚𝐩 𝐋𝐚𝐛𝐨𝐮𝐫
👿💰
𝟓. 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞𝐝 𝐏𝐨𝐥𝐥𝐮𝐭𝐢𝐨𝐧
Companies can move their factories to countries with limited pollution laws (save costs)
🏭
𝟔.𝐒𝐚𝐟𝐞𝐭𝐲 𝐂𝐨𝐧𝐜𝐞𝐫𝐧𝐬
⚠
𝟕. 𝐒𝐩𝐫𝐞𝐚𝐝 𝐨𝐟 𝐃𝐢𝐬𝐞𝐚𝐬𝐞
Covid-19
☣
𝟖. 𝐈𝐧𝐜𝐫𝐞𝐚𝐬𝐞 𝐢𝐧 𝐈𝐧𝐜𝐨𝐦𝐞 𝐆𝐚𝐩
Gap between rich and poor is widening
Erosion of the middle class
⚖
𝟗. 𝐈𝐧𝐟𝐥𝐮𝐞𝐧𝐜𝐞 𝐨𝐟 𝐌𝐮𝐥𝐭𝐢𝐧𝐚𝐭𝐢𝐨𝐧𝐚𝐥
Corporations (MNCs) on Governments
Powerful MNCs can manipulate global politics (apple mcdonalds amazon)
👐🌍
𝟏𝟎. 𝐓𝐡𝐞 𝐞𝐧𝐭𝐢𝐫𝐞 𝐰𝐨𝐫𝐥𝐝 𝐦𝐚𝐲 𝐛𝐞 𝐚𝐟𝐟𝐞𝐜𝐭𝐞𝐝 𝐛𝐲 𝐚𝐧
𝐞𝐯𝐞𝐧𝐭 𝐭𝐡𝐚𝐭 𝐭𝐚𝐤𝐞𝐬 𝐩𝐥𝐚𝐜𝐞 𝐢𝐧 𝐨𝐧𝐞 𝐧𝐚𝐭𝐢𝐨𝐧.🧈
Recession (2008)
Price of oil increasing
Wars

Question 28

THE RISE OF POPULISM

Answer 28

An ideology with a concern for the “the common” citizen.
Promotes protectionism (restrict imports through tariffs, quotas etc.)
Goal is to boost domestic industry.
Rising sentiment in many countries (US, France, UK)

Question 29

globalization video

Answer 29

https://www.youtube.com/watch?v=vmyH2YFR2cw&authuser=2

Question 30

4 reasons

WHY DO COMPANIES EXPAND INTERNATIONALLY? (eat dont cut calories)

Answer 30

𝗘𝘅𝗽𝗮𝗻𝗱 𝗠𝗮𝗿𝗸𝗲𝘁𝘀 & 𝗜𝗻𝗰𝗿𝗲𝗮𝘀𝗲 𝗦𝗮𝗹𝗲𝘀
🌍Can lead to more profits
🌍Profits mean success for a business
𝟮. 𝗗𝗶𝘃𝗲𝗿𝘀𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻
💐In order to diversify a company’s product line they may choose to enter a specific international market.
💐Prevents companies from restricting their products or services to the domestic market.
𝟯. 𝗖𝗼𝗻𝘁𝗿𝗼𝗹𝗹𝗶𝗻𝗴 𝗘𝘅𝗽𝗲𝗻𝘀𝗲𝘀
💰Every business wants to have low expenses; so some companies will therefore enter the global arena to minimize their costs
💰Companies will examine the resources they need and where they can get them at the lowest price
💰Business might choose to take advantage of lower labor costs, better technology, natural resources, tax incentives
𝟰. 𝗖𝗼𝗺𝗽𝗲𝘁𝗶𝘁𝗶𝘃𝗲𝗻𝗲𝘀𝘀🥊
Many companies expand globally for defensive reasons - to protect themselves from competitors or potential competitors, or to gain advantage over them

Question 31

What are the 4 reasons governments set up trade barriers?

Answer 31

To protect local businesses
and jobs

Generate revenue

Protect citizens from harmful products

Question 32

define PROTECTIONISM

Answer 32

using barriers to trade to protect
domestic producers/industries from foreign competition.

Question 33

CURRENCY FLUCTUATIONS AND
EXCHANGE RATES (NOTES) explain currency fluctuations and exchange rate as well as 3 winners and 3 losers of a low Canadian dollar

Answer 33

Currency fluctuations:
-Are a barrier to international trade.
-Uncertainty in trying to price goods and services accurately.

Exchange Rate:
-Is the amount of currency in relation to the currency of another country.
(ex. dollar in Canada is 0.74 in US)

WINNERS OF A LOW CANADIAN DOLLAR:

𝐄𝐱𝐩𝐨𝐫𝐭𝐞𝐫𝐬:
-foreign businesses want to buy Canadian goods
-Canadian companies can sell more products cause they are cheaper
-Benefits Canada’s manufacturing sector

𝐂𝐚𝐧𝐚𝐝𝐢𝐚𝐧 𝐓𝐨𝐮𝐫𝐢𝐬𝐦:
foreign travelers visit Canada because their dollar buys more CAD dollars.
$63.3 Billion in revenue in 2021
$104.4 Billion in revenue in 2019

𝐂𝐚𝐧𝐚𝐝𝐢𝐚𝐧 𝐑𝐞𝐭𝐚𝐢𝐥
gain an edge because shopping in the United States in person or online is more expensive.

LOSERS OF A LOW CANADIAN DOLLAR:
𝐈𝐦𝐩𝐨𝐫𝐭𝐞𝐫𝐬
-more expensive to import and sell products in Canada.
-businesses that import expensive equipment, raw materials and technology have higher production costs
𝐂𝐚𝐧𝐚𝐝𝐢𝐚𝐧 𝐓𝐫𝐚𝐯𝐞𝐥𝐞𝐫𝐬
costs more to travel to the United States for business or pleasure
𝐌𝐚𝐣𝐨𝐫 𝐒𝐩𝐨𝐫𝐭𝐬 𝐓𝐞𝐚𝐦𝐬
pay their players in USD; more costly

Question 34

What is an exchange rate?
Which currency is worth more? American or Canadian?
floating exchange rate…
Factors that effect exchange rate..hard vs soft currency
speculating…

Answer 34

EXCHANGE RATE: 🤝 (u should watch a video about this)
It refers to the value of the Canadian dollar against the currencies of other countries. Among other things, it helps determine how much we pay for imported goods and services and how much we receive for what we export.
The exchange rate plays a particularly important role in the Canadian economy because compared with other countries, imports and exports (trade) are a relatively large part of Canada’s economy. Most of our trade is with the United States, which is why the value of our dollar against the U.S. dollar is especially important.

**CAD TO USD CHART:*🇺🇸🇨🇦https://www.xe.com/currencycharts/?from=CAD&to=USD&view=5Y
1 CAD = 0.736616 USD

FLOATING EXCHANGE RATE
Canada has a floating exchange rate. That means there is no set value for our currency compared with any other currency. The exchange rate is affected by the supply and demand for Canadian dollars in international exchange markets.
If demand exceeds supply, the value of the dollar will go up.
If the supply exceeds demand, its value will go down.

FACTORS AFFECTING THE EXCHANGE RATE
Several factors influence the supply of and demand for, Canadian dollars:
𝐈𝐧𝐟𝐥𝐚𝐭𝐢𝐨𝐧 𝐑𝐚𝐭𝐞 (the rate at which the prices of goods and services is rising over a period of time)
-A low inflation rate causes investors to prefer the Canadian dollar because of the stability of prices.
-A higher inflation rate (among other countries), investors are less likely to prefer to Canada because of the expectation that the value of the dollar will be eroded by inflation.

𝐈𝐧𝐭𝐞𝐫𝐞𝐬𝐭 𝐑𝐚𝐭𝐞 (is the price a borrower pays for the use of money they borrow from a lender)
If interest rates are higher in Canada than in other countries, investors may choose to invest in Canada, increasing demand for the dollar.

𝐔𝐧𝐞𝐦𝐩𝐥𝐨𝐲𝐦𝐞𝐧𝐭
The number of Canadians without jobs.
A low unemployment rate signals a stable, healthy economy, causing the CDN Dollar to rise

𝐆𝐫𝐨𝐬𝐬 𝐃𝐨𝐦𝐞𝐬𝐭𝐢𝐜 𝐏𝐫𝐨𝐝𝐮𝐜𝐭 (𝐆𝐃𝐏)
The value of all finished goods and services produced by a country over a specific time period.
A stable or rising GDP indicates a healthy economy, causing the CDN dollar to rise.

𝐓𝐞𝐫𝐦𝐬 𝐨𝐟 𝐓𝐫𝐚𝐝𝐞 (𝐭𝐫𝐚𝐝𝐞 𝐛𝐚𝐥𝐚𝐧𝐜𝐞)
The greater a country’s exports in comparison to its imports, the greater the demand for its currency.
Canada exports more than we import; there is a greater demand for our currency and the CDN dollar will rise.

𝐏𝐨𝐥𝐢𝐭𝐢𝐜𝐬
Political stability can affect the exchange rate.
If investors are worried about political tension or the threat of terrorism in a particular country, the demand for its currency decreases.

𝐏𝐬𝐲𝐜𝐡𝐨𝐥𝐨𝐠𝐢𝐜𝐚𝐥 𝐅𝐚𝐜𝐭𝐨𝐫𝐬
In times of international upheaval, the Swiss Franc is considered a refuge currency. The U.S. Dollar and the Euro are also seen as safe currencies.
𝗛𝗮𝗿𝗱 𝗖𝘂𝗿𝗿𝗲𝗻𝗰𝘆– easily converted to other currencies around the world (the U.S. dollar, the Euro, CDN dollar)
𝗦𝗼𝗳𝘁 𝗖𝘂𝗿𝗿𝗲𝗻𝗰𝘆 – not as easily converted (Chinese Yuan, Russian Ruble)

SPECULATING
-It involves buying, holding, or selling foreign currency in anticipation of its value changing.
-One way to overcome the barrier of currency exchange
-For example: if you were planning a trip to Florida in the winter, and you heard on the news that the CDN dollar was probably going to go down in the next month, you would purchase U.S. Dollars now in anticipation.

Question 35

read this article on competitive advantage(✿^‿^)!

Answer 35

https://www.investopedia.com/terms/c/competitive_advantage.asp

Question 36

What is a competitive advantage?

Answer 36

Is a product/service that a country or company is better at producing than its competitors.

The advantage can be based on:
technology
access to raw materials
marketing
management
quality
price
warranty

Question 37

Economic utility

Answer 37

product’s ability to satisfy the needs and wants of the customer
(◠‿◕)
Companies that achieve a competitive advantage manufacture products or provide services that have greater economic utility, or usefulness, than product or services supplied by their competitors

Question 38

Factors Affecting Canada’s Competitiveness

Answer 38

🪷Quality & quantity of natural resources
🪷Strength of the country’s currency and its exchange rate
🪷Infrastructure in the country
🪷Research & Development
🪷Workforce characteristics
🪷Societal characteristics
🪷Entrepreneurship
🪷Government involvement

Question 39

Tariffs

Answer 39

Are taxes or duties put on imported products or services.

They raise the cost of imported goods.

Canada has a free trade agreement with the United States and Mexico (CUSMA).

(read more on cusma and nafta..?)

see tariff chart example on slide 4 and 5
https://docs.google.com/presentation/d/1TnZBXuWSFyZ6FLy4Gzoz4GiRRjaoUErv4oe9Uwsv220/edit#slide=id.p4

Question 40

3 Winners of tariffs

Answer 40

1.Domestic governments
they collect the additional taxes

2.Local producers
their goods are more competitively priced

3.Local employees
they keep their jobs

Question 41

3 Losers of tariffs

Answer 41

1. Foreign Producers
   their goods are now more expensive
2. Consumers
   the price of the products go up and are forced to pay higher prices
3. Foreign employees
   the people working overseas lose out on opportunities

Question 42

Trade Quotas

Answer 42

Is a government imposed limit on the amount of product that can be imported in a certain time period.

Canadian Products Subject to U.S Quotas:
Beef
Cotton
Wool
Synthetic Fibres

Imported Products Subject to Canadian Quotas:
Agricultural products
Firearms
Steel
Textiles
Clothing

Question 43

Trade Embargos🇨🇺🇺🇸

Answer 43

◘Imposed by the government.
◘Bans trade on a specific product or with a specific country.
◘Often done to put pressure on foreign governments to change their policies or to protest human rights violations.

When Canada imposes a trade embargo:
🇨🇴There is an increased need on domestic products.
🍌May cause the price of a product to increase, because the supply has decreased.

WHEN ANOTHER COUNTRY IMPOSES A TRADE EMBARGO ON CANADA?
🌼There is a surplus domestic supply.
🌼Canadian companies need to find alternative markets to buy their products.
🌼If not, they need to decrease production or close factories.

Question 44

Foreign subsidiary

Answer 44

Parent company allows a branch of its company in another country to be run as an independent entity. Parent company sets targets to be met. allows local management to incorporate counties culture customs .Toyota.