Unit 1 Flashcards
Read history of Hudson Bay stuff..
https://classroom.google.com/c/NjQ3MDQ5ODY4NzY1/a/NjQ4MjcyMTk3ODI0/details
Self-sufficiency
Is the ability to provide for all of your basic needs, such as food, clothing, shelter, and water without relying on anyone else.
Interdependence
The reliance of two or more groups on the actions of one another to fulfill certain wants or needs. ๐ญ๐ฌ๐ซ๐จโ๐พ๐ฉโ๐ซ
What is business? explain domestic vs International business and example of each
Business: The manufacturing and/or sale of goods and/or services to satisfy the wants and needs of consumers to make a profit. ๐จโ๐ผ๐ฉโ๐ผ๐๐๐๏ธ๐ด๏ธ๐๏ธ
Domestic Business: Is a business that makes most of its transactions within the borders of the country in which it is based. ๐จ๐ฆ
(Canadian tire..)
International Business: Business activities needed to create, ship and sell goods/services internationally form producer to consumer. (Toyota, ford) ๐๐๐น
Domestic vs. foreign market
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.
5 ways a business can be considered an international business (examples)
1.Own a RETAIL or distribution ๐๐๏ธoutlet in another country.
- Own a manufacturing ๐ญplant in another country.
(Timhortons) - Export ๐คto businesses in another country.
- Import โคต๏ธfrom businesses in another country.
- Invest ๐ธ๐ in businesses in another country.
4 reasons why international business is important to Canada
(I need a job to invest in innovation)
Meets our needs๐
Creates more jobs๐ท
Attracts investors๐ต๐ด
Innovation & Diversity๐งโ๐ป
Good video! Canadas trade history
https://youtu.be/dPmlUkUabPM
Explain early Canadian trade
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)
Early Trade
TRADE not early globalization!
-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
Trade and Exploration
-During the 1500โs and 1600โs 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.
World Trade Organization (WTO)
-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
Good video:How does trade work?
https://youtu.be/HfN8BnRJryQ
6 reasons
Why do Canadian companies Trade?
Company growth ๐ฟ
Entry into new markets ๐ซ
Expanded customer base ๐๐ฝ๐บ๐งโโ๏ธ๐ฏโโ๏ธ
Increased profits๐ค
Access to inexpensive supplies ๐๐ ๏ธ
Access to financing ๐ฆ๐ถ
Import
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/
export
Goods and services produced in one country and sold to another country.
https://www.ibisworld.com/canada/industry-trends/biggest-exporting-industries/
Balance of trade. a county can hv either:
The relationship between exports and imports.
A country can have either:
a trade surplus or
a trade deficit/shortage
Trade surplus
Is when a countryโs 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!!
Trade deficit/shortage
Is when a countryโs 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!!
Value added
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.
Canadaโs 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)
fundamental reason for international trade
Is to sell something that we donโt need or have a lot of and to buy something we do need!
7 ADVANTAGES OF INTERNATIONAL TRADE (vile little minions just cooked five tomatoโs)
1.๐๐๐ซ๐ข๐๐ญ๐ฒ ๐จ๐ ๐๐ซ๐จ๐๐ฎ๐๐ญ๐ฌ/๐๐๐๐ญ๐ข๐ง๐ ๐จ๐ฎ๐ซ ๐๐๐๐๐ฌ ๐ฅ๐
Ability for Canadians to purchase products that we donโt produce.
(carsโฆavocados from mexico)
2.๐๐จ๐ฐ๐๐ซ ๐๐ซ๐ข๐๐๐ฌ ๐ท๏ธโฌ๏ธ
Workers in many developing countries (China & India) are paid lower wages.
Those โsavingsโ are passed on to the consumer.
๐. ๐๐๐ฐ ๐๐๐ซ๐ค๐๐ญ๐ฌ ๐
Canadaโs population is approximately 38 million
World population is almost at 8 billion!
๐. ๐๐จ๐ ๐๐ซ๐๐๐ญ๐ข๐จ๐ง ๐ทโโ๏ธ๐ฎโโ๏ธ๐จโ๐ณ๐ฉโ๐ฌ
New markets = more demand = more jobs
Exports are critical to the Canadian economy (lululemon, ford, wheat, GM)
๐. ๐๐ฎ๐ฅ๐ญ๐ฎ๐ซ๐๐ฅ ๐๐๐ฏ๐๐ฅ๐จ๐ฉ๐ฆ๐๐ง๐ญ ๐ผ๐ญ๐จ
International business fosters exchange of culture and ideas between countries and promotes diversity.
Through food, clothing, music (the arts) etc.
(jolibee,drake,weekend)
๐. ๐
๐จ๐ซ๐๐ข๐ ๐ง ๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ (๐ ๐ญ๐ฒ๐ฉ๐๐ฌ)
1. Direct Investment ๐ญ๐ฃ๐ฌ๐ข
Other countries can invest in offices, factories or warehouses ($75.5 billion in 2021).
Has to follow guidelines in The Investment Canada Act
-
Portfolio Investment ๐๐๐
Purchase of stocks, bonds and other financial securities by Canadian firms
(TSX)
๐. ๐๐๐ฐ ๐๐๐๐ก๐ง๐จ๐ฅ๐จ๐ ๐ฒ ๐๐ง๐ ๐๐ซ๐จ๐๐๐ฌ๐ฌ๐๐ฌ โ๏ธ๐๐ค
-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.
5 Disadvantages of International trade
๐. ๐๐ฎ๐ฉ๐ฉ๐จ๐ซ๐ญ ๐จ๐ ๐ง๐จ๐ง-๐๐๐ฆ๐จ๐๐ซ๐๐ญ๐ข๐ ๐ ๐จ๐ฏ๐ฌ
China ๐จ๐ณ
Vietnam ๐ป๐ณ
Cuba ๐จ๐บ
Communism, human rights issues
๐. ๐๐๐๐ ๐๐
๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐๐/๐๐๐๐๐๐๐๐ ๐จ๐ฆ๐ง๐๐๐
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).
๐. ๐๐๐๐๐๐๐๐๐๐๐๐๐ ๐๐๐๐๐๐ ๐บ๐ป๐ฅ
-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).
๐. ๐๐จ๐๐ข๐๐ฅ ๐๐๐ฅ๐๐๐ซ๐ ๐๐ฌ๐ฌ๐ฎ๐๐ฌ ๐ฉโโ๏ธ๐ท๐งฏ๐ฅฝโข๏ธ
-Maintaining safety standards, minimum wages, workerโs 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
๐. ๐๐๐๐๐๐๐๐๐ ๐ ๐๐๐๐๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐๐๐๐๐ ๐๐ ๐๐๐๐๐๐ โ ๏ธ๐๐ฟ๐จ๐ฆ
Only 1% of the 1.3 million corporations in Canada are foreign owned.
The 1% accounts for 30% of Canadaโs business revenue!
Why is this a disadvantage?
Foreign companies have foreign loyalties; ๐ซก 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)
What is globalization?
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
History of globalization
-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.<โhelping smaller countries
(GMOs more foodโฆ..)(research more) industrial revolution โ> in England on late 1700s
7 Positive effects of globalization (OLDBOII)
7
- ๐๐ช๐ฉ๐จ๐ค๐ช๐ง๐๐๐ฃ๐
-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 - ๐๐ค๐ฌ๐๐ง ๐๐ง๐๐๐๐จ
Increased competition from foreign firms causes domestic companies to decrease prices - ๐ฟ๐๐๐ง๐๐๐จ๐ ๐๐ฃ ๐๐ค๐ซ๐๐ง๐ฉ๐ฎ in those countries โ-> 4. ๐ฝ๐๐ฉ๐ฉ๐๐ง ๐ ๐ค๐๐จ in our country
- ๐๐ฅ๐ฉ๐๐ข๐๐ก ๐๐จ๐ ๐ค๐ ๐๐๐จ๐ค๐ช๐ง๐๐๐จ
6.๐๐ฃ๐ฃ๐ค๐ซ๐๐ฉ๐๐ค๐ฃ
Businesses that operate internationally can exchange technology.
Open borders allows ideas to flow from one country to another
7.๐๐ฃ๐๐ง๐๐๐จ๐๐ ๐พ๐๐ฅ๐๐ฉ๐๐ก ๐๐ก๐ค๐ฌ (flow of money thru the countries !)
10 Negative effects of globalization:
10
๐.๐๐จ๐ฌ๐ญ ๐๐จ๐๐ฌ๐ทโ
Many Canadians have lost their jobs due to outsourcing (cheaper to hire overseas)
๐.๐
๐๐๐ซ ๐จ๐ ๐๐จ๐ ๐๐จ๐ฌ๐ฌ
๐ฑ
๐. ๐๐จ๐ฌ๐ฌ ๐จ๐ ๐๐๐ง๐๐๐ข๐๐ง ๐๐ซ๐จ๐๐ฎ๐๐ญ๐ข๐ฏ๐ข๐ญ๐ฒ
Some Canadian companies will lose their comparative advantages to countries with cheaper labour
๐จ๐ฆ๐
๐. ๐๐ฑ๐ฉ๐ฅ๐จ๐ข๐ญ๐๐ญ๐ข๐จ๐ง ๐จ๐ ๐๐ก๐๐๐ฉ ๐๐๐๐จ๐ฎ๐ซ
๐ฟ๐ฐ
๐. ๐๐ง๐๐ซ๐๐๐ฌ๐๐ ๐๐จ๐ฅ๐ฅ๐ฎ๐ญ๐ข๐จ๐ง
Companies can move their factories to countries with limited pollution laws (save costs)
๐ญ
๐.๐๐๐๐๐ญ๐ฒ ๐๐จ๐ง๐๐๐ซ๐ง๐ฌ
โ
๐. ๐๐ฉ๐ซ๐๐๐ ๐จ๐ ๐๐ข๐ฌ๐๐๐ฌ๐
Covid-19
โฃ
๐. ๐๐ง๐๐ซ๐๐๐ฌ๐ ๐ข๐ง ๐๐ง๐๐จ๐ฆ๐ ๐๐๐ฉ
Gap between rich and poor is widening
Erosion of the middle class
โ
๐. ๐๐ง๐๐ฅ๐ฎ๐๐ง๐๐ ๐จ๐ ๐๐ฎ๐ฅ๐ญ๐ข๐ง๐๐ญ๐ข๐จ๐ง๐๐ฅ
Corporations (MNCs) on Governments
Powerful MNCs can manipulate global politics (apple mcdonalds amazon)
๐๐
๐๐. ๐๐ก๐ ๐๐ง๐ญ๐ข๐ซ๐ ๐ฐ๐จ๐ซ๐ฅ๐ ๐ฆ๐๐ฒ ๐๐ ๐๐๐๐๐๐ญ๐๐ ๐๐ฒ ๐๐ง
๐๐ฏ๐๐ง๐ญ ๐ญ๐ก๐๐ญ ๐ญ๐๐ค๐๐ฌ ๐ฉ๐ฅ๐๐๐ ๐ข๐ง ๐จ๐ง๐ ๐ง๐๐ญ๐ข๐จ๐ง.๐ง
Recession (2008)
Price of oil increasing
Wars
THE RISE OF POPULISM
An ideology with a concern for the โthe commonโ citizen.
Promotes protectionism (restrict imports through tariffs, quotas etc.)
Goal is to boost domestic industry.
Rising sentiment in many countries (US, France, UK)
globalization video
https://www.youtube.com/watch?v=vmyH2YFR2cw&authuser=2
4 reasons
WHY DO COMPANIES EXPAND INTERNATIONALLY? (eat dont cut calories)
๐๐
๐ฝ๐ฎ๐ป๐ฑ ๐ ๐ฎ๐ฟ๐ธ๐ฒ๐๐ & ๐๐ป๐ฐ๐ฟ๐ฒ๐ฎ๐๐ฒ ๐ฆ๐ฎ๐น๐ฒ๐
๐Can lead to more profits
๐Profits mean success for a business
๐ฎ. ๐๐ถ๐๐ฒ๐ฟ๐๐ถ๐ณ๐ถ๐ฐ๐ฎ๐๐ถ๐ผ๐ป
๐In order to diversify a companyโs product line they may choose to enter a specific international market.
๐Prevents companies from restricting their products or services to the domestic market.
๐ฏ. ๐๐ผ๐ป๐๐ฟ๐ผ๐น๐น๐ถ๐ป๐ด ๐๐
๐ฝ๐ฒ๐ป๐๐ฒ๐
๐ฐEvery business wants to have low expenses; so some companies will therefore enter the global arena to minimize their costs
๐ฐCompanies will examine the resources they need and where they can get them at the lowest price
๐ฐBusiness might choose to take advantage of lower labor costs, better technology, natural resources, tax incentives
๐ฐ. ๐๐ผ๐บ๐ฝ๐ฒ๐๐ถ๐๐ถ๐๐ฒ๐ป๐ฒ๐๐๐ฅ
Many companies expand globally for defensive reasons - to protect themselves from competitors or potential competitors, or to gain advantage over them
What are the 4 reasons governments set up trade barriers?
To protect local businesses
and jobs
Generate revenue
Protect citizens from harmful products
define PROTECTIONISM
using barriers to trade to protect
domestic producers/industries from foreign competition.
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
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:
๐๐ฑ๐ฉ๐จ๐ซ๐ญ๐๐ซ๐ฌ:
-foreign businesses want to buy Canadian goods
-Canadian companies can sell more products cause they are cheaper
-Benefits Canadaโs manufacturing sector
๐๐๐ง๐๐๐ข๐๐ง ๐๐จ๐ฎ๐ซ๐ข๐ฌ๐ฆ:
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
๐๐๐ง๐๐๐ข๐๐ง ๐๐๐ญ๐๐ข๐ฅ
gain an edge because shopping in the United States in person or online is more expensive.
LOSERS OF A LOW CANADIAN DOLLAR:
๐๐ฆ๐ฉ๐จ๐ซ๐ญ๐๐ซ๐ฌ
-more expensive to import and sell products in Canada.
-businesses that import expensive equipment, raw materials and technology have higher production costs
๐๐๐ง๐๐๐ข๐๐ง ๐๐ซ๐๐ฏ๐๐ฅ๐๐ซ๐ฌ
costs more to travel to the United States for business or pleasure
๐๐๐ฃ๐จ๐ซ ๐๐ฉ๐จ๐ซ๐ญ๐ฌ ๐๐๐๐ฆ๐ฌ
pay their players in USD; more costly
What is an exchange rate?
Which currency is worth more? American or Canadian?
floating exchange rateโฆ
Factors that effect exchange rate..hard vs soft currency
speculatingโฆ
EXCHANGE RATE: ๐ค (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 Canadaโs 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:*๐บ๐ธ๐จ๐ฆhttps://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:
๐๐ง๐๐ฅ๐๐ญ๐ข๐จ๐ง ๐๐๐ญ๐ (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.
๐๐ง๐ญ๐๐ซ๐๐ฌ๐ญ ๐๐๐ญ๐ (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.
๐๐ง๐๐ฆ๐ฉ๐ฅ๐จ๐ฒ๐ฆ๐๐ง๐ญ
The number of Canadians without jobs.
A low unemployment rate signals a stable, healthy economy, causing the CDN Dollar to rise
๐๐ซ๐จ๐ฌ๐ฌ ๐๐จ๐ฆ๐๐ฌ๐ญ๐ข๐ ๐๐ซ๐จ๐๐ฎ๐๐ญ (๐๐๐)
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.
๐๐๐ซ๐ฆ๐ฌ ๐จ๐ ๐๐ซ๐๐๐ (๐ญ๐ซ๐๐๐ ๐๐๐ฅ๐๐ง๐๐)
The greater a countryโs 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.
๐๐จ๐ฅ๐ข๐ญ๐ข๐๐ฌ
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.
๐๐ฌ๐ฒ๐๐ก๐จ๐ฅ๐จ๐ ๐ข๐๐๐ฅ ๐
๐๐๐ญ๐จ๐ซ๐ฌ
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.
๐๐ฎ๐ฟ๐ฑ ๐๐๐ฟ๐ฟ๐ฒ๐ป๐ฐ๐โ easily converted to other currencies around the world (the U.S. dollar, the Euro, CDN dollar)
๐ฆ๐ผ๐ณ๐ ๐๐๐ฟ๐ฟ๐ฒ๐ป๐ฐ๐ โ 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.
read this article on competitive advantage(โฟ^โฟ^)!
https://www.investopedia.com/terms/c/competitive_advantage.asp
What is a competitive advantage?
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
Economic utility
productโs ability to satisfy the needs and wants of the customer
(โ โฟโ)
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
Factors Affecting Canadaโs Competitiveness
๐ชทQuality & quantity of natural resources
๐ชทStrength of the countryโs currency and its exchange rate
๐ชทInfrastructure in the country
๐ชทResearch & Development
๐ชทWorkforce characteristics
๐ชทSocietal characteristics
๐ชทEntrepreneurship
๐ชทGovernment involvement
Tariffs
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
3 Winners of tariffs
1.Domestic governments
they collect the additional taxes
2.Local producers
their goods are more competitively priced
3.Local employees
they keep their jobs
3 Losers of tariffs
- Foreign Producers
their goods are now more expensive - Consumers
the price of the products go up and are forced to pay higher prices - Foreign employees
the people working overseas lose out on opportunities
Trade Quotas
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
Trade Embargos๐จ๐บ๐บ๐ธ
โImposed by the government.
โBans trade on a specific product or with a specific country.
โOften done to put pressure on foreign governments to change their policies or to protest human rights violations.
When Canada imposes a trade embargo:
๐จ๐ดThere is an increased need on domestic products.
๐May cause the price of a product to increase, because the supply has decreased.
WHEN ANOTHER COUNTRY IMPOSES A TRADE EMBARGO ON CANADA?
๐ผThere is a surplus domestic supply.
๐ผCanadian companies need to find alternative markets to buy their products.
๐ผIf not, they need to decrease production or close factories.
Foreign subsidiary
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.
