business

• 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.
• What is 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 its based
• International business?

  business activities needed to create, ship and sell goods/services internationally from producers to consumers
• Domestic market?

  all your customers live in the country where your business operates
• Foreign Market?

  all the customers in a different country other than your own
• how is a business considered an internation business?

  own a retail or distribution outlet in another country, own a manufacturing plant in another country, export to businesses in another country, import from business in another country and invest in businesses in another country
• importance of internation business?

  meets our needs, creates more jobs, atracts investors, innovation and diversity
• canada's major industry?

  primary, secondary/manufacturing and tertiary/services
• primary industry?

  extraction and initial processing of all raw materials
• 6 major primary industries in Canada?

  agriculture, fishing, hunting and trapping, forestry and logging, energy and mining and water
• Western Canada produced oil and gas...
• The Atlantic produce?

  oil reserves, fisheries and mines
• US depends on Canadian resources such as oil and petroleum and water
• Secondary/Manufacturing industry?

  Industries that make or process large quantities of raw materials into finished products, usually with machines
• Primary manufacturing (processing)?

  taking raw materials and creating a finished good
• Secondary manufacturing (fabrications)?

  capital goods (products used by businesses), consumer goods
• Tertiary/services industries?

  Do not make or extract anything from the earth, provide necessary services to other businesses and consumers
• World Trade Organization?

  WTO deals with the global rules of trade between nations and its main function is to ensure that trade flows as smoothly
• Why does canada trade internationaly?

  company growth, entry to new markets, access to financing, increased profits, more customers, access to inexpensive supplies
• Import?

  goods are services produces in a country and brought to another country for sale
• export?

  goods are services produced in one country and sold to another
• trade surplus?


  more export then import
• benefits of trade surplus?

  more jobs provided for domestic citizens, higher employment, more income and spending
• trade deficit?


  more imports then exports
• Advantages of international trade?

  more jobs, lower prices, new technology, meets our needs, new markets and cultural development
• Two types of foreign investment?

  portfolio and direct investment
• Direct investment?

  other countries can invest in factories, offices and warehouses
• Portfolio investment?


  purchase of stocks or firms
• what is globalization?

  process wherby national/regional economies and cultures become integrated through: new global communication technologies, foreign direct investment, international trade, immigration, new forms of transportation and the flow of money
• History of globalization?

  historians view the expansion of the Roman Empire as an early form of globalization
• when did globalization begin?

  after WW2 and United Nations and fostering of trade nations
• positive effects of globalization?

  outsourcing, lower prices, decrease in poverty, innovation, optimal use of resources, better jobs, increased capital flow
• Outsourcing?


  use of outside resources (such as raw materials and labor) Usually cheaper and can offer the customer lower prices
• globalization overall has integrated?

  sales, finance, global monetary markets, manufacturing, transportation, communication across the world
• Negative effects of globalization?

  lost of jobs, fear of job loss, loss of Canadian productivity, exploitation of cheap labour, increased pollution, safety concerns. spread of disease, increase in income gap, influence of multinational corporations on government
• the rise of populism?

  ideology with a concern for the "the common citizen" and goal is to boost domestic industry
• why do companies expand internationally?

  expand markets, increase sales, diversification, controlling expenses and competitiveness
• licensing agreement?

  gives a company permission to use a product, service, brand name