Chapter 1

Question 1

Business

Answer 1

Manufacturing and/or sale of goods and/or services to satisfy the wants and needs of consumers to make a profit

Question 2

Transaction

Answer 2

Exchange of things of value

Question 3

Domestic business

Answer 3

Business transactions within the borders of one country

Question 4

International business

Answer 4

Transactions conducted between businesses located in different countries

Question 5

Domestic market

Answer 5

All your customers live in the country where your business operates

Question 6

Foreign market

Answer 6

All the customers are in a country other than your own

Question 7

5 ways to internationalize a business

Answer 7

1. Own a retail of distribution outlet in another country
2. Own a manufacturing plant in another country
3. Export to business in another country
4. Import from business to another country
5. Invest in business in another country

Question 8

The Middle East

Answer 8

• oil centred = not sustainable
• political instability & lack of industrialization limit trade
• United Arab Emirates trade w/ Canada (not oil)

Question 9

India

Answer 9

• pop over 1 billion
• growing middle class
  workforce= young / well educated
• major centre of outsourcing and manufacturing
• lack of infrastructure & widespread corruption
• companies aggressively expanding into international markets

Question 10

Africa

Answer 10

• low imports to Canada
• unstable government, lack of infrastructure, rural economies = limited business opportunities
• rich in primary resources
• Morocco, South Africa = trade partners

Question 11

Globalization

Answer 11

Process whereby national or regional economies and cultures have become integrated

Question 12

Interdependence

Answer 12

The reliance of two or more nations on each other for products or services.

Question 13

3 main areas of interdependence

Answer 13

1. Primary industries
2. Secondary
3. Tertiary

Question 14

Primary industries

Answer 14

Natural resources

Question 15

5 major primary industries

Answer 15

1. Agriculture
2. Fishing/ hunting/ trapping
3. Forestry/ logging
4. Energy
5. Mining
   (Water sometimes included in Canada)

Question 16

Secondary industries

Answer 16

Create a finished usable product

Question 17

Products purchased my business

Answer 17

Capital goods

Question 18

Products purchased my individuals

Answer 18

Consumer goods

Question 19

Branch plant

Answer 19

A factory owned by a company based in another country

Question 20

Canadas economy =

Answer 20

Branch plant as many businesses are owned by foreign investors

Question 21

Tertiary industries

Answer 21

Provide necessary services to consumers and other businesses
Ex. Banking

Question 22

The internet

Answer 22

• primary tool for businesses and consumers to buy and sell

- transformed the world into an open market place

Question 23

How do international businesses help Canada (4 ways)

Answer 23

1. variety of products
2. new markets = more jobs
3. foreign investments
4. new processes & technologies

Question 24

How does international business hurt Canadians

Answer 24

Loss of cultural identity

Question 25

5 negative impacts of increased foreign ownership of companies in Canada

Answer 25

1. Foreign companies have foreign loyalties 2. Lack of research and development 3. Reduced exports 4. Revenues leave Canada to pay head office costs 5. Economic destabilization

Question 26

Why is eating local better

Answer 26

- grows the domestic economy - saves nutritional value - better for the environment

Question 27

Why is buying food from other countries cheaper?

Answer 27

Labour is cheaper

Question 28

Pros of foreign investment

Answer 28

- help Canadian firms expand and enter foreign markets

Question 29

When did Columbus come to Canada?

Answer 29

1600s

Question 30

When and where were trade settlements established

Answer 30

Halifax. Montreal. Quebec. Ottawa. Kingston. Toronto. 1700s

Question 31

Why does Canada have stronger ties w/ Britain than France?

Answer 31

Britain won the seven years war w/ France therefore Canada traded more with England than France

Question 32

When did the us gain independence

Answer 32

Late 1700s

Question 33

Us industrial revolution

Answer 33

- 1775 James watt = steam engine | - 1794 Eli Whitney = Cotton gin

Question 34

What did Canada supply to the us

Answer 34

Wheat and timber

Question 35

Why is us bigger than Canada

Answer 35

``` US = manufacturing - more jobs - dependant Can = resource based trading- dependant on Britain ```

Question 36

Why are manufacturing jobs decreasing in us and can

Answer 36

Cheaper labour and improved technology = more economical to manufacture in Asia

Question 37

When did Canada start trading with japan

Answer 37

Late 1940s

Question 38

What is japan known for

Answer 38

Automobiles and high-tech equipment

Question 39

What led to free enterprise promoted in several Chinese districts?

Answer 39

Liberalization of communist economic policies

Question 40

2/3 Chinese exports are foreign owned or invested why?

Answer 40

Because labour is cheap and abundant in china

Question 41

When was NAFTA signed

Answer 41

1993

Question 42

What spurred North America / Mexico trade

Answer 42

NAFTA | North American free trade agreement

Question 43

What is NAFTA

Answer 43

Good made in Mexico or the US can enter Canada duty free. | -Mexican goods = bargain

Question 44

Duty

Answer 44

A tax most countries place on imports to make the price of domestic goods competitive with imported goods