final test review

Question 1

what isa domestic transaction?

Answer 1

Selling of items that are produced in the same country

Question 2

what is an international transaction

Answer 2

Selling of items that are produced in another country

Question 3

what does international transactions include?

Answer 3

creating,shipping,selling goods and services across national borders

Question 4

what is the global economy?

Answer 4

the exchange of goods and services among people in different countries throughout the world

Question 5

benefits of doing business internationally

Answer 5

1. access to markets
2. cheaper labour
3. increased quality of goods
4. increased quantity
5. access to resources

Question 6

what are the five P’s of internatioal business

Answer 6

1. product
   2.price
2. proximity
3. preference
   5 promotion

Question 7

what are the social costs associated with international trade

Answer 7

1. offshore outsourcing
2. human rights issues and labour abuses
3. environmental degradation and sustainable development

Question 8

what is offshore outsourcing

Answer 8

practice of subcontracting work to other companies to lower costs or to focus on tasks done better

Question 9

what are human rights and labour issues

Answer 9

workers in other countries often face a wide range of abuses in the workplace (labour exploration, physical and sexual abuse, lack of health and safety etc)

Question 10

what is environmental degradation

Answer 10

environment degradation is the consumption of natural resources such as trees, water, earth, habitat and air, faster that nature can replenish them

Question 11

what is sustainable development

Answer 11

the process of developing land, cities, and businesses that meets the present needs without it compromising future generations

Question 12

why does the canadian gov’t use barriers/roadblocks?

Answer 12

to protect domestic business and consumers

Question 13

what is a tariff

Answer 13

a form of tax on certain types of imports

Question 14

what is a non- tariff barriers

Answer 14

standards for the quality of imported goods can be set so high that competitors can’t enter market

Question 15

what are excise taxes

Answer 15

taxes on the manufacture, sale or consumption of a particular product within a country.

They put high taxes
To control behaviour

Question 16

what are currency fluctuations

Answer 16

an international purchase made one day may cost less or more than another purchase on the following day

Question 17

what is the balance of trade

Answer 17

countries try to import the same total value of products that they export. an imbalance of the two results in the following

Question 18

what is trade deficit

Answer 18

imports exceed exports

Question 19

what is trade surplus

Answer 19

exports exceed imports

Question 20

5 ways to offset the risk of importing

Answer 20

1. gauge consumer interest
2. choose foreign suppliers carefully
3. learn about the culture to will be dealing with
4. consider purchase agreements carefully before signing
5. when the goods arrive, check them carefully to ensure everything you ordered is there and in good condition

Question 21

what is direct exporting

Answer 21

the exporter deals with directly with the importer

Question 22

what is indirect exporting

Answer 22

the goods move from the exporter to an intermediary and then on to the importer

Question 23

who is canada’s number one trade partner

Answer 23

United States

Question 24

three major reasons for trading with the US include

Answer 24

1. shipping costs are cheaper for nearby locations
2. have similar interests, tastes and speaks the same language
3. larger pop. gives canadiaans access to a larger market

Question 25

two main advantages to reducing trade barriers

Answer 25

1. domestic business can sell their products abroad at lower prices since duties are not added 2. consumers have access to new foreign products that may result in lower costs and qualityy improvement of domestic products

Question 26

ex. of trade agreements

Answer 26

World Trade Organization | North American Free Trade Agreement

Question 27

what is a bilateral agreement

Answer 27

involve canada and another country (have bilateral agreements with Chile and Isreal)

Question 28

what is a trading Bloc

Answer 28

a group of countries sharing the same trading interests

Question 29

what is EU

Answer 29

European Union- the union of many european countries into a single market. use the euro and have neglected government

Question 30

impact of cultural differences

Answer 30

Culture can be learned | operatin in different cultures require research etc

Question 31

Law of demand

Answer 31

As the price goes up the consumer buys less.

Question 32

Law of supply

Answer 32

As the prices go up the suppliers want to supply more

Question 33

Factors that effect the law of demand

Answer 33

* Change in expectation in the future * Change in consumer income * Change in consumer taste

Question 34

What affects the law of supply

Answer 34

Change in number of producers Change in number of sellers in the market Changes in technology

Question 35

What are ethics

Answer 35

Rules that tell you the difference between right and wrong

Question 36

Fraud

Answer 36

Crime of lying or pretending

Question 37

Insider trading

Answer 37

Buying and selling shares base on confidential information

Question 38

Cooperate social responsiblity

Answer 38

Being responsible towards your customers, employees and communities ( no discrimination, fair labour practices, truthful in advertising)

Question 39

What is fair trade

Answer 39

Eliminate the middle man

Question 40

what is the world trade organization

Answer 40

only organization that deals with the rules of trade between nations

Question 41

what is NAFTA

Answer 41

agreement signed by mexico, canada and the US, creating a trilateral rules based trade bloc in north america