Notesale: Turn your study into money

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Chapter 1: What is trade?
International Business Defined:
Business- the manufacturing and/or scale of goods and/or services to satisfy the needs and wants
of consumers to make a profit
Transaction- an exchange of things of value
Domestic Business- a business that makes most of its transactions within the borders of the
country in which its based
A domestic business in Canada is:
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
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owned by Canadians
relies on Canadian products and services
sells products and services to Canadians

B2C- business-to-consumer


ex: Tim Horton's to consumers

B2B- business-to-business
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ex: marketing firm

International Business- the economic system of transactions conducted between business
located in different countries
Types of Transactions:
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Domestic transactions are made between two Canadian companies
International transactions involve a Canadian company and a non Canadian company

Domestic Market- the customers of a business who live in a country where the business
operates
Foreign Market- the customers of a business who live in a different country than the one where
the business operates
Five ways for a business to be considered an international business:
1
...
Own a manufacturing plant in another country
3
...
Import from business in another country
5
...
Is the degree to which members of the group are
mutually dependent on the others
...

Multinational Corporations- is usually a large corporation which produces or sells
goods or services in various countries
...

Making significant investments in a foreign country
...
C
working to foster global monetary cooperation, secure financial stability, facilitate
international trade, promote high employment and sustainable economic growth, and
reduce poverty around the world
...


Globalization:
Globalization- the process whereby national or regional economics and cultures have become
integrated through:
 New global communication technologies
 Foreign direct investment (FDI)
 International trade
 Migration
 New Forms of transportation
 Flow of money
FDI(Foreign Direct Investments)- a controlling ownership in a business enterprise in one
country by an entity based in another country
...

Value Added- the amount by which the value of an article is increased at each stage of its
production, exclusive of initial costs
...

Economic tie between countries strengthen-tax treaties were negotiated, tariffs
abolished, global corporations developed
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Has increased interdependence of all nations blurring political boundaries
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Three main areas of interdependence:
1
...
Secondary industries
3
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Five major primary industries:
 agriculture
 fishing, hunting, and trapping
 forestry and logging

 energy
 mining
In Canada, water is sometimes included in this list as well

Secondary Industries:
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Industries that create a finished, usable product
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Example of a company with branch plants in Canada

Tertiary Industries (service sector):
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Industries that do not make a product or extract resources from the earth, but provide
necessary services to consumers and other businesses
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Canadian Radio-television and Telecommunications Commission (CRTC)
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Established a system of quotas to regulate the amount of Canadian program content
broadcast in Canada

Signal (Simultaneous) Substitution:
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Occurs when a signal is temporarily replaced by another one airing the same program at
the same time
Usually, an American signal (ex: affiliates of ABC, NBC, CBS, Fox) is replaced with a
Canadian signal

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