BBB4M - Introduction to International Business Review
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Questions and Answers

Define business.

The process of buying, selling, or trading goods and services.

What is a transaction?

The exchange of goods or services between people or businesses in a deal.

What is a domestic business?

A business run in a local area to its local consumer base.

What makes up a domestic market?

<p>The area of origin, local customers, local raw or finished materials, production of goods.</p> Signup and view all the answers

What makes up a foreign market?

<p>Markets outside of the country of origin, customers around the world, international trade, international logistics (shipping, SKUs).</p> Signup and view all the answers

List the five main ways for companies to participate in international business:

<p>Own a retail or distribution plant in a foreign country (A), Import from businesses in another country (B), Export to businesses in another country (C), Own a manufacturing plant in a foreign country (D), Invest in a business in another country (E)</p> Signup and view all the answers

When is a country considered to be a trading partner with Canada?

<p>When they buy, sell, or trade goods.</p> Signup and view all the answers

When did trade with Asia become important?

<p>Canada began trading with Japan and Asia after World War II.</p> Signup and view all the answers

Why is Mexican trade now important to Canada?

<p>Mexico's trade has developed since the North American Free Trade Agreement (NAFTA) in 1993. It is characterized by free trade, meaning that goods can cross US, Mexico, and Canada borders without taxes. Mexico has been one of Canada's top trading partners since 2000.</p> Signup and view all the answers

What is a duty or tariff?

<p>Money that is owned to the government for selling or buying goods or services that come from international borders.</p> Signup and view all the answers

How are tariffs able to control independence of countries?

<p>Tariffs are able to control independence of countries by allowing them to become more locally developed. For example, higher tariffs can lead to less foreign competition.</p> Signup and view all the answers

Why do countries impose duties on imported products?

<p>Countries impose duties on imported products to make money off of transactions, to control transactions (for example, the quantity of items sold), and to ensure transactions are overseen and safe for the country (for example, military weapons).</p> Signup and view all the answers

What are the three emerging markets that Canadian businesses should know?

<p>Manufacturing (A), Service (B), Natural resources (C)</p> Signup and view all the answers

What is the main product Canada imports from Morocco?

<p>Oil seeds, fruit, grain, meat, seafood, salt, sulfur, earth stone, cement.</p> Signup and view all the answers

What is globalization?

<p>The process when a business creates international influence and distributes, manufactures, and sells its goods or services around the globe.</p> Signup and view all the answers

What is a primary industry?

<p>Industries that harvest or extract raw materials from the earth.</p> Signup and view all the answers

Does Canada have a strong secondary industry sector?

<p>True (A)</p> Signup and view all the answers

What is another name for tertiary industries?

<p>Service sector.</p> Signup and view all the answers

What is a branch-plant economy?

<p>A country that hosts many branch plants from other countries.</p> Signup and view all the answers

Why is Canada considered to have a branch-plant economy?

<p>Canada has many foreign businesses in many different industries, such as clothing, food, and other sectors, contributing to the presence of branch plants.</p> Signup and view all the answers

How do secondary industries add value to a product?

<p>Secondary industries transform raw materials into finished products, adding value through quality improvement, product diversification, and efficient manufacturing processes.</p> Signup and view all the answers

What are four ways that international business helps Canadians?

<p>International business helps Canadians by providing a variety of products, cheaper prices, new processes and technologies, creating jobs, and creating ties with foreign countries.</p> Signup and view all the answers

What does FDI stand for?

<p>Foreign direct investment.</p> Signup and view all the answers

How does portfolio investment help Canadian business?

<p>Portfolio investment protects investors.</p> Signup and view all the answers

Why is it important to retain an R&D department in Canadian businesses?

<p>It is important to gather data of strengths and weaknesses to improve, driving innovation and enhancing competitiveness.</p> Signup and view all the answers

What are the two main ways that international business hurts Canadians?

<p>Local businesses have more competition. (A), Loss of culture / increase of foreign ownership of Canada (B)</p> Signup and view all the answers

Why is U.S. culture so dominant in Canada? Provide two reasons.

<p>The US is a very close trading partner of Canada. The US is very close to Canada and similar due to things such as language.</p> Signup and view all the answers

What percentage of music played on Canadian radio stations should have Canadian artists?

<p>At least 35% between 6 a.m. - 6 p.m. Monday - Friday.</p> Signup and view all the answers

What percentage of Canadian corporations are foreign-owned?

<p>A significant percentage of Canadian corporations are foreign-owned.</p> Signup and view all the answers

What are five problems associated with foreign ownership of Canadian companies?

<p>Domestic businesses suffer (A), Weaker Canadian dollar (B), Royalties to foreign countries (C), Loss of culture (D), More pollution (E)</p> Signup and view all the answers

What is importing? Give an example of an import item.

<p>Importing refers to the process of bringing goods into a country from another country. An example is the import of spices.</p> Signup and view all the answers

State five of Canada's major imports.

<p>Machinery (A), Mineral Fuels (B), Vehicles (C), Electronics (D), Pharmaceuticals (E)</p> Signup and view all the answers

What is exporting? State an example of an export product.

<p>Exporting is the process of sending goods out of a country to another country. An example is the export of coffee.</p> Signup and view all the answers

Explain the concept of value added.

<p>The process of making products more valuable by making it in a certain way, marketing it, or using better materials.</p> Signup and view all the answers

Define licensing agreement. Give an example.

<p>A contract between the copyright holders of software to people who want to produce, and distribute these goods.</p> Signup and view all the answers

Define franchise.

<p>An authorization to run a franchise from franchisor to franchisee to produce and distribute goods.</p> Signup and view all the answers

What is included in a franchising agreement?

<p>A franchising agreement typically includes details regarding marketing, product development, brand reputation, store layout, customer base, and employee base.</p> Signup and view all the answers

Name five Canadian-owned franchises.

<p>Mr. Lube (A), Pet Valu (B), Booster Juice (C), Tim Hortons (D), Pizza Pizza (E)</p> Signup and view all the answers

Give an example of a Canadian joint venture.

<p>An example of a Canadian joint venture is Kellogg’s and Wilmar.</p> Signup and view all the answers

What is a foreign subsidiary? Give two examples of Canadian-owned foreign companies.

<p>A foreign subsidiary is a business that is operating overseas that is mainly from a different country. Two examples are 7-Eleven and Tim Hortons.</p> Signup and view all the answers

What is a tariff?

<p>A tariff is a tax on imports or exports.</p> Signup and view all the answers

Define protectionism.

<p>Protectionism is the restriction of imports from foreign countries to protect domestic businesses.</p> Signup and view all the answers

What is a quota?

<p>A quota is limitations.</p> Signup and view all the answers

Compare and contrast tariffs and quotas.

<p>Similar: involve imports or exports (A), Different: tariffs are money. Quotas are limits. (B)</p> Signup and view all the answers

Define embargo.

<p>An embargo is a ban of trade.</p> Signup and view all the answers

Explain how standards can be a trade barrier.

<p>A technical barrier to trade (TBT), such as standards, can be a trade barrier when they specify a product's characteristics, such as size, functions, and performance, as well as labeling or packaging, and testing and certification requirements before it can enter a country's market.</p> Signup and view all the answers

What is an exchange rate?

<p>An exchange rate is the conversion of the value of currency.</p> Signup and view all the answers

If CAD$1.00 = USD$0.89, how much would CAD$1,000 be worth in US dollars?

<p>CAD$1,000 would be worth $890 USD.</p> Signup and view all the answers

Who are the winners and the losers of a high Canadian dollar?

<p>Losers- exporters, Canadian tourism, Canadian retailers (A), Winners- importers, Canadian travellers, major league sports teams (B)</p> Signup and view all the answers

What factors influence the exchange rate?

<p>Supply and demand (A), Interest rates (B), Inflation (C), Geopolitical stability (D)</p> Signup and view all the answers

What is speculation?

<p>Speculation is forming a theory about a subject without evidence.</p> Signup and view all the answers

Why are time zones considered a barrier to international business?

<p>Time zones are considered a barrier to international business because of different times of meetings, as employees work at different times, compromising communication and coordination across different time zones.</p> Signup and view all the answers

What is culture?

<p>Culture refers to customs, traditions, and the way of life for different people.</p> Signup and view all the answers

How do we learn our culture?

<p>We learn our culture through exposure to various sources, including family, friends, school, media, and our experiences.</p> Signup and view all the answers

What might happen when a person from a foreign culture moves to Canada?

<p>A person from a foreign culture moving to Canada may encounter language barriers, different styles of life, different foods, different currency, and different laws.</p> Signup and view all the answers

Name a subculture in Canada.

<p>An example of a subculture in Canada is Indigenous people.</p> Signup and view all the answers

Define counterculture.

<p>A counterculture is a group whose ways of life oppose the culture of the host country.</p> Signup and view all the answers

Explain how the religion of Islam has determined Saudi Arabian culture?

<p>Saudi Arabian culture is heavily influenced by Islam, shaping traditions and customs from a young age, including prayer times that affect meeting hours and social events, as well as the significance of pilgrimages in business and personal life.</p> Signup and view all the answers

How has Saudi Arabia's climate influenced Saudi culture?

<p>The climate of Saudi Arabia significantly influences Saudi culture, influencing the style of dress, working conditions, food choices, and even the timing of business activities due to variations in daylight hours and weather conditions.</p> Signup and view all the answers

What are the two primary religions in Japan?

<p>Shinto (A), Buddhism (B)</p> Signup and view all the answers

What are two aspects of Japanese culture that are different from Canadian culture?

<p>Foods and ways of life are different (B), Tipping is not normal (C)</p> Signup and view all the answers

Is a high degree of cultural awareness of foreign markets necessary for every foreign investor?

<p>False (B)</p> Signup and view all the answers

What four things should a business owner consider before spending a great amount of money?

<p>Inflation (A), GDP (B), Unemployment rate (C), Cultural differences (D)</p> Signup and view all the answers

What is the major service that Canada exports?

<p>The major service that Canada exports is commercial services and tourism.</p> Signup and view all the answers

What might be a cultural savings goal of a Japanese family with one or more children?

<p>A cultural savings goal for a Japanese family with children might be to save money for a Kimono, a traditional garment worn for special occasions.</p> Signup and view all the answers

How does culture affect financial services?

<p>Buying and selling certain goods or services (A), Ways of business (B), Times of business (C)</p> Signup and view all the answers

What are cultural norms?

<p>Cultural norms are everyday things that people do regularly.</p> Signup and view all the answers

What are five pieces of labour legislation that reflect the cultural norms in Canada?

<p>Canada has a comprehensive system of labour legislation that reflects its cultural norms, including workplace safety, minimum wage, working hours, employment standards, and human rights.</p> Signup and view all the answers

What are the four major issues that Canadian businesses should be aware of?

<p>Canadian businesses should be aware of four major issues: <em>blood diamonds</em>, <em>meeting cultures</em>, <em>business etiquette</em>, and <em>the importance of cultural dimensions</em>.</p> Signup and view all the answers

What does the term "blood diamond" mean? Would you buy a piece of jewelry without documentation?

<p>A blood diamond is a diamond that is mined in a conflict zone, where proceeds from the sale of the diamonds are used to fund war, violence, and human rights abuses. It would not be ethical to buy a diamond without documentation, as it might be a blood diamond.</p> Signup and view all the answers

What are the three major components of a "meeting culture"?

<p>Artifacts (A), Symbols (B), Languages (C), Values (D), Norms (E)</p> Signup and view all the answers

Who is more likely to be late for a meeting: a monochronic negotiator or a polychronic one?

<p>A polychronic negotiator is more likely to be late for a meeting.</p> Signup and view all the answers

What problems could result if two people with different spatial perceptions were in the same meeting?

<p>A person with a larger spatial perception may be offended by a person with a smaller spatial perception, potentially leading to misunderstandings and discomfort during meetings.</p> Signup and view all the answers

How would you indicate "no" in Albania?

<p>To indicate &quot;no&quot; in Albania, you would nod your head.</p> Signup and view all the answers

What are five questions you might ask about the business etiquette expected by people in another country?

<p>What is perceived as respectful and disrespectful? (A), How do meetings go? (B), Are they polychronic or monochronic? (C), What are the proper business attire for men and women? (D), What are the best attitudes, religions, beliefs, and times that they use? (E), How do you properly greet people (men and women)? (F)</p> Signup and view all the answers

What are Geert Hofstede's five cultural dimensions?

<p>Geert Hofstede identified five cultural dimensions: power distance, uncertainty avoidance, masculinity versus femininity, individualism versus collectivism, and long-term orientation.</p> Signup and view all the answers

What is a feature of cultures that have a high score in the uncertainty avoidance dimension?

<p>Cultures with a high score in the uncertainty avoidance dimension tend to rely on their set rules and ways of doing things.</p> Signup and view all the answers

What is a feature of highly individualistic cultures?

<p>A feature of highly individualistic cultures is direct communication.</p> Signup and view all the answers

What is the highest-ranking cultural dimension for Mexicans?

<p>The highest-ranking cultural dimension for Mexicans is Uncertainty Avoidance.</p> Signup and view all the answers

What is the highest-ranking cultural dimension for Canadians?

<p>The highest-ranking cultural dimension for Canadians is individualism.</p> Signup and view all the answers

What are the four questions all economic systems answer?

<p>How should the goods and services be distributed throughout the country? (A), What should the country produce and in what quantities? (B), What should be the price of goods and services? (C), How should scarce resources, such as labor and capital, be allocated? (D)</p> Signup and view all the answers

What should the country produce and in what quantities?

<p>A country should produce the quantity of goods and services where supply equals the amount demanded.</p> Signup and view all the answers

How should scarce resources such as labor and capital be allocated?

<p>Scarce resources such as labor and capital should be allocated efficiently and effectively, considering factors such as local supply chains, environmental impact, and the need to minimize waste and maximize productivity.</p> Signup and view all the answers

How should the goods and services be distributed throughout the country?

<p>Goods and services should be distributed efficiently and effectively, ensuring that they reach consumers who need and want them, minimizing waste and promoting equitable access to essential goods.</p> Signup and view all the answers

What should be the price of goods and services?

<p>The price of goods and services should be determined by free competition in the market. The price should be set at a level that allows businesses to cover their costs and earn a profit, while also being affordable and attractive to consumers.</p> Signup and view all the answers

Define market economy.

<p>A market economy is an economic system determined by free competition, where businesses, consumers, and market forces determine what goods are created and sold.</p> Signup and view all the answers

Describe how a market economy deals with private property, profit, and competition.

<p>A market economy operates under the principles of private property, where individuals and businesses have the right to own and control their assets, and profit, where individuals and businesses are incentivized to generate profits through their activities. Competition is the key driver of a market economy, encouraging businesses to innovate, reduce prices, and improve their products and services.</p> Signup and view all the answers

Flashcards

What is business?

The process of buying, selling, or trading goods and services.

What's a transaction?

An exchange of goods/services between people or businesses in a deal.

What is a domestic business?

A business run in its local area to its local consumer base.

What makes up a domestic market?

The area of origin, local customers, local raw/finished materials, production of goods.

Signup and view all the flashcards

What makes up a foreign market?

Outside of the country of origin, customers around the world, international trade, international logistics (shipping, SKU’s).

Signup and view all the flashcards

When is a country a trading partner?

A country is considered a trading partner with Canada when they buy, sell, or trade goods with each other.

Signup and view all the flashcards

What is a duty or tariff?

Money owed to the government for selling/buying goods or services across international borders.

Signup and view all the flashcards

Why do countries impose duties?

Countries impose duties to make money from international transactions, control the quantity of items sold, and ensure safety (like controlling weapons).

Signup and view all the flashcards

What is globalization?

The process of a business creating international influence and distributing, manufacturing, and selling its goods or services globally.

Signup and view all the flashcards

What is a primary industry?

Industries that harvest or extract raw materials from the earth.

Signup and view all the flashcards

Does Canada have a strong secondary industry sector?

Yes, Canada has a strong secondary industry sector due to its mining, oil extraction, and natural resources like timber.

Signup and view all the flashcards

What's another name for tertiary industries?

Service sector.

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What is a branch-plant economy?

A country that hosts many branch plants from other countries.

Signup and view all the flashcards

Why is Canada considered a branch-plant economy?

Canada is considered a branch-plant economy because it has many foreign businesses in various industries like clothing, food, etc.

Signup and view all the flashcards

How do secondary industries add value?

Secondary industries add value by transforming raw materials into finished products, improving quality or quantity.

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How do tertiary industries add value?

Tertiary industries add value by marketing, selling, and creating jobs.

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How does international business help Canadians?

International business helps Canadians by providing a variety of products, cheaper prices, new technology, creating jobs, and strengthening relationships with foreign nations.

Signup and view all the flashcards

What does FDI stand for?

Foreign direct investment.

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How does portfolio investment help?

Portfolio investment protects investors by diversifying their investments across different countries.

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What does R&D stand for?

Research and development.

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Why is R&D important?

An R&D department is important for gathering data on strengths and weaknesses to improve products and processes.

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How does international business hurt Canadians?

International business can hurt Canadians by increasing competition for local businesses and leading to a loss of culture and foreign ownership.

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Why is US culture dominant in Canada?

US Culture is dominant in Canada due to close trading ties and similarities in language and culture.

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What is the Canadian content requirement for radio?

Canadian radio stations are required to play at least 35% Canadian music between 6am and 6pm, Monday-Friday.

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What does MAPL stand for?

Music Artist Performance and Lyrics.

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What is importing?

Importing is the process of goods being shipped into a country from across borders.

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What is exporting?

Goods that are sent out of a country across borders.

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Explain the concept of value added.

The process of making products worth more by improving their quality, marketing, or using better materials.

Signup and view all the flashcards

What is a licensing agreement?

A contract between the copyright holders of software to people who want to produce and distribute these goods.

Signup and view all the flashcards

What is a franchise?

A contract granting authorization to run a franchise from the franchisor to the franchisee to produce and distribute goods.

Signup and view all the flashcards

Study Notes

Exam Review

  • Topics covered in the exam include: What is trade?, Trade in the modern world, What is culture?, Economics and Politics, International Trade Agreements and Organizations, Social Responsibility and NGOs, Marketing, Logistics, Canada and International Business.
  • The exam review is for a course titled "BBB4M - Introduction to International Business".
  • The review covers three days of material.

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BBB4M Introduction to International Business Exam Review (PDF)

Description

Prepare for your exam with this comprehensive review covering key topics in international business. From understanding trade and culture to exploring economics, politics, and international agreements, this quiz will help reinforce your knowledge. Brush up on logistics, marketing, and Canada's role in the global market.

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