Questions and Answers
What is defined as all business transactions necessary for creating, shipping, and selling goods across national borders?
Which term describes goods brought into Canada from another country?
What occurs when Canada exports more goods than it imports?
Which of the following is NOT a benefit of participating in international business?
Signup and view all the answers
How many consumers can Canadian businesses potentially reach in the global market compared to the domestic market?
Signup and view all the answers
Which of the following correctly describes a domestic transaction?
Signup and view all the answers
What measurement indicates the financial health of a specific area, such as a city or country?
Signup and view all the answers
What is it called when a country imports more goods than it exports?
Signup and view all the answers
Which countries have not adopted the euro as their single currency in the EU?
Signup and view all the answers
What is a major impact of cultural differences in business?
Signup and view all the answers
In North America, what is generally expected regarding punctuality?
Signup and view all the answers
How do reading patterns differ between North Americans and some Middle Eastern cultures?
Signup and view all the answers
What might cultural differences set boundaries on?
Signup and view all the answers
What is one advantage of reducing trade barriers?
Signup and view all the answers
Why is it beneficial for Canada to have a trading relationship with the US?
Signup and view all the answers
Which of the following is NOT typically included in international trade agreements?
Signup and view all the answers
What is a common reason for the establishment of trade agreements?
Signup and view all the answers
Which country has a significantly lower percentage mentioned in the trade statistics?
Signup and view all the answers
How do Canadian businesses benefit from reduced trade barriers?
Signup and view all the answers
What factor enhances the appeal of products and services between Canada and the US?
Signup and view all the answers
Which of the following factors does NOT contribute to effective international trade?
Signup and view all the answers
What is the definition of a trade surplus?
Signup and view all the answers
Which sector represents the largest percentage of Canadian exports in 2008?
Signup and view all the answers
Which form of exporting involves dealing directly with the importing company?
Signup and view all the answers
What percentage of Canadian exports in 2008 was represented by Agriculture and Fishing?
Signup and view all the answers
What is a common outcome of a trade deficit?
Signup and view all the answers
Which of the following is NOT a characteristic of direct exporting?
Signup and view all the answers
In which year was the data about Canadian exports published?
Signup and view all the answers
What is an implication of a trade surplus primarily composed of manufactured goods?
Signup and view all the answers
What has been the percentage increase in export sales to the US since 1994?
Signup and view all the answers
What is a major concern regarding Canada's natural resources?
Signup and view all the answers
Which agreement is classified as a regional trade agreement?
Signup and view all the answers
What does protectionism refer to in international trade?
Signup and view all the answers
What is the largest trading bloc in the world?
Signup and view all the answers
Which free trade agreement was established in 2004?
Signup and view all the answers
How are Canada and Mexico perceived in relation to job security in the US?
Signup and view all the answers
What is the impact of trade agreements on democracy as expressed in the concerns?
Signup and view all the answers
Study Notes
Canadian Exports Overview
- Forestry contributes 6% to Canadian exports.
- Agriculture and Fishing account for 8% of exports.
- Automotive Products represent 12%.
- Machinery and Equipment comprise 19%.
- Industrial Goods and Materials make up 23%.
- Energy is the largest sector at 26%.
Balance of Trade
- Represents the relationship between imports and exports.
- Trade Surplus occurs when exports exceed imports, indicating a healthy economy and job creation.
- Trade Deficit occurs when imports exceed exports, often leading to fewer job opportunities in Canada.
Export Business Methods
- Direct Exporting involves the company engaging directly with foreign importers.
- Indirect Exporting relies on third parties or intermediaries to sell products abroad.
International Business Definitions
- Domestic Transaction: Selling goods within the same country.
- International Transaction: Selling goods across national borders, involving shipping and selling internationally.
Economy Definition
- Refers to the financial health at multiple levels: municipal, provincial, national, continental, and global.
- Health measured through employment rates, interest rates, GDP, and trade balances.
Imports and Exports
- Imports are goods or services brought into Canada from abroad.
- Exports are products made in Canada and sold to foreign markets.
- Trade Deficit is indicated by imports exceeding exports.
- Trade Surplus occurs when exports surpass imports.
Benefits of International Business for Companies
- Access to larger markets, beyond Canada’s population of approximately 33.6 million.
- Availability of cheaper labor and improved quality or quantity of goods.
- Access to resources not available domestically.
Global Market Insights
- Global consumer base is approximately 200 times larger than Canada’s domestic market.
- Access to global markets requires adaptation of products to meet diverse consumer preferences.
Canada-US Trade Relationship
- Proximity leads to lower shipping costs.
- Cultural similarities facilitate trade, as both populations often prefer similar goods and services.
- The US population is ten times that of Canada, offering a larger market.
International Trade Agreements
- Legal contracts facilitating trade, designed to lower tariffs and customs duties.
- Agreements define work qualifications, protection for trade secrets, and resolution processes for disputes.
- Benefits include lower prices for products, enhanced competition, and improved quality.
Free Trade Agreements
- Can be bilateral (between Canada and one country) or regional (among groups of countries).
- Examples include the Free Trade Area of the Americas, Central American Free Trade Agreement, and Asia-Pacific Economic Cooperation.
Future of International Business
- A trend towards reduced protectionism for global trade health.
- Continued integration within the European Union and NAFTA.
- Cultural differences impact international business practices.
Cultural Considerations in Trade
- Culture encompasses lifestyle beliefs, customs, and purchasing behaviors.
- Successful international business requires understanding cultural norms, including punctuality and communication styles.
Cultural Norms and Communication
- Punctuality varies widely; North American norms emphasize strict timing, whereas some cultures are more flexible.
- Non-verbal communication and greetings can differ significantly, necessitating market research for effective engagement.
Conclusion
- International business offers vast opportunities, but success requires sensitivity and adaptation to cultural nuances and market demands.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers the details of Canadian exports in 2008, focusing on key sectors such as forestry, agriculture, and fishing. Test your knowledge on the contributions of these industries to the Canadian economy. Analyze the data and understand the export landscape of Canada during that year.
