Podcast
Questions and Answers
Which of the following best describes a business transaction?
Which of the following best describes a business transaction?
- An exchange of value between two entities. (correct)
- A company's annual financial audit.
- The process of developing a new product.
- A business's internal communication strategy.
International trade primarily occurs between countries rather than between individual businesses.
International trade primarily occurs between countries rather than between individual businesses.
False (B)
What term describes the scenario when a country's exports exceed its imports?
What term describes the scenario when a country's exports exceed its imports?
trade surplus
The purchase of stocks and bonds of Canadian firms by foreign investors is known as ______ investment.
The purchase of stocks and bonds of Canadian firms by foreign investors is known as ______ investment.
Match each business activity with its corresponding type of international business involvement:
Match each business activity with its corresponding type of international business involvement:
Which factor has significantly contributed to globalization by enabling real-time communication across different time zones?
Which factor has significantly contributed to globalization by enabling real-time communication across different time zones?
A domestic business is one that conducts transactions primarily with businesses located in other countries.
A domestic business is one that conducts transactions primarily with businesses located in other countries.
What term describes the reliance of two or more nations on each other for products or services?
What term describes the reliance of two or more nations on each other for products or services?
When a country develops a business relationship with another country, the latter becomes its ______.
When a country develops a business relationship with another country, the latter becomes its ______.
Match the following scenarios with their potential impact on domestic businesses:
Match the following scenarios with their potential impact on domestic businesses:
Which of the following is not one of the ways for a business to be considered an international business?
Which of the following is not one of the ways for a business to be considered an international business?
The United States is Canada's largest trading partner due to Canada's limited natural resources.
The United States is Canada's largest trading partner due to Canada's limited natural resources.
Define 'foreign investment' in the context of international business.
Define 'foreign investment' in the context of international business.
The process where national economies and cultures become integrated through global communication, foreign direct investment, and international trade is known as ______.
The process where national economies and cultures become integrated through global communication, foreign direct investment, and international trade is known as ______.
Match the term with its correct definition:
Match the term with its correct definition:
Which outcome is most likely a disadvantage of increased foreign ownership of Canadian companies?
Which outcome is most likely a disadvantage of increased foreign ownership of Canadian companies?
A balance of trade always results in a surplus for every country involved.
A balance of trade always results in a surplus for every country involved.
Define the term 'domestic market'.
Define the term 'domestic market'.
Products or services sent from one country to another are known as ______.
Products or services sent from one country to another are known as ______.
Match each type of interdependence with the appropriate activity:
Match each type of interdependence with the appropriate activity:
Which of the following best represents an example of portfolio investment?
Which of the following best represents an example of portfolio investment?
Increased international trade always leads to a strengthening of cultural identity within a country.
Increased international trade always leads to a strengthening of cultural identity within a country.
What is the key difference between 'foreign investment' and 'portfolio investment'?
What is the key difference between 'foreign investment' and 'portfolio investment'?
Products or services brought into a country for trade are known as ______.
Products or services brought into a country for trade are known as ______.
Match each trade scenario with its correct label:
Match each trade scenario with its correct label:
Flashcards
Business
Business
The manufacturing or sale of goods/services to make a profit.
Transaction
Transaction
An exchange of value between two parties.
Domestic Business
Domestic Business
Business transactions occurring within a company's home country.
International Business
International Business
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Domestic Market
Domestic Market
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Foreign Market
Foreign Market
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Trading Partner
Trading Partner
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Foreign Investment
Foreign Investment
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Portfolio Investment
Portfolio Investment
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Globalization
Globalization
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Interdependence
Interdependence
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Imports
Imports
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Exports
Exports
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Balance of Trade
Balance of Trade
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Trade Surplus
Trade Surplus
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Study Notes
- Business involves the manufacturing or selling of goods/services for profit.
- A transaction is an exchange of value between two parties.
- Domestic businesses operate within their own country.
- International businesses engage in transactions with businesses in other countries.
- A domestic market consists of customers within the business's country.
- A foreign market consists of customers in a different country than the business.
How a Business Can Be Considered International
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Owning a retail outlet in another country qualifies a business as international.
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Owning a manufacturing plant in another country
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Exporting to businesses in another country
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Importing from businesses from other countries
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Investing in businesses in another country
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A trading partner relationship involves countries importing and exporting goods/services to each other, with trade occurring between businesses, not countries.
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The U.S. is Canada's largest trading partner, mainly because Canada possesses many natural resources.
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Foreign investment sees individuals or entities from one country investing in a business in another country to gain operational control.
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Portfolio investment involves buying stocks, bonds, and other financial instruments from Canadian firms.
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This investment helps start new businesses or support struggling ones
Advantages of International Trade
- Introduction of new processes and technologies.
- Real-time processing of business transactions internationally.
- Sourcing of parts, ingredients, and supplies via the internet.
Disadvantages of International Trade
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Potential loss of culture and identity.
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Increased foreign ownership leading to job loss and economic instability.
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Globalization is the integration of national/regional economies through communication technologies, foreign investment, international trade, migration, new transportation, and the flow of money.
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Advances in tech facilitates establishing relationships with foreign countries through communication despite time zones, fostering integration
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Interdependence is the reliance of two or more countries on each other for products or services.
Three Types of Interdependence
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Primary industries
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Secondary industries
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Tertiary industries
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Imports are products/services brought into a country for trade.
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Exports are products/services sent from one country to another.
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The balance of trade is the difference between a country's imports and exports.
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Exports exceeding imports results in a trade surplus.
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Exports less than imports results in a trade deficit.
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