International Trade Advantages and Disadvantages

False (B)

Consumption increases

<p>benefit</p> Signup and view all the answers

<p>Monetary Policy = Adjusting interest rates and money supply Fiscal Policy = Government taxing and spending decisions Absolute Advantage = Producing more with the same resources Comparative Advantage = Producing at a lower opportunity cost</p> Signup and view all the answers

<p>Increased job security in Canadian branch plants (A)</p> Signup and view all the answers

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

<p>By fostering the exchange of culture and ideas between countries.</p> Signup and view all the answers

<p>productivity</p> Signup and view all the answers

<p>Outsourcing = Accessing cheaper raw materials and labor in other countries Revenue Drain = Administration costs apportioned to a Canadian subsidiary Economic Destabilization = Global events impacting Canadian operations Innovation = Exchange of technological know-how between countries</p> Signup and view all the answers

<p>Loss of culture and identity (C)</p> Signup and view all the answers

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

<p>It causes domestic businesses to be more competitive.</p> Signup and view all the answers

<p>Determining a company's marketing strategy (C)</p> Signup and view all the answers

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

<p>Globalization</p> Signup and view all the answers

<p>multidomestic</p> Signup and view all the answers

<p>Global Strategy = Ethnocentric Multidomestic Strategy = Polycentric Transnational Strategy = Geocentric</p> Signup and view all the answers

<p>A view that values both local differences and what's best for the company (C)</p> Signup and view all the answers

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

<p>Economies of scale</p> Signup and view all the answers

<p>Increased national control (D)</p> Signup and view all the answers

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

<p>To track economic trends, analyze countries' financial performance, advise governments, and provide loans.</p> Signup and view all the answers

<p>Corporate Social Responsibility</p> Signup and view all the answers

<p>World Trade Organization (WTO) = Promotes trade liberalization and establishes trade rules The World Bank = Provides loans and grants to poor countries for various development projects International Monetary Fund (IMF) = Tracks economic trends, analyzes financial performance, and provides loans with conditions</p> Signup and view all the answers

<p>Environmental regulation enforcement (C)</p> Signup and view all the answers

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

<p>The conditions often emphasize inflation control and limit government spending, leading to cuts in social programs.</p> Signup and view all the answers

<p>Attracting and retaining excellent employees (B)</p> Signup and view all the answers

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

<p>Using good corporate practices to distract customers from other problems.</p> Signup and view all the answers

<p>disclosure</p> Signup and view all the answers

<p>CSR = Actions of companies that reflect their awareness of social responsibility Ethical imperialism = The belief that certain values are standard across all cultures Cultural relativism = Belief that the values of different cultures should be respected Greenwashing = Using good corporate practices to distract customers from other problems</p> Signup and view all the answers

<p>CSR may reduce profits and distract from maximizing shareholders' wealth (C)</p> Signup and view all the answers

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

<p>Am I being honest? OR Is my choice fair to the company's stakeholders? OR Will my choice enhance the reputation of the company?</p> Signup and view all the answers

<p>Product, Place, Price, Promotion (B)</p> Signup and view all the answers

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

<p>Consumers and Competition</p> Signup and view all the answers

<p>Ownership</p> Signup and view all the answers

<p>Primary Research = Surveys, interviews Secondary Research = Government reports, industry publications</p> Signup and view all the answers

<p>It is often subject to time and cost constraints (B)</p> Signup and view all the answers

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

<p>Culture, language or government regulations</p> Signup and view all the answers

The government's use of interest rates and money supply to manage the economy. They can lower interest rates and increase the money supply to stimulate spending, or raise rates and decrease supply to slow spending.

The government's use of taxation and spending to manage the economy. They can increase spending or reduce taxes to stimulate the economy, or decrease spending or raise taxes to slow it down.

A country has an absolute advantage when it can produce more of a good or service than another country using the same amount of resources. This could be due to better technology, labor, or resources.

A country has a comparative advantage when it can produce a good or service at a lower opportunity cost than another country. This means they give up less of something else to make it.

The value of the best alternative forgone when making a choice. If a country specializes in one good, it gives up the opportunity to produce another.

Buying goods or services from other countries, creating access to a wider range of products for Canadian consumers.

Companies can produce goods at lower costs in other countries, leading to lower prices for Canadian consumers.

Canadian businesses expand their reach to new markets and resources, attracting investment and sharing technological advancements.

Foreign ownership of companies in Canada can lead to job losses when decisions are made to prioritize profits in the home country.

Foreign-owned companies may send profits back to their home country, reducing the economic benefits for Canada.

Countries specialize in producing the goods or services they are best at, leading to improved productivity and a higher standard of living.

International trade can lead to increased competition, which forces businesses to lower prices and improve their offerings. This benefits consumers in the form of better products and lower prices.

International trade can lead to job opportunities that require higher skills and education, leading to higher wages.

Government actions that impact international business and trade, such as setting tariffs, establishing import/export laws, and negotiating trade agreements.

A global strategy where decisions are made centrally in the home country, assuming similar customer preferences worldwide.

A business strategy that adapts products and marketing to local cultures by delegating decision-making to local teams.

Combines the advantages of global and multidomestic strategies, seeking efficiency while respecting local needs.

The integration of economies and cultures through international trade, communication technologies, investment, and immigration.

Taxes imposed on imported goods, increasing their cost and potentially reducing demand.

Government restrictions on the flow of goods into or out of a country.

Agreements between countries to lower trade barriers and promote cooperation.

A situation where moral issues raise questions that can't be answered by applying simple rules or facts.

Companies using their ethical and social responsibility efforts as a marketing tool to attract customers who value such practices.

The idea that certain ethical principles apply universally across all cultures, regardless of local customs or beliefs.

The belief that different cultures have their own ethical standards, and what is considered right or wrong varies from place to place.

A method of solving ethical dilemmas by considering how a decision would be perceived if it were made public.

Critiques of CSR argue that it diverts resources from maximizing shareholder wealth, potentially impacting profits.

Companies may use CSR to create a positive image, but their practices in other countries might not be ethical, creating a disconnect.

Companies can use CSR to attract and retain top talent, as employees are increasingly drawn to organizations with strong ethical values.

The four P's are product, price, place, and promotion. They represent the key elements a company controls to influence consumer behavior in the marketplace.

Consumers and competition are the two major external factors that affect a company's marketing decisions. Understanding these helps companies adapt to market changes and gain an advantage.

Market research is a systematic way of collecting and analyzing information about customers, competition, and the marketplace. It helps companies make informed strategic decisions.

Primary research involves collecting original data specifically for a company's needs. This can include surveys, interviews, focus groups, or observations.

Secondary research uses existing data collected by others, like government reports, industry studies, or news articles. This method is often faster and less costly.

Control, relevance, ownership, and accuracy are the benefits of primary research. The company can ensure the data is tailored to its specific needs.

Cost, time, and bias are potential disadvantages of primary research. Collecting original data can be expensive and time-consuming.

Cost-effectiveness, timeliness, and readily available data are advantages of secondary research. However, it may not always be specific or accurate.

A trade agreement between Canada, Mexico and the United States, replacing NAFTA. It aims to promote trade, economic growth, and job creation between the three countries.

The single currency used by 19 European Union member countries. It aims to simplify trade, reduce exchange rate fluctuations, and promote economic stability.

An organization that aims to regulate international trade, promote economic growth, and resolve trade disputes between member countries.

An international financial institution providing loans and grants to developing countries. It aims to improve their economic and social conditions with the aim of reducing poverty.

An international organization that monitors global financial stability, assists countries with economic challenges, and provides financial advice.

A business approach where companies consider their social and environmental impact alongside their financial goals. This includes acting ethically, taking care of employees, and minimizing environmental harm.

The practice of producing goods in locations where production costs are lowest, even if this means moving manufacturing away from the company's home country.