Podcast
Questions and Answers
How does international trade contribute to cultural development?
How does international trade contribute to cultural development?
- By standardizing cultural practices globally to ensure uniformity.
- By facilitating the exchange of ideas and cultural customs between countries. (correct)
- By preventing the adoption of foreign technologies in domestic industries.
- By limiting the influence of foreign investment on local businesses.
A Canadian company is considering expanding its operations internationally. What is the primary benefit they can expect regarding market size?
A Canadian company is considering expanding its operations internationally. What is the primary benefit they can expect regarding market size?
- Decreased potential for job creation within the company.
- Reduced competition from local businesses.
- Access to a larger pool of potential customers worldwide. (correct)
- A smaller, more focused customer base.
Which of the following exemplifies foreign direct investment (FDI)?
Which of the following exemplifies foreign direct investment (FDI)?
- A Canadian pension fund investing in bonds issued by the German government.
- A British firm selling products to Canadian consumers through an online retailer.
- A Canadian citizen purchasing stocks of a Japanese company.
- A U.S. company establishing and controlling a manufacturing plant in Canada. (correct)
How does international trade impact the variety of products available to consumers?
How does international trade impact the variety of products available to consumers?
How might a country benefit from new processes and technologies as a result of international trade?
How might a country benefit from new processes and technologies as a result of international trade?
How would you describe portfolio investment?
How would you describe portfolio investment?
Which action would least likely represent a benefit of international trade for a small local business?
Which action would least likely represent a benefit of international trade for a small local business?
What is a potential consequence of automation in the workforce, influenced by international technological advancements, for students entering the job market?
What is a potential consequence of automation in the workforce, influenced by international technological advancements, for students entering the job market?
Flashcards
Variety of Products
Variety of Products
Access to a wider array of goods not available domestically.
New Markets, More Jobs
New Markets, More Jobs
Selling goods internationally expands the customer base, leading to business growth and job creation.
New Processes and Technologies
New Processes and Technologies
Introduction of advanced production methods and technologies from foreign companies.
Cultural Development
Cultural Development
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Foreign Production
Foreign Production
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Portfolio Investment
Portfolio Investment
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Foreign Direct Investment
Foreign Direct Investment
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Portfolio Investment
Portfolio Investment
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Study Notes
- International trade presents several advantages and can significantly benefit countries.
- Success is achieved when one can explain how international business helps a country.
Variety, Prices, and Foreign Markets
- Countries can access a broader variety of products due to international trade.
- New markets and more jobs are created through international trade.
- New processes and technologies become available.
- International trade fosters cultural development.
- Foreign investment is encouraged through international trade.
Variety of Products
- Without international trade, many products would not be accessible in the home country.
- Even when goods are produced locally, people may prefer foreign brands.
- Canada can import bananas from Costa Rica and avocados from Mexico, which it cannot produce.
New Markets, More Jobs
- Selling goods internationally provides access to a larger market.
- If IKEA only sold goods in Sweden, it would only have a market of about 10 million people, compared to the billions of potential customers worldwide.
- Business expansion and job creation are facilitated by selling more goods.
New Processes and Technologies
- Foreign firms may offer new production processes or technologies that lower costs or improve products.
Cultural Development
- Promotes diversity because international trade helps with the exchange of cultural ideas between countries.
- Cultural customs adapt and give clients new ideas, tastes and sounds.
- Canadian musicians like Justin Bieber, Drake, and The Weeknd collaborate with other artists, bringing new sounds to the global music market.
- Jollibee, a Filipino fast-food chain, has expanded to over 1000 restaurants in the U.S., Singapore, Canada, and Hong Kong.
Foreign Investment
- Portfolio Investment is the purchase of Canadian stocks and bonds by foreign firms.
- Foreign Direct Investment (FDI) involves foreign companies controlling some or all of a business's operations.
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