Podcast Beta
Questions and Answers
What is the primary goal of a business organization?
What is the main characteristic of an international business?
Which of the following is NOT a way to be considered an international business?
What is the term for the reliance of people on each other for goods, services, or ideas?
Signup and view all the answers
What is the primary purpose of trade?
Signup and view all the answers
What type of business makes most of its transactions within the borders of the country in which it is based?
Signup and view all the answers
What is an example of a type of organization that can be considered an international business?
Signup and view all the answers
Which type of investment in Canada has grown from $450 billion in 2009 to $825 billion in 2016?
Signup and view all the answers
A country that imports more goods and services than it exports has a:
Signup and view all the answers
What is a benefit of international trade for a country like Canada?
Signup and view all the answers
When a Canadian business establishes a manufacturing plant in another country, it is considered:
Signup and view all the answers
What is the result when a country's exports are greater than its imports?
Signup and view all the answers
Which of the following is a characteristic of international trade?
Signup and view all the answers
What type of investment involves foreign investors buying stocks and bonds issued by Canadian firms?
Signup and view all the answers
Which of the following is an advantage of international trade for Canada?
Signup and view all the answers
What is the term for a country's trading partner?
Signup and view all the answers
What is the primary purpose of a business organization?
Signup and view all the answers
Study Notes
Business Definition
- A business is an organization that produces goods and services in exchange for money, with the goal of making a profit.
Business Transactions
- A business conducts various transactions, which involve the exchange of goods or services of value.
Domestic Business
- A domestic business is a company that makes most of its transactions within the borders of the country in which it is based.
International Business
- An international business is a company that conducts a majority of its transactions with businesses located in different countries.
- Any business that conducts financial transactions outside of its native country is considered an international business.
- International businesses can be companies, government organizations, or non-profits.
Ways to be Considered an International Business
- Exporting goods to other countries
- Importing goods from other countries
- Investing in businesses in other countries
- Owning retail or distribution outlets in another country
- Owning manufacturing plants in other countries
Trade and Interdependence
- Trade occurs to obtain goods that are not available locally in exchange for goods that are available.
- The reliance of people on each other for goods, services, or ideas is known as interdependence.
Business and International Trade
- A business is an organization that produces goods and services in exchange for money with the goal of making a profit.
- To conduct business, a company must complete various transactions, which involve the exchange of goods or services of value.
Domestic and International Business
- Domestic business refers to a company that conducts most of its transactions within the borders of the country in which it is based.
- International business is a company that uses the majority of the economic system of transactions conducted between businesses located in different countries.
- Any business that conducts financial transactions outside of its native country is considered an international business.
Characteristics of International Business
- Exporting goods to other countries
- Importing goods from other countries
- Investing in businesses in other countries
- Owning retail or distribution outlets in another country
- Owning manufacturing plants in other countries
Trade and Interdependence
- Trade occurs to obtain goods that are not available in exchange for goods that are available.
- Interdependence refers to the reliance of people on each other for goods, services, or ideas.
- A trading partner is a country with which a business develops a relationship.
Balance of Trade
- Balance of trade refers to the difference between a country's exports and imports.
- A country with a trade surplus exports more goods and services than it imports.
- A country with a trade deficit imports more goods and services than it exports.
Advantages of International Trade
- Variety: access to a wide range of goods and services
- Price: lower prices due to increased competition
- Foreign markets: access to new markets and customers
Foreign Investment in Canada
- Foreign direct investment has grown from $450 billion in 2009 to $825 billion in 2016
- Portfolio investment: investment from foreign investors in stocks and bonds issued by Canadian firms
Cultural Concerns
- Loss of culture and identity due to foreign influence, particularly from American culture
- Canada has a system (M.A.P.L.) to protect and promote the Canadian music industry.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Learn the basics of business, including the definition, types of transactions, and international business concepts. Understand how companies operate and make profits.
