BBB4M Introduction to International Business Exam Review (PDF)

BBB4M - Introduction to International Business EXAM REVIEW DAY 1 CHAPTER 1 - WHAT IS TRADE? CHAPTER 2 – TRADE IN THE MODERN WORLD CHAPTER 3 – WHAT IS CULTURE? CHAPTER 1 1. Define business. Business- process of buying selling or trading goods and services 2. What is a transaction? transactions- exchange of goods/services between people or businesses in a deal 3. What is a domestic business? domestic business- a business run in it's local area to it's local consumer base 4. What makes up a domestic market? domestic market- area of origin, local customers, local raw/finished materials, production of goods 5. What makes up a foreign market? foreign market- outside of originally run country, customers around the world, international trade, international logistics (shipping, SKU’s) 6. List the five main ways for companies to participate in international business: 1. Own a retail or distribution plant in a foreign country 2. own a manufacturing plant in a foreign country 3. Export to businesses in another country 4. Import from businesses in another country 5. Invest in a business in another country 7. When is a country considered to be a trading partner with Canada? - when they buy, sell, or trade goods 8. When did trade with Asia become important? - Canada began trading with Japan Asia after WW2 - Japan is known for good cars and electronics - China is recently trading with Canada for cheap well made products 9. Why is Mexican trade now important to Canada? - developed since NAFTA in 1993 - free trade (goods can cross US, MC, CA borders without taxes) - Mexico has been one of Canada’s top trading partners since 2000 10.What is a duty or tariff? - money that is owed to the government for selling/ buying goods or services that come from international borders - Tariffs are able to control independence of countries by allowing them to become more locally developed. (ex. higher tariffs = less foreign competitors) 11.Why do countries impose duties on imported products? Countries impose duties on imported products to make money off of transactions, to control transactions (ex. quantity of items sold), ensure transactions are overseen and safe for the country (ex. military weapons) 12.What are the three emerging markets that Canadian businesses should know *Service, manufacturing, natural resources 13.What is the main product Canada imports from Morocco? - oil seeds, fruit, grain, - meat, seafood - salt, sulfur , earth stone - cement 14. What is globalization? - the process when a business creates international influence and distributes, manufactures, and sells its goods or services around the globe. 15. What is a primary industry? - those that harvest or extract raw materials from the earth 16. Does Canada have a strong secondary industry sector? - Secondary industry is manufacturing, yes canada is strong with mining, extraction of oil, and natural resources like timber 17.What is another name for tertiary industries? - service sector 18.What is a branch-plant economy? - country that hosts many branch plants from other countries 19.Why is Canada considered to have a branch-plant economy? - Canada has many foreign businesses in many different industries such as clothing, food, etc. 20.How do secondary industries add value to a product? - quality or quantity of product - transformation of raw material to finished product 21.How do tertiary industries add value to a product? - marketing and sales - add value to products - create jobs 22.What are four ways that international business helps Canadians? - 1. variety of products 2. cheaper prices 3. new processes / technology 4. create jobs 5. create ties with foreign countries 23.What does FDI stand for? - FDI- Foreign direct investment 24.How does portfolio investment help Canadian business? - protects investors 25.What does R&D stand for? - research and development 26.Why is it important to retain an R&D department in Canadian businesses? - gather data of strengths and weaknesses to improve - 27.What are the two main ways that international business hurts Canadians? - local businesses have more competition - loss of culture / increase of foreign ownership of Canada 28. Why is U.S. culture so dominant in Canada? Provide two reasons? - the US is very close trading partner of Canada - the US is very close to Canada and similar due to things such as language, 29. What percentage of music played on Canadian radio stations should have Canadian artists? - at least 35% between 6a.m. - 6p.m. monday - friday 30. What does MAPL stand for? - Music Artist Performance and Lyrics 31.What percentage of Canadian corporations are foreign owned? - 32.What are five problems associated with foreign ownership of Canadian Companies? - royalties to foreign countries - weaker canadian dollar - loss of culture - domestic businesses suffer - more pollution CHAPTER 2 1. What is importing? Give an example of an import item. - goods that are shipped across borders (ex. spices) 2. State five of Canada’s major imports. - vehicles - machinery - electronics - mineral fuels - pharmaceuticals 3. What is exporting? State an example of an export product. -goods that are shipped out of a country across borders (ex coffee) 4. State five of Canada’s major exports. - oil - gold - lumber - maple syrup - aircraft materials 5. Explain the concept of value added. - process of making products worth more by making it a certain way, marketing, or using better materials with products 6. Define licensing agreement. Give an example. - a contract between the copyright holders of software to people who want to produce, and distribute these goods. 7. Define franchise. - authorization to run a franchise from franchisor to franchisee to produce and distribute goods - franchises have strict rules on products, marketing and how the business is run - franchisees have less control of the business 8. What is included in a franchising agreement? - marketing, product development, brand reputation, store layout, customer base, employee base 9. Name five Canadian-owned franchises. - pet valu, mr lube, booster juice, pizza pizza 10.Give an example of a Canadian joint venture. - Kellogs and Wilmar 11.What is a foreign subsidiary? Give two examples of Canadian-owned foreign companies. - a business that is operating overseas that is mainly from a different country. 7-eleven 12.What is a tariff? - taxes on imports or exports 13.Define protectionism. - restriction of imports from foreign countries to protect domestic businesses 14. What is a quota? - limitations 15.Compare and contrast tariffs and quotas. similar- involve imports or exports different- tariffs are money, quotas are limits 16.Define embargo. - a ban of trade 17.Explain how standards can be a trade barrier. - One of the trade barriers U.S. companies may face is a technical barrier to trade (TBT). Technical regulations and standards specify a product's characteristics (such as size, functions, and performance), how it is labeled or packaged, and testing and certification requirements before it can enter a country's market 18. What is an exchange rate? - conversions of the value of currency 19.If CAD$1.00 = USD$0.89, how much would CAD$1,000 be worth in U.S. dollars? - $890 USD 20. Who are the winners and the losers of a high Canadian dollar? - Winners- importers, canadian travellers, major league sports teams - Losers- exporters, canadian tourism, canadian retailers 21.What factors influence the exchange rate? - interest rates - inflation - supply and demand - geopolitical stability 22.What is speculation? - forming a theory about a subject without evidence 23.Why are time zones considered a barrier to international business? - different times of meetings - employees work at different time CHAPTER 3 1. What is culture? - customs, traditions, way of life for different people 2. How do we learn our culture? - talking about it, research, reading books 3. What might happen when a person from a foreign culture moves to Canada? - language barriers, different style of life, different foods, different currency, different laws 4. Name a subculture in Canada. - Indigenous people 5. Define counterculture. - ways of life that oppose the culture of the host country 6. Explain how the religion of Islam has determined Saudi Arabian culture? - traditions and customs that are learned from a young age in schools. Prayer times affect meeting hours and social events. Pilgrimages can affect business in good and bad ways 7. How has Saudi Arabia’s climate influenced Saudi culture? - style of dress, working conditions, foods that they eat/sell. times of day bc of more daylight 8. What are the two primary religions in Japan? - Shinto and Buddhism 9. What are two aspects of Japanese culture that are different from Canadian culture? - tipping is not normal - languages are different - religions are different - foods and ways of life are different 10. Is a high degree of cultural awareness of foreign markets necessary for every foreign investor? - No onl;y businesses with major operations in foreign countries need to have a high degree of cultural awareness 11.What four things should a business owner consider before spending a great amount of money? - GDP, unemployment rate, inflation, cultural differences 12.What is the major service that Canada exports? - commercial services, tourism 13.What might be a cultural savings goal of a Japanese family with one or more children? - money for a Kimono (dress for special occasions) 14. How does culture affect financial services? - buying and selling of certain goods or services - times of business - ways of business 15.What are cultural norms? - things that are normal day to day things that people do everyday - all countries have slightly different norms - 16.What are five pieces of labour legislation that reflect the cultural norms in Canada? - 17.What are the four major issues that Canadian businesses should be aware of - 18.What does the term “blood diamond” mean? Would you buy a piece of jewellery without documentation? - a blood diamond means that someone had to die for the diamond. No, I would not buy jewelry that is blood. 19.What are the three major components of a “meeting culture”? - symbols, languages, norms, artifacts, values 20.Who is more likely to be late for a meeting: a monochronic negotiator or a polychronic one? - polychronic are more likely to be late 21.What problems could result if two people with different spatial perceptions were in the same meeting? - person with larger spatial perception may be offended by person with smaller spatial perception 22.How would you indicate “no” in Albania? - nod their head to mean no 23.What are five questions you might ask about the business etiquette expected by people in another country? - what are the best attitudes, religions, beliefs, times do they use - are they polychronic or monochronic - what are the proper business attire for men and women - how do meetings go - what is perceived as respectful and disrespectful - how do you properly greet people (men and women) 24. What are Geert Hofstede’s five cultural dimensions? Cultural dimensions (identified by Geert Hofstede) ▪ power distance (PDI)—how the difference in power between people is perceived ▪ uncertainty avoidance (UAI)—how do various cultures adapt to change ▪ masculinity versus femininity (MAS)—the degree to which a culture values assertiveness, competitiveness, ambition, and the accumulation of material goods ▪ individualism versus collectivism (IDV)—the extent to which people are expected to make their own decisions regarding their choice of education, job, etc. ▪ orientation (LTO)—the degree to which cultures value short- or long-term goals - 25. What is a feature of cultures that have a high score in the uncertainty avoidance dimension? - rely on their set rules and ways of doing things 26. What is a feature of highly individualistic cultures? - direct communication 27. What is the highest-ranking cultural dimension for Mexicans? - Uncertainty Avoidance 28. What is the lowest-ranking cultural dimension for Mexicans? - communications 29. What is the highest-ranking cultural dimension for Canadians? individualism 30.What is the lowest-ranking cultural dimension for Canadians? - long term orientation BBB4M - Introduction to International Business EXAM REVIEW DAY 2 CHAPTER 4 – ECONOMICS AND POLITICS CHAPTER 5 – INTERNATIONAL TRADE AGREEMENTS AND ORGANIZATIONS CHAPTER 6 – SOCIAL RESPONSIBILITY AND NGOs CHAPTER 4 1. What are the four questions all economic systems answer? What should the country produce and in what quantities? How should scarce resources such as labour and capital be allocated? How should the goods and services be distributed throughout the country? What should be the price of goods and services? 2. What should the country produce and in what quantities? The quantity of product where supply equals the amount demanded. 3. How should scarce resources such as labor and capital be allocated? - local supplies to prevent pollution and be time efficient 4. How should the goods and services be distributed throughout the country? - wholesale, retail, e-commerce 5. What should be the price of goods and services? - whatever the consumers are able and willing to pay. this depends on the market, inflation, geopolitics etc. 6. Define market economy. - aka. capitalism, an economic system determined by free competition, in which businesses, consumers, market forces and self interest determine what gods are created and sold An economic system defined by free competition, in which businesses, consumers, and government act independently from one another, and market forces and self-interest determine what goods are created and sold. 7. Describe how a market economy deals with private property, profit, and competition. - A key aspect of a free market system is the concept of private property rights, which means that business owners can expect to own their land, buildings, machines, etc., and keep the majority of their profits, except for taxes. The profit incentive is a key driver of any free market system. Corporations and people are encouraged to own private property. Profit belongs to business owners and they choose how to spend it. Companies compete in terms of quality, services, price, reputation, and warranties. 8. State three advantages and disadvantages of a market economy. 9. Define a centrally planned economy. An economic system in which the government controls all elements of the economy, including prices, wages, and production. 10.Describe how a centrally planned economy deals with private property, profit, and competition. Ownership of property is restricted. All profit belongs to the government; all workers are employed by it too. Competition is limited; the government determines quality, price, style, and amount of goods and services. 11.State three advantages and three disadvantages of a centrally planned economy. 12.Define a mixed economy. An economic system that sits between a market economy and a centrally planned one, combining government intervention and private enterprise. 13.Describe how a mixed economy deals with private property, profit, and competition. Property is owned by individuals, corporations, or the government. Profit is encouraged but taxed to support government projects and programs. There is strong competition among corporations; the government may also be a competitor. 14. State three advantages and three disadvantages of a mixed economy. 15.Describe democracy. A state governed by all eligible members of the population through elected representatives. 16.What are the drawbacks of a democracy? Politicians may be more concerned with re-election than the good of the country. 17.Describe autocracy. A state government by a single individual or s small group of people with unlimited power. 18.Name four countries that have an autocratic government. North Korea, Russia, China, and Saudi Arabia. 19.What are the characteristics of an underdeveloped country? Also known as the least-developed or third-world countries, nations that are at the lowest level of the world’s economies. 20.What are the characteristics of a developing country? Also known as emerging or second-world countries, nations in transition from a poor economy into a prosperous one. 21.Name three developing countries. Kosovo, Lebanon, Laos, and Kyrgyzstan. 22.What are the characteristics of a developed country? Also known as industrialized or first-world countries, nations that are characterized by a high per capita income or strong gross domestic product. 23. State the characteristics of a recession. The economy is slowing down. There is a decline in consumer spending, an increase in unemployment, and businesses contract or close. 24. State the characteristics of expansion. The economy begins to grow again. Employment, wages, production, and profits expand. 25.Draw and label the business cycle. 26. Define absolute advantage. Provide an example. The ability of one country to use its resources to make a product or service more efficiently than other countries. 27. Provide an example of specialization. A tall person specializes in apple picking as they can reach higher, while a shorter person specializes in strawberry picking due to their height. 28. Define opportunity cost. The value of what is foregone, or the cost of giving something up to get something else. 29.Define comparative advantage. The ability of a country to produce a good at a lower opportunity cost than other countries. It is the foundation for specialization and trade. 30.State six ways the government has a role in international trade. Establishing import and export laws. Setting tariffs. Maintaining membership in trade organizations and negotiating trade agreements. Determining monetary policy, including currency exchange rates. Determining fiscal policy, including taxation laws. Building infrastructure, such as roads and sewer systems. 31.What is the purpose of the Government of Canada trade offices found throughout the world? - raise ontarios profile and build commercial relations in key global markets 32.What services does a consulate provide? - passports, birth certificates, foreign visas to work or study 33.What is Team Canada? 34.What are the purposes of trade missions? - access key markets, have government support, opportunity to network, get to know target market and streamline products for that target market 35.What does a lobbyist do? Attempts to influence government officials and persuade them into endorsing public policy favourable to them. 36.State four examples of lobbyist groups in Canada. - CHAPTER 5 1. What is globalization? Globalization is the movement of goods, services, technology, investment, ideas, and people throughout the world. 2. State four positive effects of globalization. Outsourcing Improved human rights Better jobs Lower prices 3. State four negative effects of globalization. Lost canadian jobs Spread of disease Unhealthy products Increased pollution 4. State and define the three types of globalization strategies. Global strategy: Regarding the world as one big market, where all people want the same product and will respond to marketing in a similar way, taking advantage of economies of scale. Multidomestic strategy: Customizes products, services, and marketing for the local culture, and local management is most capable of determining what is best for the local subsidiary. Transnational strategy: Combining the elements of the previous two. Respects needs of the local market, while maintaining efficiencies of a global strategy. 5. What is a trade agreement? An enforceable treaty between two or more countries that involves the movement of goods and services, elimination of trade barriers, establishment of terms of trade, and encouragement of foreign investment. 6. What is NAFTA? A trade agreement launched in January 1994 between Canada, the US, and Mexico. It created the world’s largest free trade area, and set rules surrounding movement of goods, services, and investments across North America, and also eliminated tariffs and other barriers, promoting fair competition. 7. State and explain three advantages of NAFTA. Helped create higher paying jobs in education, engineering, and banking sectors in Canada. Allows freer flow of goods and services in north america while providing better access to raw material, talent, capital, and technology. Trade has tripled between the three members since it was created. 8. State and explain three disadvantages of NAFTA. Manufacturing jobs have been lost to Mexico, where labor costs are cheaper. Many Mexican farmers couldn’t compete and lost their livelihoods without tariffs. Canadian companies sold to foreign investors. 9. Name four trade agreements Canada has signed. Canada-Korea Free Trade Agreement (CKFTA) Canada-Panama Free Trade Agreement (CPAFTA) Canada-Peru Free Trade Agreement (CPFTA) Canada-Ukraine Free Trade Agreement (CUFTA) 10.What is the purpose of the European Union? It is a trade agreement in Europe between 27 European countries, with its own currency, flag, anthem, and common financial, security, and foreign policies. 11.Where are the headquarters for the EU? Brussels, Belgium. 12.What are the three governing bodies of the EU? What is each one’s purpose? 13.State five advantages of the euro. Most used in EU countries. Decreased risk of exchange-rate fluctuations. Price Transparency. Elimination of transaction costs. Increased markets. 14.State two disadvantages of the euro. Loss of national control. Loss of tradition. 15. What is the WTO? An international organization established in 1995 that promotes trade liberalization throughout the world. It has over 150 member countries. 16.What are the three purposes of the WTO? Act as a forum for negotiations. Provide a set of rules that have been negotiated and signed by the governments of member countries. Offer a forum for dispute settlement. 17.What are the advantages of the WTO? 18. What are the criticisms of the WTO? 19. Explain why the WTO is vital to Canada. 20.What is APEC? A trade organization created in 1989, which tries to open and free trade among its members, increase prosperity and economic growth, and develop the Asia-Pacific community. 21.Describe the size of APEC. It unites twenty-one of the countries surrounding the Pacific Ocean to co-operate on regional trade. 22.State and describe APEC’s three pillars. 23.Describe how APEC has benefited its members. 24.What is the purpose of the G8? Discuss macroeconomic issues such as economic growth, trade liberalization, and helping developing countries. 25.Name the countries involved in the G8. France, the US, Canada, Great Britain, Italy, Germany, Japan, and Russia (Now removed, making it the G7) 26.What is the purpose of the G20? Provide a discussion forum for the major economies of the world beyond the G8. Focusing on economic and employment growth, elimination of trade barriers, reforming financial institutions and regulations, and restructuring global financial organizations. 27.Name ten countries that are part of the G20. Turkey, Argentina, Brazil, Mexico, China, Saudi Arabia, South Africa, India, Australia, and South Korea. 28.Describe what the OECD does. Promotes the advancement of democracy and market economies. They work together to eliminate bribery, money laundering, and fraud, and to create a code of conduct for multinational companies. 29.What is the World Bank? What two institutions make up the World Bank? An organization with 186 countries which provides monetary and technical aid for developing countries. It is made up by the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA). 30.What is the purpose of the World Bank? Provides loans and grants to assist with education, health, infrastructure, farming, environmental issues, resource management, and other economic concerns. 31. Describe the purpose of the IMF. Promote financial stability, prevent and solve economic crises, encourage growth, and assuage poverty by encouraging countries to adopt responsible economic policies, lending money to emerging and developing countries, and providing technical training in areas such as banking regulations and exchange rate policies. CHAPTER 6 1. Define corporate social responsibility. The duty of a company’s management to work in the best interests of the society relies on its resources to advance the welfare of society, and to act as a good global citizen through its policies. 2. Provide four examples of social responsibility. Making charitable donations. Treating employees ethically. Being environmentally conscious. Ensuring safe working environments. 3. Describe how a company benefits from social responsibility. Can be used as a marketing tool. Dissuades governments from implementing regulations that could interfere with business. Helps companies attract and retain exceptional employees. 4. What are two criticisms of social responsibility? Costs money, detracts from profits. A company may act ethically in one country, but not in another. 5. State ways a company can ensure it has consistent social responsibility practices across countries. 6. What is the purpose of a stakeholder analysis? Used to determine which group’s interests are most important when a company is faced with an ethical dilemma. 7. Explain the difference between primary and secondary stakeholders. Primary stakeholders directly affect the company and its profitability, while secondary stakeholders have an impact on the company, but do not directly affect its success or contribute to profitability. 8. Define business ethics. A set of rules or guidelines that management or individuals follow when making decisions facing their company. 9. Define ethical imperialism. State an example. A view of culture based on the idea that there are certain universal truths or values that are standard across all cultures; if something is wrong in one country, it's wrong in every country. A person’s ethics are not situational. 10. Define cultural relativism. State an example. A view of culture based on the idea that a culture’s different values should be respected, as the ethics of one culture are not better than those of another. For example, when in Rome, do as the Romans do. 11.Define pollution. State examples. 12.Define resource depletion. State examples. 13.Describe three specific examples of environmental damage caused by businesses. Sustainable development, meeting human consumption while maintaining the environment, is a critical issue for businesses. Many companies have been responsible for pollution and resource depletion. Companies and governments often resist environmental plants that will impede economic growth. 14.Define corruption. State an example. The involvement in illegal activities, such as bribery and fraud, to further one’s business interests. 15. List the different terms by which bribery and corruption might be known. 16.Which of these is illegal in Canada? 17.Define dumping in a business context. State an example. Selling products in a foreign country below the cost of production or below the price in the home country. 18.What is microcredit? The granting of very small loans to spur entrepreneurship, is one way that poverty is being addressed. 19. Why are women targeted to receive microcredit? So that they can start small businesses to support their families. 20. What is Kiva? 21.What is an NGO? Give five examples. Non-profit organizations with a service and development focus that are composed mostly of volunteers, and are predominantly funded through charitable contributions. 22.Explain how Free the Children has helped youth around the world. - lower chid poverty and give children better rights such as education, water, sanitation, and not permitted to have child labour 23. What is the purpose of fair trade? - The Fairtrade Standards aim to provide a structure for sustainable agricultural production, protect workers' rights, and distribute power in trade relations more equally between producers and buyers. 24. What are the benefits of fair trade? - protect environment, reduces child labour, improves ethics, gender ewaulity, developement of community, safe working conditions. 25. What is Canada’s fair trade organization? - Fairtrade Canada 26. Describe how Ten Thousand Villages works. - it is a place where you can explore and connect with your global villages 27. What is the ISO? What are the ISO 9000 and the ISO 14000 series? - ISO 9000 is concerned with quality management and meeting customer quality requirements, achieving control of processes, and encouraging continuous improvement while ISO 14000 is concerned with environmental management. Both standards outline a solid, traditional management approach. 28. What are the advantages of ISO certification? - customer satisfaction, increased efficiency, customer focus, efficiency in processes, lowers costs to improve revenue BBB4M - Introduction to International Business EXAM REVIEW DAY 3 CHAPTER 7 – MARKETING CHAPTER 8 – LOGISTICS CHAPTER 9 – CANADA AND INTERNATIONAL BUSINESS CHAPTER 7 1. What is marketing? The sum total of all activities involved in getting services and goods from the original producer to the consumer. 2. What are the two types of data used in market research? Primary Data: observed or collected by a company and relates to its problems and needs. Secondary Data: collected by someone other than the company it is gonna be used by. 3. What three ways might a product be modified to make it more suitable for a foreign market? Packaging: weights, colours, and legal, labelling, and language requirements. Ingredients. Style. 4. What are the two major marketing strategies that can be used to enter a foreign market? Centralized: marketing strategy in which all of a company’s manufacturing and marketing is performed in one location. Decentralized: marketing strategy in which companies set up in different locations and/or countries or expand there in any way, rather than doing everything in one place. 5. List and describe five methods that a business could use to enter a foreign market. E-Commerce: Using the internet and the media to spread info about the company or business offered to consumers in hope of it being noticed and gaining attention, to finally sell the company’s offered products through either a traditional retail location or e-distribution. Branch plants: Branch plants can be expensive, but they’re one of the most effective ways to expand a company, while also making it easier and cheaper to ship products to consumers, there won’t be any issues with tariffs and importing regulations, and making modifications to products will be easier. Licensing agreements: a contract giving someone the right to use a trademark or patent. Trade show: Groups of distributors and manufacturers that set up display booths and/or rent space to showcase products that will be sold to retailers for consumers to buy. Acquisitions: Buying the competing company in order to either make it close down, or use it for your own company’s benefit by expanding into its market. 6. What are three types of licensing agreements? Manufacturing agreements: the rights to manufacture a product Distribution agreements: the rights to sell a product Franchising agreements: granting the ownership or contribution of a company to a local franchise. 7. What is the role of a foreign sales agent? Sales Agent: Hiring a person to market a company’s product to potential customers and consumers. Usually done in other countries. 8. At what point would a manufacturing company need to consider a branch plant in one or more of its foreign markets? When they have enough money to do so, as it can be expensive, and when they decide that it will be beneficial for the company or business to expand elsewhere. 9. What are four factors that would increase the price of a Canadian-made product in a foreign market? Labor Costs. Shipping Costs. Duties and Tariffs. Legal Costs. 10. What are three ways to advertise and promote your product in foreign countries? Use existing ads. Translate ads. Create new ads. 11. What is ethnocentrism? Believing that your own culture and its beliefs and values are right, and incorporating them into your business, thinking that other value systems aren’t important. 12. What is demographic information? Statistical data about various aspects of the population. 13. List three types of demographic information. Age, gender, religion. 14. What is discretionary income? Left over money that can be saved, or spent on luxury items, entertainment, or whatever the person wants. 15. What are the two types of competition? Direct: Businesses that offer almost identical products as another business are direct competitors. Indirect: Competition between businesses that sell different products, but still compete as consumers spend money on both. 16. List and describe four ways that a company might have a competitive advantage. Lower production costs: the more products you make in one factory with the same labourers, the cheaper it will be. Lower distribution costs: companies with factories in their target market have lower costs. Product differentiation: difference in flavour, quality, packaging, scent, etc. Brand equity: The number of consumers that can identify the brand. 17. What is meant by economies of scale? The more products you make in one factory with the same labourers, the cheaper it will be. 18. List three ways that one product can differentiate itself from another. –You can differentiate your product by size.... You can differentiate your product by origin.... You can differentiate your product by branding.... You can differentiate your product by your packaging.... You can differentiate your product by adding a simple feature or ingredient. CHAPTER 8 1. What is logistics? - overall process of managing how resources are acquired, stored, and transported to final destination 2. What are the three types of logistics? - military, production, business 3. In terms of logistics, why did Napoleon’s Russian campaign fail? - The French supply system could not cope with the demands of the advance from Smolensk to Moscow. The need to protect the lines of communication and flanks meant that Napoleon did not have enough troops to win a decisive victory by the time that he managed to bring the Russians to battle at Borodino 4. How do production logistics help manufacturing businesses? - ensure that all materials, resources are available at the right times 5. What is meant by the supply chain? - sum total of all activities involved in moving raw materials processed goods and finished products into an organization and moving the semi finished products to consumers 6. What are the links in the supply chain? - Inventory management - Storage - Cash flow - Supplier co-ordination - Information processing - Physical distribution 7. What is third-party logistics, and what is its purpose? - A third-party logistics company (3PL) is a service provider that either arranges or handles a variety of supply chain functions for a business. These functions can include brokering, shipping, storing, or packing a company's freight, as well as supply chain strategy and access to technology. 8. How do point-of-sale terminals help inventory management in a retail store? - A POS makes it easy to keep track of the inventory your store has. It allows you to manage your inventory in real-time and to know the number of products you own over a given period. 9. How does just-in-time inventory control reduce the need for storage space? 10. Outline the purposes of cash-flow management. - Cash flow management is a set of practices and strategies to help you track, analyze and improve the financials of your business. The goal of cash flow management is to get you in the “green,” also known as positive cash flow, where you have more money coming in than going out. In commerce and industry, cash is king. 11. What are two other terms used for supplier management? - What are Forms of Supplier Management? - - Outsourcing - The strategic use of outside resources to perform activities that were previously handled internally by the company itself. - - Near-sourcing - Sourcing particular business functions or services, such as telemarketing, to a company in a foreign country that is relatively close in distance. - - Insourcing - A company’s establishment of a specific division within the business, such as an advertising department or - customer call center, to handle a function that is normally outsourced. 12. Name five reasons for the increase in the complexity and speed of business across the global supply chain. - Canadian businesses must stock goods from around the world to compete with online retailers. - Retailers must guarantee a unique selection of products by visiting international trade shows or accessing online distributors. - Increase in foreign ownership of Canadian manufacturers means it is more difficult to buy Canadian-made goods. - Canadian businesses must remind shoppers that they sell and produce Canadian goods. - 13. What are the two categories of physical distribution? - - What is Physical Distribution? - Inbound distribution - The process of receiving goods that are sent to a company. - - Receiving process - The established system that a receiving manager uses to monitor and track goods arriving at a business. - - This process normally includes: inspecting containers for obvious physical damage, making sure that all of the containers have arrived, assigning stock numbers (SKUs) to new items, and recording the location of each item (for example, warehouse, selling floor). 14. What is the FOB point? - Free on board point 15. What do the following acronyms stand for? a. DDP- Delivered Duties Paid b. CFR- Council on Foreign Relations c. FOB- Free on Board d. FCA- Financial Conduct Authority e. CIP- Carriage and Insurance Paid 16. The selection of a carrier depends upon what five factors what is being shipped weight of the shipment speed of delivery required cost of the carrier destination of the shipment 17. What are the four major methods of transportation? Motorized carriers Rail freight Ocean freight Containerization 18. Why would a company decide not to use an ocean freighter to ship its product? Because it takes a long time and the ships won't go door to door 19. What are five supply chain issues that might affect international shipments? Reliability Oil prices Unstable political climate Piracy Optimization 20. Where is most pirate activity centred? – 21. What does optimization mean? – 22. What is the Canadian Trade Index? – 23. What is the role of a customs broker? – 24. What are Canadian Company Capabilities? – 25. Describe five responsibilities of the Canada Border Services Agency. – CHAPTER 9 1. What is a competitive advantage? - a condition or circumstance that puts someone or something in a higher position to succeed 2. Why is Canada’s banking system the best in the world? - One of the reasons for Canada's financial fortitude is that, from the beginning, the country has featured a system that favours a relatively small number of well-capitalized, well-regulated national banks with many branches. - - 3. Name the Big Six Canadian banks. - Osler acted for Canada's six D-SIB banks which are Royal Bank of Canada, Bank of Montreal, The Bank of Nova Scotia, The Toronto-Dominion Bank, National Bank of Canada and Canadian Imperial Bank of Commerce. 4. What products and services does the cultural industry include? - The main components of this sector are the publishing industries (except exclusively on Internet), including software publishing, the motion picture and sound recording industries, the broadcasting industries (except exclusively on Internet), the telecommunications and related services industries (i.e., telephony 5. Why did Canada’s technology industry become successful? - The world's largest technology companies call Canada home. With access to highly skilled Canadian talent, industry expertise, a strong R&D culture and tech ecosystems in major cities, global tech companies find Canada a prime destination. 6. Define foreign investment. - Summary. Foreign investment is when investors purchase an asset in a foreign country, resulting in the cash flow consideration transferring from one country to the next. Foreign direct investments (FDIs) are long-term physical investments, such as plants, toll roads, and bridges within foreign countries. 7. Why is foreign investment important for a country? - FDI can also promote competition in the domestic input market. Recipients of FDI often gain employee training in the course of operating the new businesses, which contributes to human capital development in the host country. Profits generated by FDI contribute to corporate tax revenues in the host country. 8. What are the disadvantages of foreign investment in Canada? Disadvantages for FDI in Canada: Strong exposure to the United States' economy, namely to exports to the US. Sensitivity to international commodity prices and to the government revenues that depend on oil. High household debt (186.2% of disposable income) A drop in productivity in manufacturing industry. 9. Why would a company choose to invest in a foreign country? State the disadvantages of this investment. - Investing internationally provides diversification and potential for growth, especially in emerging markets, but it comes with a set of risks. Among them, the main ones are the higher costs, the changes and fluctuations in currency exchange rates, and the different levels of liquidity in markets outside the U.S. 10.Explain how Canada provides a supportive business environment for foreign investors. - The opportunities for global companies to grow in Canada are limitless. Offering preferential access to global markets, a highly skilled workforce and a stable, welcoming business environment, Canada is the place to be. 11.Explain how Canada is a gateway to the rest of the world. - Canada as a Gateway to North America and Global Markets - Canada provides an opportunity for access to global markets given its openness to trade and free trade agreements, immigration, access to highly skilled talent, ease of doing business, and stable banking and political system 12. What are the advantages of the St. Lawrence Seaway? - The St. Lawrence Seaway has tamed the St. Lawrence River, enabling ships to sail from Lake Ontario to the Atlantic Ocean since 1959. The resulting deep-draft inland navigation system is the longest in the world, extending 3,700 kilometers (2,300 miles) into the North American heartland. 13. Name the three major railway connections owned by Canadian railway companies. - Canadian National Railway ( CN ) and Canadian Pacific Railway ( CPR ) are the two dominant freight rail operators in Canada and are both Class I railways, meaning their revenues exceeded $250 million in the past two years. - VIA Rail 14. Explain why Canada has excellent employees. - Diversity and Inclusion: Canada is multicultural and promotes diversity, making it a welcoming place for immigrants and international workers. Work-Life Balance: Many Canadian employers value work-life balance and offer generous vacation and parental leave policies. - rights, safe work conditions, time off 15. Explain why Canada is a great place to live. - healthcare - opportunities - jobs - rights - democracy - safety - good alue for dollar - diverse 16.Define productivity. - getting work done 17.How can productivity be improved? - AI or robots - assembly lines - machinery - more people working 18.How is productivity measured? - productivity is measured in GDP 19.Why is Canada’s productivity lower than that of the United States? - Some of the challenges are longstanding. Canada has been a laggard in adopting information and communication technology (ICT) and meaningfully slower growth within this area explains much of the growing U.S.-Canada productivity gap in the two decades prior to the pandemic. 20. State five ways Canada can improve its productivity. - Three elements contribute to stronger productivity: capital intensity—giving workers better physical tools like machinery, and using new technologies to improve efficiency and output. labour composition—improving workers' skills and training. multifactor productivity—using capital and labour more efficiently 21. How many times might you change jobs before you are forty? - depends on the person 22. Explain how companies are changing because of global competition. - Global competition forces companies to compete for customers and employees on an international scale. KFC and Facebook are examples of how international companies compete on all levels, including pricing, promotion, distribution, operations, and personnel. This is the crux of global competition. 23. What skills will you need to work in the global marketplace? - respect, communication, punctuality, salesmanship, marketing, productivity, 24.How are workplaces changing to meet the needs of the global employee? - sic days, benefits, compressed work weeks, overtime hours, etc. 25.How are careers changing because of the global marketplace? - more computerized and job loss due to computers and AI

BBB4M Introduction to International Business Exam Review (PDF)

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