Chapter+1.docx

Chapter 1 6. a) domestic – because the products are bought in Canada and are also sold in Canada. b) International – because the products are bought in Canada, but are sold in the States. c) Domestic – the product is made and sold in Canada. d) International – the product is made in Thailand and is...

Chapter 1 6. a) domestic – because the products are bought in Canada and are also sold in Canada. b) International – because the products are bought in Canada, but are sold in the States. c) Domestic – the product is made and sold in Canada. d) International – the product is made in Thailand and is sold in Canada and Great Britain e) International – because the person is living in Australia and is investing in a Canadian company. 7. 3 ways I am dependent on foreign business is I buy products that are made in other countries such as food, Canada relies on other countries buying our products to keep our economy stable which benefits me. 11. Canada is a trading nation because they do a lot of trading with other countries, Canada is United States largest trading partner, Canada is also a part of the NAFTA, Canada trades a lot of primary resources with other countries such as oil, coal, and lumber. 14. Globalization has increased dramatically over the past few decades because, there are more efficient ways of transporting goods to other countries, communication technology has also increased over the years making it easier to communicate between countries. International trade has also increase over the years and many trade agreements have been created between a variety of countries. 15. A foreign Direct Investment is investment in a company that is located in a different country then the investor which allows them to control some or all of the businesses operations where portfolio investment is when you buy stocks, bonds or other financial instruments that are issued by Canadian firms by foreigners which doesn’t allow you to control the business operations. 18. Japan- Canada trades with Japan because they are known for high quality electronics and automobiles. United States – Because they are located so close to Canada it makes it easy to trade products. China – they can make products inexpensively England – because English people founded Canada so they have always had ties to Canada Mexico – Mexican products can now enter Canada duty free 19. International Business helps Canadians because it creates jobs, and also increases the economy and makes it more stable. Chapter 2 13. Licensing Agreement Joint Venture Foreign Subsidiary Advantages Faster growth for the company Flexibility Operating efficiencies Allows you into the country Shared financing Technology Risk reduction Managerial expertise Allows a branch of a company into another company and to be run as an independent business Can save on distribution costs Provide access to well educated workforce Disadvantages Costs money Have to a royalty for each product sold 50% of them fail Take longer to negotiate and establish Lots of research needs to be made Don’t always work out. Have to make the target that is set for them. 14. The losers a of a high Canadian dollar are exporters, Canadian tourism, and Canadian Retailers 15. The winners of a high Canadian dollar are, importers, Canadian Travelers, and major league sports teams in Canada.