INTERNATIONAL BUSINESS
CHAPTER 1
NAFTA AND EMERGING MARKETS
NAFTA stands for North American Free Trade Agreement. Canada, United States, and Mexico. After decades Canada and US couldn't agree on the culture examination between the 3 countries.
GLOBALIZATION
The process of which an organization or business start having internationally influence by making international trades.
INTERDEPENDENCE INDUSTRIES
The reliance of two or more nations on each other
fro products. there are three types of interdependence industries.
Primary industries are those that harvest and extract raw materials from nature.
Secondary industries are those that convert the primary industries into products for consumers.
The tertiary industry is the segment of the economy that provides services to its consumers
PROS AND CONS OF
INTERNATIONAL BUSINESS
ON CANADIANS
International business hurts Canadians
in the loss of culture and the raise of
foreign ownership companies.
International business helps Canadians to
variety of products, new markets more jobs,
foreign investments, and new technologies.
CHAPTER 3
CULTURE TYPES
CULTURE
THE KNOWLEDGE, EXPERIENCE, BELIEFS,
VALUES, ATTITUDE, RELIGION, AND POSITION
OBTAINED BY A GROUP OF PEOPLE WHO HAVE
LIVED IN THE SAME AREA OR COUNTRY FOR A
GENERATION.
SUBCULTURE
A CULTURE WITHIN A BIGGER CULTURE
DISTINGUISHED FROM ITS FACTORS SUCH
AS CLASS, AND RELIGION
COUNTERCULTURE
A CULTURE THAT HAS VALUES OR
LIFESTYLES THAT DIFFER FROM THE
CURRENT CULTURE
CULTURE AWARENESS
HSBC
Subtopic
IMPACT OF CULTURE
GEERT HOFSTEDE
INDIVIDUALISM
POWER DISTANCE
MASCULINITY
UNCERTAINTY AVOIDANCE
LONG-TERM ORIENTATION
INDULGENCE
CHAPTER 5
GLOBALIZATION
ECONOMIC CONTEXT
THE MOVEMENT OF GOODS, SERVICES, TECHNOLOGY
AND PEOPLE THROUGHOUT THE WORLD.
EFFECTS OF GLOBALIZATION
POSITIVE
1) OUTSOURCING
2) BETTER JOBS
3) INCREASED PRODUCTIVITY
NEGATIVE
1) UNHEALTHY PRODUCTS
2) CANADIAN JOB LOSS
3) INCREASED POLLUTION
NAFTA EFFECTS
POSITIVE
HAS HELPED CREATE MORE PAYING JOBS IN
CANADA
FLOW OF GOODS ACROSS NORTH AMERICA
TRADE HAS TRIPLED
NEGATIVE
LOST MANUFACTURING JOBS TO MEXICO
TARIFF COULD HARM PEOPLE
CANADIAN COMPANIES SOLD TO INVESTORS
TPP
Subtopic
Subtopic
EU, UN, G8, G20
CHAPTER 2
IMPORTING AND EXPORTING; VALUE ADDED
IMPORTING IS TO BRING A PRODUCT OR SERVICE
INTO A COUNTRY BY A BUSINESS FOR RESELL.
EXPORTING IS TO SEND A PRODUCT OR SERVICE
INTO A DIFFERENT COUNTRY BY A BUSINESS FOR
RESELL.
THEREFORE, IN BUSINESS THERE'S A
VALUE ADDED EACH STAGES. THE
DIFFERENCE OF RAW MATERIALS AND
FINISHED PRODUCTS.
FORMS OF INTERNATIONAL BUSINESS
EXPORTING
LICENSING
FRANCHISE
JOINT VENTURE
FOREIGN SUBSIDIARIES
TRADE BARRIERS
TARIFF
TAX OR DUTIES ARE ADDED
ON IMPORTED PRODUCTS.
PROTECTIONISM
THE PRACTICE OF SHIELDING
DOMESTIC INDUSTRIES FROM
FOREIGN COMPETITIONS THROUGH
TRADE BARRIERS.
QUOTAS
A LIMIT ON THE PRODUCTS
TO BE IMPORTED.
TRADE EMBARGO
A GOVERNMENT-IMPOSED BAN
OF TRADE ON A SPECIFIC PRODUCT
AND COUNTRY OFTEN USED ON
FOREIGN GOVERNMENTS TO CHANGE
THEIR POLICIES.
TRADE SANCTION
ECONOMIC ACTION TAKEN BY A
COUNTRY TO PERSUADE ANOTHER
TO CONFORM INTO AN INTERNATIONAL
AGREEMENT.
CURRENCY FLUCTUATION
WINNERS
IMPORTERS, CANADIAN TRAVELERS,
MAJOR LEAGUE SPORTS IN CANADA
LOSERS
EXPORTERS, CANADIAN TOURISM,
CANADIAN RETAILERS
FACTORS AFFECTING EXCHANGE RATE
ECONOMIC CONDITION IN CANADA
TRADING BETWEEN COUNTRIES
POLITICS
PSYCHOLOGICAL FACTORS
CHAPTER 4
ECONOMIC SYSYTEM
MARKET ECONOMY
FREE COMPETITION AND INDEPENDENT ACT
PEOPLE ARE ALLOWED TO OWN PROPERTY.
PROFIT BELONGS TO THE BUSINESS OWNER.
COMPANIES COMPETE IN TERMS OF QUALITY.
CENTRALLY PLANNED ECONOMY
GOVERNMENT CONTROLS ALL
ELEMENTS OF THE ECONOMY.
GOVERNMENT DETERMINES PRICES AND
AMOUNT OF GOODS AND SERVICES.
OWNERSHIP OF PROPERTIES ARE RESTRICTED.
ALL PROFIT BELONGS TO THE GOVERNMENT.
MIXED ECONOMY
COMBINING GOVERNMENT, AND
PRIVATE ENTERPRISE.
PROPERTY IS OWNED BY INDIVIDUALS.
PROFITS ARE ENCOURAGED BY TAXES.
STRONG COMPETITION AGAINST
CORPORATIONS ARE ALLOWED.
ABSOLUTE AND RELATIVE POVERTY
DEVELOPED COUNTRIES
FIRST WORLD COUNTRIES THAT ARE CHARACTERIZED
BY A HIGH PER CAPITA INCOME OR GROSS DOMESTIC
PRODUCT(GDP).
DEVELOPING COUNTRIES
EMERGING NATIONS IN TRANSITION FROM A POOR
ECONOMY TO A STRONG ECONOMY.
UNDERDEVELOPED COUNTRIES
LEAST DEVELOPED COUNTRIES THAT ARE AT THE
LOWEST OF THE WORLD'S ECONOMIES.
GROSS DOMESTIC PRODUCT
THE TOTAL GOODS AND SERVICES PRODUCED IN
ONE COUNTRY IN ONE YEAR.
ADVANTAGE TYPES
ABSOLUTE ADVANTAGE
THE ABILITY OF A COUNTRY TO MAKE RESOURCES
TO MAKE A PRODUCT MORE THAN OTHER
COUNTRIES.
COMPARATIVE ADVANTAGE
THE ABILITY OF A COUNTRY TO PRODUCE A GOOD
AT A LOWER OPPORTUNITY COST THAN OTHER
COUNTRIES.
POLITICAL SYSTEM
DEMOCRACY
A STATE GOVERNED BY FREE AND FAIR
ELECTION.
CHARACTERIZED BY FREE AND FAIR ELECTION.
POLITICIANS ARE CONCERNED BY GETTING
RE-ELECTION THAN THE GOOD OF THE COUNTRY.
AUTOCRACY
A STATE GOVERNED BY AN INDIVIDUAL OR
GROUP OF PEOPLE.
CITIZENS HAVE NO INFLUENCE ON GOVERNMENT.
AUTOCRACY HAS STRONG MILITARY PRESENCE.
BUSINESS CYCLE
RECESSION
THE ECONOMY SLOWS DOWN AND UNEMPLOYMENT
INCREASES WHICH THE BUSINESSES CLOSES
TROUGH
PRODUCTION AND UNEMPLOYMENT REACH THEIR
LOWEST LEVELS.
EXPANSION
THE ECONOMY STARTS TO GROW AGAIN.
MORE EMPLOYEES, PRODUCTS, AND WAGES.
PEAK
PEAK IS WHERE THE ECONOMY IS AT THE TOP
OF THE BUSINESS CYCLE. THERE IS NO MORE
EXPANSION.
CHAPTER 6
MICROCREDIT
LOANS THAT ARE MAINLY GIVEN TO WOMEN TO
START SMALL BUSINESSES TO HELP THEIR
FAMILY.
STAKEHOLDERS
EXTERNAL
STAKEHOLDER
SUPPLIERS
SOCIETY
GOVERNMENT
CREDITORS
SHAREHOLDERS
CUSTOMERS
INTERNAL
STAKEHOLDER
EMPLOYEES
MANAGER
OWNERS
ETHICS AND CSR
CSR
TO ADVANCE THE WELFARE OF SOCIETY
AND TO ACT GOOD AS A GLOBAL CITIZEN.
ETHICS
A SET OF RULES THAT MANAGEMENT AND
INDIVIDUALS FOLLOW TO MAKE DECISIONS.
BENEFITS OF CSR
BENEFITS
CAN BE USED AS A MARKETING TOOL
HELPS TO ATTRACT EXCELLENCE EMPLOYEES
CRITICISM
USES EMPLOYEES' TIME AND ENERGY
COST MONEY DETRACT FROM PROFIT