International Business By David Kang

NAFTA

North, American, Free, Trade, Agreement

NAFTA is a free trade agreement from 3 countries and they are Mexico, America, and Canada.

NAFTA is now called the USMCA

Globalization

Start to operate on a global scale

Moving to other countries to get more sales

Interdependence

Primary Industries

Industry, such as mining, agriculture, or forestry, that is concerned with obtaining or providing natural raw materials for conversion into commodities and products for the consumer.

Secondary Industries

industry that converts the raw materials provided by primary industry into commodities and products for the consumer; manufacturing industry.

Tertiary Industries

The tertiary sector or service sector is the third of the three economic sectors of the three-sector theory. The others are the secondary sector, and the primary sector.

How International Trade hurts Canada

Tariffs

May not get as much then when we traded

Support of Non-Democratic Systems.

How International Trade Benefits Canada

Getting imports that could benefits us

Price differences

Free trade

We can't grow crops in certain seasons so getting the crops we need during the cold harsh seasons

Importing

Receiving goods from other countries

Branch Based Economies

Aspects of microeconomics filter into macro-economics. For example, if you take the study of developing economies, this involves both looking at micro-aspects of development (agricultural markets) and macro-aspects like growth

Exporting

Giving goods to other countries

Value Added

The amount by which the value of an article is increased at each stage of its production, exclusive of initial costs

Forms of doing International Business

Licensing

Permission or permit to do

Franchising

grant a franchise for the sale of goods or the operation of a service

Joint Ventures

A business entity created by 2 or more companies

Foreign Subsidiaries

A partially or wholly owned company that is part of a larger corporation with headquarters in another country

Tariffs

Tariffs are taxes given on trades

Quotas

A fixed share of something that a person or group is entitled to receive or is bound to contribute

Embargos

An official ban on trade or other commercial activity with a particular country

Protectionism

The theory or practice of shielding a country's domestic industries from foreign competition by taxing imports

Currency Fluctuations

Winners

would be the people who would get more out of it

Losers

who get the least amount

Culture

The arts and other manifestations of human intellectual achievement regarded collectively.

Subculture

A cultural group within a larger culture, often having beliefs or interests at variance with those of the larger culture.

Counter Culture

A way of life and set of attitudes opposed to or at variance with the prevailing social norm.

Culture Presentation

Showing that you follow a certain culture by the way you dress, act, speak etc.

Impact of Culture on business

Negotiations

Punctuality

Gift Giving

Meeting

Economic Systems

An economic system is a system of production, resource allocation and distribution of goods and services within a society or a given geographic area

Absolute and Relative Poverty

A condition where household income is below a necessary level to maintain basic living standards

GDP

Gross

Domestic

GDP is a monetary measure of the market value of all the final goods and services produced in a period of time

Product

Absolute and Comparative Advantages

The ability of a party to produce a particular good or service at a lower opportunity cost than another

Political System

A political system is a system of politics and government. It is usually compared to the legal system, economic system, cultural system, and other social systems

The Business Cycle/ Circular Flow Model

Pest Analysis

A measurement tool which is used to assess markets for a particular product or a business at a given time frame

Demographics

Statistical data relating to the population and particular groups within it

Logistics

The detailed coordination of a complex operation involving many people, facilities, or supplies

J.I.T Systems

Just-in-time manufacturing

A method aimed primarily at reducing times within production system as well as response times from suppliers and to customers

Vertical and Horizontal Integration

Vertical Integration

The combination in one company of two or more stages of production normally operated by separate companies

Horizontal Integration

The process of a company increasing production of goods or services at the same part of the supply chain

Product Life Cycle

Consumer Behaviour

Is concerned with understanding both how purchase decisions are made and how products or services are consumed or experienced

Marketing Mix

4 P's

Place

Product

Premotion

Price

2 C's

Consumers

Competition

Direct VS Indirect Competition

Indirect competition is the conflict between vendors whose products or services are not the same but that could satisfy the same consumer need

The term contrasts with direct competition, in which businesses are selling products or services that are essentially the same

SWOT Analysis

A study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats

Microcredit

Lending of small amounts of money at low interest to new businesses in the developing world.

Stakeholders

People whose interest in a company comes through a direct relationship, such as employment, ownership or investment

Ethics and Corporate Social Responsibility

Individuals are accountable for fulfilling their civic duty; the actions of an individual must benefit the whole of society

Benefits of CSR

Easier to access finance

Investors are more likely to back a reputable business

Attract positive attention from the media

Corporate social responsibilities

Globalization

It would help the organization a lot expanding around the world

Pros and Cons on Globalization

Pros

Expanding

Be more well known

Could be more famous in other countries

Cons

Might not be the same

Could not get any sales

lose moneyin the process

USMCA Pros and Cons

Pros

Was not Shut down by Trump AKA NAFTA

Free Trade

Cons

Losing money on most trades

Making farmers run out of business

C.P.TPP

Comprehensive and Progressive Agreement for Trans-Pacific Partnership

A trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.