an industry tat requires a substantial amount of money (capital) to stat or operate
commune
self sufficient community based on principles of communal property and shared responsibilities
currency exchange rate
the rate at which one currancy can be exchanged for another or for gold
end product imports/ exports
imports. exports of finished manufactured goods/products ready for use by consumer or by producer of goods/ services
export and import permits act
a canadian law that is used to impose trade sanctions on goods by means of area control list, export control list and the import control list
guild
associations of merchants and craftspeople started in the middle ages and organized within a town for mutual aid or business benefit
interdependence
reliance of two or more groups on the actions of one another to fulfill certain wants or needs
investment canada act(ICA)
a canadian federal act to provide for the review of significant investments in canada by non canadians
labour intensive
an industry that requires a large number of skilled or unskilled workers
primary industries
industries that are based on raw materials from nature (fishing agriculture etc)
primary resources
raw materials stemming from a countrys primary resources
protectionism
the practice of protecting domestic industries and economies
domestic industry
industry that manufactures goods within their own country
resource based imports/ exports
imports and exports of primary resources
self sufficiency
the ability to provide for all of ones basic needs without relying on anyone else
semi manufactures items
partially manufactured to the specifications of manufacturers to be finished and used in the final manufacture or assembly of products
special economic measures act
a law that authorizes the canadian government to apply economic sanctions in response to a serious threat to internatioal peace and security
economic sanctions
barriers or penalties one country places on another
tariff
customs duty on merchandise imports the purpose of which is to give a price advantage to similar locally produced goods or to raise revenues for the country
united nations act
canadian act that incorporates into canadian law decisions passed by the un security council
world trade organization (WTO)
the principal internatioal organization that deals with the rules of trade between and among nations
intentional community
communities that attempt to somwhat be self sufficient
china exported / imported
silk and tea
imp spices fro india and clothing from northern europe
spices
once the most imp trade commodity to preserve food enhance flavour eliminate ordours -- grows in china and indea
the spanish empire
extended from alaska to chile
claimed by colonists liek chrisotpher columbus
the colonies provided spain with fish agricultural producs (sugar)
spain introduced the slave trade into the americans to run sugar plantations and silver mines
canadian trade
john cabot --> came to canada newfound land in search for spices found fish instead
fur trade between aboriginals and europe(became very successful)
HBC hudson bay company
initially established 3 departments
fur trade
land sale
retail
effects of trade
self sufficiency replaced by trade
beginning of interdependence
attracted immigration
trade from eurpe to canada
stylish clothes
household furniture
manufactured food
precision tools
from canada to europe
fish
fur
metals
wheat
wood
NAFTA
northa american free trade agreement
1993 canada signed it
eliminates tariffs among the US canada and mexico
FTAA
free trade area of the americans
canadas largest trading partners
US JAPAN UK
changes in canadas economic identity
ccanada trades primary resources to countries tha onver them to semi manufacuted goods and resel the to their won populatiosn
they are not labour intensive
trade in services is increaseing
canadas major industries :primary industries
wheat farming agriculture fishing forestry logging and energy and mining
canadas major industries : manufacturing
processed foods beverages rubber plastic leather textile wood furniture and fixtures paper printing and publishing and primary metals
canadas major industries services
activities performed by experts pilots mechanics accountants engineers doctors teachers arhitects -- fastest growing sector
commercial services travel and transportation and gov
advantages of international trade
sell something we dont need
creates jobs
attracts investments
attracts new technology and materials
offeres canadians a wider choice in producs and services
more competition in market place -- encourages competitive pricing technological advances and improved servies including education
cycle
employees spend money-> create demand -> creates new or expanded businesses-> business create jobs
disadvantages of international trade
economic exploitation
loss of cultural identity
physical harm
support of non democratic systems
special welfare issues--> maintaining sertain standards (health safety wage compensations etc) supporting businesses that dont have these prepetuates this issue
environmental issues
political issues (wars can ocur bc of natural resources)
barriers to international trade
tariffs
currency fluctuations
investment regulations
environmental restrictions
foreign relations and trade sanctions
safety regulations
immigration policies
tariffs
tax imposed by local gov on imported goods
protects local businesses from low priced competitive products
allows ppl to buy canadian products
currency fluctuations
fluctuationc value of currency on international markets can be major barrier to trade
as countrys currency is devalued in realation to another the country with devalued can sell mor to other country
investment regulations
ICA canadas federal investment canada act
non canadian investors must comply with provisions of ICA
environmental restrictions
large protion of canadas econ depends on its natural resources
foreigh insets and diseases could harm canadian econ
restictions are help to protet canadian crops and fish and forests
all products imported must comply with canadian standards
foreign relations and trade sanctions
placing limits onf officail and diplomatic contgacts and travel freezing assets in canada that belong to other natiosn restricting trade
Special Economic Measure Act SEMA and the export and import permits act and united nations act
safety regulations
affects domestic and foreign imports act as barriers to foreign exports who may need to make costly changes to conform canadian standards
immigtration poloicies
econ benefits from immigrans skills and financial investments
Business climate
the state of the business environment the economy and the stock market
export
a good or service that is produces in one country and sold in another country
foreign direct investment FDI
establishment of a subsidiary operation or a joint venture in a foreigh country used when a compan in one country wishes to expand into another country
goods
raw materials semi manufactured goods or manufactured goods
import
a good or service brought into a country
international business
create ship and sell goods and services internationally
inc trade licensing the use of assets and foreign investment
organisation for economic cooperation and development (OECD)
a monitoring agnecy that offeres governements a setting in which to discuss and evelop econ and socail policy
outsourcing
to obtain goods parts materials or services from an outside source
portfolio investment
purchase of shares and bonds for the income they yeild of the capital gains they may bring and not for exercising of ownership or control
private sector investment
the part of the econthat is free of governmetn control
commitment of money or capital to projects
products
a good or service
public sector investment
the part of the econ that is under direct control of the gov
the pubilc sectors commitment of money or capital to rprojets in order to gain financial return
raw materials
materials in their natural state
services
activities that individuals groups organizations or companies perform to advise or assist other individuals organizations or companies
why do companies expand internationally?
expand markets and increase sales
controlling expenses(lower labour costs oursourcins etc)
diversification(dont depend on the econ of one country)
competitiveness (protect themselves from competitors )
Reasons for recent growth in international business
developments in tech
developments in transportation
free borders
business confidence
global competition
advantages of doing business in canada
lower production and business costs
human resources
positive business climate
leverage
borrowing money to finance and investment decision