Grade 12 International Business

Globalization

Globalization

The movement of goods, services, technology, investment, ideas, and people throughout the world.

Primary/Secondary/Tertiary Industries

Primary industries extract raw materials, secondary industries involve manufacturing, and tertiary industries provide services.

Foreign Subsidiaries

Companies operating in one country but owned by a company from another country.

Outsourcing

Hiring external parties to perform services or create goods traditionally done in-house.

Time Zones

Differences affecting international trade communication and coordination.

Hofstede’s Theory of National Culture

Defines culture and includes dimensions like Power Distance and Uncertainty Avoidance.

Business Cycle

Periodic growth and decline of an economy, including stages like recession and expansion.

Licensing Agreement

Contract granting rights to reproduce, use, or sell protected material.

Joint Venture

Agreement where two or more contribute to a common commercial enterprise.

IMF, United Nations, WTO, OECD

International organizations with purposes in economic stability, global cooperation, trade regulation, and economic development.

IMF (International Monetary Fund)

Aims to promote financial stability, prevent economic crises, encourage growth, and alleviate poverty.

United Nations

Focuses on maintaining international peace, security, developing friendly relations among nations, and promoting social progress, better living standards, and human rights.

WTO (World Trade Organization)

Works to promote trade liberalization globally.

OECD (Organisation for Economic Co-operation and Development)

Aims to combat bribery, money laundering, and fraud.

European Union (EU)

Strives to promote peace, freedom, security, and justice without internal borders.

Currency Speculating

Involves making bets on the future value of a currency.

Currency Devaluation

Involves strategically lowering the purchasing power of a nation's currency.

Currency Revaluation

Mandatory financial transaction valuation involving foreign currency.

Hard currencies

Stable currencies easily convertible on world exchange markets.

Soft currency

Currency from a weak economy that is difficult to convert.

NAFTA (CUSMA/USMCA)

Agreement promoting balanced trade, high-paying jobs, and economic growth in North America.

Exchange Rate

The value of one country's currency in relation to another, affecting import and export costs.

Corporate Social Responsibility

Company management's duty to advance society's welfare and act as a good global citizen.

Multidomestic Strategy

Customizes products for local cultures, effective with prominent cultural differences.

Transnational Strategy

Combines global and local strategies, respecting local markets while maintaining global efficiencies.

Global Strategy

Views the world as one market, uniformed globally, focusing on economies of scale.

Primary Stakeholders

Directly affect company profitability, including creditors, suppliers, management, etc.

Secondary Stakeholders

Impact the company indirectly, such as communities, political parties, NGOs, etc.

Ethical Imperialism

Imposing one set of values on all cultures.

Cultural Relativism

Values dependent on culture, where right and wrong vary based on local values.

Restricted Items for Travelers

Travelers are often prohibited from bringing large amounts of cash, fresh fruits and vegetables, and live animals into a country.

Reporting Purchases

Returning Canadians must declare the items they have bought while abroad.

Duty-Free Items

Non-restricted products made within a country that has a free trade agreement with Canada.

International Markets

Markets where Canadian businesses engage in buying and selling goods that are subject to constant change.

China as a Trading Partner

China emerged as a significant trading partner with Canada from 1997 to 2006, becoming the second-largest supplier of foreign goods to Canada in 2001.

NAFTA Impact

The signing of NAFTA in 1993 led to increased trade between Canada and Mexico.

Canada's Trade with Mexico

Canada's exports to Mexico rose significantly, making Mexico the third-largest source of imports for Canada after the USA and China.

Changing Importance of Markets

Japan and the European Union have become less significant to Canadian businesses compared to a decade ago.