BBB4M Flashcards

You’re right to ask for more! Since this is a Unit 1–3 test in International Business (BBB4M), here’s a comprehensive study guide covering everything that might appear, including definitions, key concepts, and explanations of major ideas from the course.

Your test format includes:

✅ Multiple Choice (MC)

✅ True/False (T/F)

✅ Short Answer

✅ Long Answer

✅ Case Study (Application)

📌 Key Terms & Definitions

Unit 1: Business, Trade, and Globalization

Business

An organization that produces or sells goods and services to satisfy consumer needs while making a profit.

Transactions

A financial exchange of goods or services between businesses or individuals.

Domestic Business

A company that operates only within its home country.

International Business

Any commercial activity that occurs across national borders, including imports, exports, foreign investment, and licensing.

Domestic Market

The supply and demand for goods/services within a country’s borders.

Foreign Market

The marketplace outside a business’s home country where goods and services are sold.

Trade

The buying, selling, and exchange of goods and services between countries.

Foreign or International Trade

Trade that involves transactions between businesses or governments in different countries.

Trading Partner

A country that conducts regular trade with another country.

Duty or Tariff

A tax imposed on imported goods to protect domestic industries and regulate trade.

Globalization

The increasing integration of economies, businesses, and cultures worldwide through trade, investment, and technology.

Interdependence

A situation where countries depend on each other for resources, goods, services, or technology.

Unit 2: Industries and Investment

Primary Industries

Sectors that extract natural resources (e.g., agriculture, fishing, forestry, mining).

Secondary Industries

Sectors that manufacture goods using raw materials (e.g., construction, automobile manufacturing).

Tertiary Industries (Service Sector)

Sectors that provide services rather than goods (e.g., retail, finance, healthcare).

Branch Plant

A factory or business operation set up in another country to access markets and lower costs.

Importing

Bringing goods or services into a country from another country for sale.

Global Sourcing

Obtaining goods or services from international suppliers to reduce costs and increase efficiency.

Exporting

Selling goods or services to customers in another country.

Value-Added

The increase in a product’s worth after processing or manufacturing.

Licensing Agreement

A legal contract that allows one company to use another company’s brand, patent, or process for a fee.

Exclusive Distribution Rights

A business arrangement where a company is given the sole right to distribute a product in a specific market.

Franchise

A business model where an individual (franchisee) pays for the rights to operate a branch of a larger company (franchisor).

Joint Venture

A business partnership between two or more companies to share resources, risks, and profits in a foreign market.

Foreign Subsidiary

A business that operates in a foreign country but is controlled by a parent company in another country.

Unit 3: Trade Regulations, Currency, and Barriers

Trade Embargo

A government-imposed ban on trade with a specific country, usually for political reasons.

Trade Sanctions

Restrictions on trade with a country to influence its policies or actions.

Exchange Rate

The value of one country’s currency in relation to another’s.

Floating Rate

An exchange rate that is determined by supply and demand in the foreign exchange market.

Currency Revaluation

An increase in the value of a country’s currency compared to others.

Currency Devaluation

A decrease in the value of a country’s currency to make exports cheaper and imports more expensive.

Terms of Trade

A measure comparing a country’s export prices to its import prices.

Hard Currencies

Stable and widely accepted currencies (e.g., USD, Euro, Yen) used in international trade.

Soft Currencies

Unstable currencies that are less accepted internationally due to inflation or economic instability.

📌 Key Concepts & Explanations

1⃣ History of Canadian Trade

• Canada’s economy has historically depended on trade, starting with fur trading in the 1600s.

• Major trade agreements include:

• NAFTA (1994) → Replaced by USMCA (2020)

• CETA (2017) → Canada-EU Free Trade Agreement

• CPTPP → A trade deal with Pacific nations

2⃣ Globalization & Its Effects on Canadians

✅ Pros:

• Access to cheaper goods

• More job opportunities in global markets

• Increased foreign investment in Canada

❌ Cons:

• Job losses in certain industries (outsourcing)

• Dependence on foreign economies

• Environmental concerns from increased production

3⃣ Emerging Markets for Canadian Investment

• Countries like India, China, Brazil, and Vietnam are growing economies where Canadian businesses are expanding.

• These markets offer cheap labor, new customers, and trade opportunities.

4⃣ Canada’s Major Trading Partners

📥 Top Imports:

• Machinery, electronics (China, USA)

• Vehicles (Mexico, Japan)

• Oil & energy (Saudi Arabia)

📤 Top Exports:

• Oil, natural gas (USA, China)

• Lumber & minerals (EU, Japan)

• Wheat & agricultural products (India, Africa)

5⃣ Forms of International Investment

1⃣ Joint Venture → Two companies share risks & rewards in a foreign market.

2⃣ Foreign Subsidiary → A Canadian company owns and operates a business in another country.

3⃣ Franchising → Canadian companies sell rights to use their brand (e.g., Tim Hortons in the UAE).

6⃣ Tariffs & Their Effects

• Tariffs protect local businesses by making foreign goods more expensive.

• However, high tariffs lead to trade wars (e.g., U.S. vs. China in 2018).

7⃣ Currency Valuation & Its Effects

📉 Weak Canadian Dollar (↓ CAD)

✅ Boosts exports (Canadian goods are cheaper for other countries).

❌ Makes imports more expensive for Canadians (higher prices for foreign goods).

📈 Strong Canadian Dollar (↑ CAD)

✅ Cheaper imports (better for consumers).

❌ Hurts exports (Canadian products become expensive abroad).

📌 News Topics (Be Prepared to Discuss in a Case Study!)

• Impact of USMCA on Canadian businesses

• China’s role in global trade & Canada’s relationship with China

• How war, inflation, or economic crises affect exchange rates & international business

• Sustainability in international trade (green energy, reducing carbon footprint)

This should cover everything for your test! You can turn these terms and concepts into flashcards with Knowt AI, and use the explanations for short & long answer prep. Let me know if you need extra help!