Introduction to International Business
This introduction focuses on the Evolution of Global trade by examining the History of Canadian Trade. International trade has evolved from small groups of people bartering goods and services to all the countries of the world becoming economically interdependent. Canada exports and imports goods/services on a daily basis. Is our economy improving through global trade? What is our role in this new international economy?
Evolution of Global Trade
History of Canadian Trade
Canada's Economic Identity
Advantages/Disadvantages and Barriers to International Trade
Politics and International Business
Economics and International Business
Key Terms
Review Questions
Evolution of Global Trade
Self Sufficiency is the ability to provide for all of your basic needs. The basic needs of survival are: Food (water), Shelter and Clothing. A country is self sufficient when it provides everything its population needs to survive without having to trade with other countries. Wants, however, are unlimited. Because we face so many choices, the sum total of wants is virtually unlimited. Our resources are not unlimited -that is the problem - the economic problem. Arising from unlimited wants and scarce resources, Economics is the study of how we make decisions regarding the use of our scarce resources to satisfy our human needs and wants.
Canada's Aboriginal peoples were largely self-sufficient in that they hunted or gathered their own food, made their own clothes, and developed the skills necessary for making weapons, shelters and tools
They had a sophisticated trade network in place (trading between geographic areas).
Self sufficiency has been typical of every developing nation in the world - some still exist today. For example the Amish and Old Order Mennonite groups attempt self-sufficiency in their communitites to limit their contact with outsiders for religious reasons.
History of Canadian Trade
The discovery of nonlocal objects at many archaeological sites strongly suggests that trade existed in prehistoric times. Anthropologists and other explorers have found trade institutions among diverse peoples throughout the world. The ceremonially elaborate kula trade ring of the Trobriand Islands, the gift-giving potlatch of W Canada's Kwakiutl, and the desert caravan of N Africa and the Arabian peninsula are among the more famous examples. In the Western world a number of peoples, including the Egyptians, Sumerians, Cretans, Phoenicians, and Greeks, at one time or another dominated trade. The Crusades did much to widen European trade horizons and prefaced the passing of trade superiority from Constantinople to Venice and other cities of Northern Italy.
In terms of the history of Canadian Trade, the European Connection began in 1497 (with the help of an Italian, of course, named Giovanni Cabotto. Cabotto was looking for spices and believed that he had found a new route to the Orient. Unfortunately, he didn't find spices - he found fish. This began an influx of trading - Europeans and Aboriginals for various goods, including furs.
Samuel de Champlain (France) and eventually the "Hudson's Bay Company" ( a group of investors from England) all competed to dominate trade in Canada. The principle of self-sufficiency was replaced by the principles of trade: create a surplus, trade the surplus for goods that you cannot make yourself, sell some of those goods to others for their surplus, trade that surplus for goods, and so on. It was the beginning of "Interdependence", the reliance of tow or more groups on the actions of one another to fulfill certain wants or needs.
Early Trade between Canada and Europe
History of Canadian Trade
The discovery of nonlocal objects at many archaeological sites strongly suggests that trade existed in prehistoric times. Anthropologists and other explorers have found trade institutions among diverse peoples throughout the world. The ceremonially elaborate kula trade ring of the Trobriand Islands, the gift-giving potlatch of W Canada's Kwakiutl, and the desert caravan of N Africa and the Arabian peninsula are among the more famous examples. In the Western world a number of peoples, including the Egyptians, Sumerians, Cretans, Phoenicians, and Greeks, at one time or another dominated trade. The Crusades did much to widen European trade horizons and prefaced the passing of trade superiority from Constantinople to Venice and other cities of Northern Italy.
In terms of the history of Canadian Trade, the European Connection began in 1497 (with the help of an Italian, of course, named Giovanni Cabotto. Cabotto was looking for spices and believed that he had found a new route to the Orient. Unfortunately, he didn't find spices - he found fish. This began an influx of trading - Europeans and Aboriginals for various goods, including furs.
Samuel de Champlain (France) and eventually the "Hudson's Bay Company" ( a group of investors from England) all competed to dominate trade in Canada. The principle of self-sufficiency was replaced by the principles of trade: create a surplus, trade the surplus for goods that you cannot make yourself, sell some of those goods to others for their surplus, trade that surplus for goods, and so on. It was the beginning of "Interdependence", the reliance of tow or more groups on the actions of one another to fulfill certain wants or needs.
Early Trade between Canada and Europe
From Europe to Canada: stylish clothing, household furniture, manufactured food, precision tools
From Canada to Europe: fish, fur, metals, wood, wheat
The American Connection
Exploration of the USA was occurring at the same time as the exploration and settlement in Canada. However, there were major differences. In Canada, the English and the French were the major competitors. In the USA, the Dutch and the English were competing. Dutch traders worked for the West India Company, a business formed by wealthy Dutch investors in Amserdam to take advantage of the trade opportunitities in the Caribbean and to break the Spanish trade monopoly in that area. The Dutch saw the possibilities of the fur trade as well, and set up a fur trading post in what is now New York City.
The most important difference between early trade in Canda vs. the USA, was the influence of trade with the West Indies on the American economy. The end of Dutch rule in North American came in 1674 when the British and Dutch signed a peace treaty. However, the West Indian connections that had been made by the Dutch West India Company still existed. By 1720, American trade looked very different from Canadian trade in that Canadian traders focused on the European connections, especially France and England, while the USA developed a much more diversified network of trading partners stretching well into South America
The importance of sugar in the history of American trade cannot be overestimated. Sugar was so important it was called “white gold”. American farmers provided food for the Caribbean markets. Ships loaded with corn, wheat, barley, oats and livestock left the port of New York between November and January. The ships returned full of sugar between April and June
Sugar was refined into white table sugar (used for candy and table sugar) and molasses (which was distilled into rum). These finished products were traded in Europe or taken back to the West Indies. Trade was very profitable for many American businesses involved - from insurance companies to farmers and from shipbuilders to traders and merchants. The Amercan trade became much more varied than Canadian trade. The USA, did much more than export raw materials, they also processed goods like cotton, yarn, fabric, and manufactured cotton clothing. Canada’s trade, on the other hand, was still dominated by raw materials which were exported to England to make manufactured goods.
After the American Revolution and the War of 1812, many Canadian businesses were beginning to look south towards the USA for a trading partner, instead of east to Britain. During these years Canada was still dependent on the fur trade. In 1779, a consortium called the North West Company began to provide competition for the Hudson’s Bay Company which had become a monopoly since the defeat of the French in Quebec in 1759. The North West Company also competed with the American Fur Company. This competition caused the American government to pass a law in 1816 making it illegal for Candians to trade furs in the United States. This was the first protectionist efforts of the USA, and it effectively forced the two major Canadian fur trading companies to join forces. In 1821 the Hudson’s Bay Company and the North West Company merged under the name - “Hudson’s Bay Company”. This became the most powerful company on the continent.
By the 1840's, silk had replaced beaver as the material of choice for hats in Europe. This trend affected the European demand for beaver pelts. The fur trade in Canada was never to regain its significance.
As the importance of trade between Canada and the USA increased, some Canadians began to fear a politrial alliance with the USA. The major economic and industrial centres of both countries were located on the Eastern seaboard and in the central regions (the Rocky Mountains prevented easy access to the West Coast). It seemed logical, to some, that from an economic standpoint the USA and Canada should unite.
A group of Canadian and British business people began to argue for a railway across Canada from east to west. This would help the newly independent country develop more export markets. The CPR (Canadian Pacific Railway) track was completed to the west coast in 1885 and it provided the means to ship goods and people from coast to coast and also brought British Columbia into Confederation. The USA and Canada became important trading partners and even today, Canada and the USA continue to negotiate trade policies and issues.
The Pacific Rim Connection
Trade with Asia did not really resume its importance for Canada until the last half of the twentieth century. Japan led the way after WW2. Japan’s industries were all destroyed - with North American aid, factories were rebuilt to high standards, providing modern manufacturing facilities. Japanese culture stressed education and a strong work ethic and Japan aggressively pursued international trade opportunities.
Japan entered North American markets in the early 50's with inexpensive toys, novelties, and electonics. For years, the phrase “made in Japan” was synonymous with “cheap. Many Japanses companies, notably Nikon and Canon, tried to counter this image but it was the Totsuko Company (Sony) that became the most famous Japanese company in the world, and all because of its pocket radio.
Japan’s reputation for cameras, electronics and automobiles grew throughout the latter part of the twentieth century. Honda, Nintendo, Sanyo, Fuji, Panasonic - all from Japan - and in only a few short decades have manged to become some of the most popular brands in the world.
Mexico and the Americas
In 1993, Canada signed the North American Free Trade Agreement (NAFTA) and began the work of eliminating all traiff barriers among the Untied States, Canada, and Mexico by the year 2008. NAFTA was initiated by the U.S. The large Mexican consumer market provides new opportunities for the sale of Canadian products, and Canadian branch plants can now take advantage of lower Mexican labour costs to manufacture goods for shipment to the U.S. Prior to this agreement, Canada did very little trade in Central and South America.
An effort to unite the economies of the America’s into a single free trade arrangement was initiated at the Summit of the Americans, held in 1994. The heads of state of the 34 democracies in the region agreed to construct a Free Trade Area of the Americas (FTAA) and to complete negotiations by 2005. Negotiations, have yet to resolve. Canada has taken a leadership role in these negotioatons, partly because of a successful bilateral trade agreement negotiated with Chile and partly because political differences betweeen the American Democrats and Republicans make it difficult for the USA to assume this role.
It is difficult to predict the future of Canada’s trade with Central and South America. Our largest trade partners are still, in order, the United States, Japan, and the United Kingdom. But trade shifts in unpredictable ways. At the very least, the proposed FTAA will offer Canadian businesses interesting opportunities.
Canada's Economic Identity
Click here for the Economic Identity slideshow.
Advantages/Disadvantages and Barriers to International Trade
Click here for the Advantages/Disadvantages
Click here for Barriers to Trade
Politics, and International Business
All governments assume a role in international trade. The government of Canada promotes Canadian businesses abroad and tries to lessen the "risk" of doing bysiness in foreign countries in numerous ways. The Canadian government:
Types of Political Risks:
By contrast, some nations do not grant democratic freedoms to their people. Totalitarian systems (e.g. North Korea, Cuba) tend to centralize power and often use the military to control the state.
In practice a purely democratic or totalitarian political system is theoretical and most countries have a mixed system of government that leans towards one end or the other of the political spectrum.
Economics and International Business
Economics is the study of how we make decisions regarding the use of our scarce resources to satisfy our human needs and wants.
An economic system allows a country to decide what to produce, how to produce, and for who to produce. Such systems include the four factors of production:
Click here for the "economic systems" presentation.
Business Cycles
Click here for the "business cycles" presentation
Key Terms/Concepts
Self-Sufficiency
Early Trade
The First Trade Regulations
Trade and Exploration
The European Connection
The American connection
The Pacific Rim connection
Mexico and the Americas
Changes in Canada's Economic Identity
Canada's Major Industries
Advantages of International Trade
Disadvantages of International Trade
Tariffs
Currency Fluctuations
Investment Regulations
Environmental Restrictions
Foreign Relations and Trade Sanctions
Safety Regulations
Immigration Policies
Dealing with the Trade Barriers
Democracy
Totalitarian systems
Political Risk
Economics
Economic Systems
Mixed Economy
Free Enterprise
Centrally Planned Economy
The Business Cycle
Questions
1. Define/Identify the following terms: a. needs, b. needs, c. wants, d. economics, e. the economic problem, f. Giovanni Caboto, g. interdependence, h. protectionism, i. Hudson's Bay Company, j. CPR
2. What does the term self-sufficiency mean when used to describe a country or a community?
3. Describe briefly at least five changes that would take place in your life if Canada were to become self-sufficient.
4. How did guilds control trade in their regions?
5. Explain the connection between Euopean exploration of North and South American and International Trade
6. What was the impact of the fur trade on Canada?
7. Is the fur trade still important in Canadian business? Explain.
8. What were the differences between American and Canadian trade during the 1700's?
9. List some of the reasons why Canada traded with Europe during the Eighteenth century.
10. What is Nafta?
11. What is FTAA?
12. Historically, what types of resources has Canada traditionally traded?
13. Distinguish between Primary, Secondary, and Service Industries.
14. List 5 advantages of international trade.
15. List 5 disadvantages of international trade.
16. Explain how Canada's international trade has been affected by environmental issues.
17. List 6 Barriers to International Trade.
18. Visit the following website: http://laws.justice.gc.ca/en/F-12/C.R.C.-c.802 . This website is the Fish Inspection Act. This is a heavily regulated Act in Canada, which producers must strictly adhere to. Visit the site and report on the "grades" for Pacific Salmon. In other words, if a producer wishes to sell Pacific Salmon in a store, what three ways can the fish be graded? Distinguish between them.
This introduction focuses on the Evolution of Global trade by examining the History of Canadian Trade. International trade has evolved from small groups of people bartering goods and services to all the countries of the world becoming economically interdependent. Canada exports and imports goods/services on a daily basis. Is our economy improving through global trade? What is our role in this new international economy?
Evolution of Global Trade
History of Canadian Trade
Canada's Economic Identity
Advantages/Disadvantages and Barriers to International Trade
Politics and International Business
Economics and International Business
Key Terms
Review Questions
Evolution of Global Trade
Self Sufficiency is the ability to provide for all of your basic needs. The basic needs of survival are: Food (water), Shelter and Clothing. A country is self sufficient when it provides everything its population needs to survive without having to trade with other countries. Wants, however, are unlimited. Because we face so many choices, the sum total of wants is virtually unlimited. Our resources are not unlimited -that is the problem - the economic problem. Arising from unlimited wants and scarce resources, Economics is the study of how we make decisions regarding the use of our scarce resources to satisfy our human needs and wants.
Canada's Aboriginal peoples were largely self-sufficient in that they hunted or gathered their own food, made their own clothes, and developed the skills necessary for making weapons, shelters and tools
They had a sophisticated trade network in place (trading between geographic areas).
Self sufficiency has been typical of every developing nation in the world - some still exist today. For example the Amish and Old Order Mennonite groups attempt self-sufficiency in their communitites to limit their contact with outsiders for religious reasons.
History of Canadian Trade
The discovery of nonlocal objects at many archaeological sites strongly suggests that trade existed in prehistoric times. Anthropologists and other explorers have found trade institutions among diverse peoples throughout the world. The ceremonially elaborate kula trade ring of the Trobriand Islands, the gift-giving potlatch of W Canada's Kwakiutl, and the desert caravan of N Africa and the Arabian peninsula are among the more famous examples. In the Western world a number of peoples, including the Egyptians, Sumerians, Cretans, Phoenicians, and Greeks, at one time or another dominated trade. The Crusades did much to widen European trade horizons and prefaced the passing of trade superiority from Constantinople to Venice and other cities of Northern Italy.
In terms of the history of Canadian Trade, the European Connection began in 1497 (with the help of an Italian, of course, named Giovanni Cabotto. Cabotto was looking for spices and believed that he had found a new route to the Orient. Unfortunately, he didn't find spices - he found fish. This began an influx of trading - Europeans and Aboriginals for various goods, including furs.
Samuel de Champlain (France) and eventually the "Hudson's Bay Company" ( a group of investors from England) all competed to dominate trade in Canada. The principle of self-sufficiency was replaced by the principles of trade: create a surplus, trade the surplus for goods that you cannot make yourself, sell some of those goods to others for their surplus, trade that surplus for goods, and so on. It was the beginning of "Interdependence", the reliance of tow or more groups on the actions of one another to fulfill certain wants or needs.
Early Trade between Canada and Europe
History of Canadian Trade
The discovery of nonlocal objects at many archaeological sites strongly suggests that trade existed in prehistoric times. Anthropologists and other explorers have found trade institutions among diverse peoples throughout the world. The ceremonially elaborate kula trade ring of the Trobriand Islands, the gift-giving potlatch of W Canada's Kwakiutl, and the desert caravan of N Africa and the Arabian peninsula are among the more famous examples. In the Western world a number of peoples, including the Egyptians, Sumerians, Cretans, Phoenicians, and Greeks, at one time or another dominated trade. The Crusades did much to widen European trade horizons and prefaced the passing of trade superiority from Constantinople to Venice and other cities of Northern Italy.
In terms of the history of Canadian Trade, the European Connection began in 1497 (with the help of an Italian, of course, named Giovanni Cabotto. Cabotto was looking for spices and believed that he had found a new route to the Orient. Unfortunately, he didn't find spices - he found fish. This began an influx of trading - Europeans and Aboriginals for various goods, including furs.
Samuel de Champlain (France) and eventually the "Hudson's Bay Company" ( a group of investors from England) all competed to dominate trade in Canada. The principle of self-sufficiency was replaced by the principles of trade: create a surplus, trade the surplus for goods that you cannot make yourself, sell some of those goods to others for their surplus, trade that surplus for goods, and so on. It was the beginning of "Interdependence", the reliance of tow or more groups on the actions of one another to fulfill certain wants or needs.
Early Trade between Canada and Europe
From Europe to Canada: stylish clothing, household furniture, manufactured food, precision tools
From Canada to Europe: fish, fur, metals, wood, wheat
The American Connection
Exploration of the USA was occurring at the same time as the exploration and settlement in Canada. However, there were major differences. In Canada, the English and the French were the major competitors. In the USA, the Dutch and the English were competing. Dutch traders worked for the West India Company, a business formed by wealthy Dutch investors in Amserdam to take advantage of the trade opportunitities in the Caribbean and to break the Spanish trade monopoly in that area. The Dutch saw the possibilities of the fur trade as well, and set up a fur trading post in what is now New York City.
The most important difference between early trade in Canda vs. the USA, was the influence of trade with the West Indies on the American economy. The end of Dutch rule in North American came in 1674 when the British and Dutch signed a peace treaty. However, the West Indian connections that had been made by the Dutch West India Company still existed. By 1720, American trade looked very different from Canadian trade in that Canadian traders focused on the European connections, especially France and England, while the USA developed a much more diversified network of trading partners stretching well into South America
The importance of sugar in the history of American trade cannot be overestimated. Sugar was so important it was called “white gold”. American farmers provided food for the Caribbean markets. Ships loaded with corn, wheat, barley, oats and livestock left the port of New York between November and January. The ships returned full of sugar between April and June
Sugar was refined into white table sugar (used for candy and table sugar) and molasses (which was distilled into rum). These finished products were traded in Europe or taken back to the West Indies. Trade was very profitable for many American businesses involved - from insurance companies to farmers and from shipbuilders to traders and merchants. The Amercan trade became much more varied than Canadian trade. The USA, did much more than export raw materials, they also processed goods like cotton, yarn, fabric, and manufactured cotton clothing. Canada’s trade, on the other hand, was still dominated by raw materials which were exported to England to make manufactured goods.
After the American Revolution and the War of 1812, many Canadian businesses were beginning to look south towards the USA for a trading partner, instead of east to Britain. During these years Canada was still dependent on the fur trade. In 1779, a consortium called the North West Company began to provide competition for the Hudson’s Bay Company which had become a monopoly since the defeat of the French in Quebec in 1759. The North West Company also competed with the American Fur Company. This competition caused the American government to pass a law in 1816 making it illegal for Candians to trade furs in the United States. This was the first protectionist efforts of the USA, and it effectively forced the two major Canadian fur trading companies to join forces. In 1821 the Hudson’s Bay Company and the North West Company merged under the name - “Hudson’s Bay Company”. This became the most powerful company on the continent.
By the 1840's, silk had replaced beaver as the material of choice for hats in Europe. This trend affected the European demand for beaver pelts. The fur trade in Canada was never to regain its significance.
As the importance of trade between Canada and the USA increased, some Canadians began to fear a politrial alliance with the USA. The major economic and industrial centres of both countries were located on the Eastern seaboard and in the central regions (the Rocky Mountains prevented easy access to the West Coast). It seemed logical, to some, that from an economic standpoint the USA and Canada should unite.
A group of Canadian and British business people began to argue for a railway across Canada from east to west. This would help the newly independent country develop more export markets. The CPR (Canadian Pacific Railway) track was completed to the west coast in 1885 and it provided the means to ship goods and people from coast to coast and also brought British Columbia into Confederation. The USA and Canada became important trading partners and even today, Canada and the USA continue to negotiate trade policies and issues.
The Pacific Rim Connection
Trade with Asia did not really resume its importance for Canada until the last half of the twentieth century. Japan led the way after WW2. Japan’s industries were all destroyed - with North American aid, factories were rebuilt to high standards, providing modern manufacturing facilities. Japanese culture stressed education and a strong work ethic and Japan aggressively pursued international trade opportunities.
Japan entered North American markets in the early 50's with inexpensive toys, novelties, and electonics. For years, the phrase “made in Japan” was synonymous with “cheap. Many Japanses companies, notably Nikon and Canon, tried to counter this image but it was the Totsuko Company (Sony) that became the most famous Japanese company in the world, and all because of its pocket radio.
Japan’s reputation for cameras, electronics and automobiles grew throughout the latter part of the twentieth century. Honda, Nintendo, Sanyo, Fuji, Panasonic - all from Japan - and in only a few short decades have manged to become some of the most popular brands in the world.
Mexico and the Americas
In 1993, Canada signed the North American Free Trade Agreement (NAFTA) and began the work of eliminating all traiff barriers among the Untied States, Canada, and Mexico by the year 2008. NAFTA was initiated by the U.S. The large Mexican consumer market provides new opportunities for the sale of Canadian products, and Canadian branch plants can now take advantage of lower Mexican labour costs to manufacture goods for shipment to the U.S. Prior to this agreement, Canada did very little trade in Central and South America.
An effort to unite the economies of the America’s into a single free trade arrangement was initiated at the Summit of the Americans, held in 1994. The heads of state of the 34 democracies in the region agreed to construct a Free Trade Area of the Americas (FTAA) and to complete negotiations by 2005. Negotiations, have yet to resolve. Canada has taken a leadership role in these negotioatons, partly because of a successful bilateral trade agreement negotiated with Chile and partly because political differences betweeen the American Democrats and Republicans make it difficult for the USA to assume this role.
It is difficult to predict the future of Canada’s trade with Central and South America. Our largest trade partners are still, in order, the United States, Japan, and the United Kingdom. But trade shifts in unpredictable ways. At the very least, the proposed FTAA will offer Canadian businesses interesting opportunities.
Canada's Economic Identity
Click here for the Economic Identity slideshow.
Advantages/Disadvantages and Barriers to International Trade
Click here for the Advantages/Disadvantages
Click here for Barriers to Trade
Politics, and International Business
All governments assume a role in international trade. The government of Canada promotes Canadian businesses abroad and tries to lessen the "risk" of doing bysiness in foreign countries in numerous ways. The Canadian government:
- establishes import/export policies to protect Canada and Canadians
- develops trade policies and regulations to govern and encourage trade
- assists Canadian exporters in their quest to succeed internationally
- matches potential Canadian exporters with international clients
- maintains and improves relationships with other nations for the purpose of trade
- assists Canadian companies in adjusting to canging international market conditions
- fosters innovation and human resource development to enable companies to compete internationally
Types of Political Risks:
- Risk of General Political Instaiblity
- Ownership Risk
- Operations Risk
- Transfer Risk
- It is necessary to research information about doing business in other countries to find answers to the following questions about the political situation in the host country:
- What are the changes of political and economic instability in the host country over the next 3 - 5 years?
- What agreements are in place between Canada and the host government regarding Canadian investments?
- How committed is the current governmnet to the rules of ownership rights, for example, property and business?
- When is the next election or how long will the current government stay in place?
- If a new government were to emerge, how would its platform and ideology change the current state of business affairs?
- Would a new government be likely to propose changes in politics that would affect the country's way of doing international business?
- How would changes in government affect the profitability and safety of an international project?
By contrast, some nations do not grant democratic freedoms to their people. Totalitarian systems (e.g. North Korea, Cuba) tend to centralize power and often use the military to control the state.
In practice a purely democratic or totalitarian political system is theoretical and most countries have a mixed system of government that leans towards one end or the other of the political spectrum.
Economics and International Business
Economics is the study of how we make decisions regarding the use of our scarce resources to satisfy our human needs and wants.
An economic system allows a country to decide what to produce, how to produce, and for who to produce. Such systems include the four factors of production:
- land
- labour
- capital
- management
Click here for the "economic systems" presentation.
Business Cycles
Click here for the "business cycles" presentation
Key Terms/Concepts
Self-Sufficiency
Early Trade
The First Trade Regulations
Trade and Exploration
The European Connection
The American connection
The Pacific Rim connection
Mexico and the Americas
Changes in Canada's Economic Identity
Canada's Major Industries
Advantages of International Trade
Disadvantages of International Trade
Tariffs
Currency Fluctuations
Investment Regulations
Environmental Restrictions
Foreign Relations and Trade Sanctions
Safety Regulations
Immigration Policies
Dealing with the Trade Barriers
Democracy
Totalitarian systems
Political Risk
Economics
Economic Systems
Mixed Economy
Free Enterprise
Centrally Planned Economy
The Business Cycle
Questions
1. Define/Identify the following terms: a. needs, b. needs, c. wants, d. economics, e. the economic problem, f. Giovanni Caboto, g. interdependence, h. protectionism, i. Hudson's Bay Company, j. CPR
2. What does the term self-sufficiency mean when used to describe a country or a community?
3. Describe briefly at least five changes that would take place in your life if Canada were to become self-sufficient.
4. How did guilds control trade in their regions?
5. Explain the connection between Euopean exploration of North and South American and International Trade
6. What was the impact of the fur trade on Canada?
7. Is the fur trade still important in Canadian business? Explain.
8. What were the differences between American and Canadian trade during the 1700's?
9. List some of the reasons why Canada traded with Europe during the Eighteenth century.
10. What is Nafta?
11. What is FTAA?
12. Historically, what types of resources has Canada traditionally traded?
13. Distinguish between Primary, Secondary, and Service Industries.
14. List 5 advantages of international trade.
15. List 5 disadvantages of international trade.
16. Explain how Canada's international trade has been affected by environmental issues.
17. List 6 Barriers to International Trade.
18. Visit the following website: http://laws.justice.gc.ca/en/F-12/C.R.C.-c.802 . This website is the Fish Inspection Act. This is a heavily regulated Act in Canada, which producers must strictly adhere to. Visit the site and report on the "grades" for Pacific Salmon. In other words, if a producer wishes to sell Pacific Salmon in a store, what three ways can the fish be graded? Distinguish between them.