module 1

Question 1

why are businesses going global

Answer 1

1. reduced trade barriers
2. technology
3. more competition

Question 2

globalization from a business POV

Answer 2

• drives innovation
• cheaper/better quality
• allows businesses to focus on what they do best
• larger market

Question 3

globalization from a consumer POV

Answer 3

• more products
• better quality
• lower prices

Question 4

globalization from an employee POV

Answer 4

• better experience

Question 5

challenges of globalization

Answer 5

• 24/7
• cultural difference
• potential job loss

Question 6

2 main reasons why countries trade

Answer 6

1. countries can’t produce everything that people want
2. importing and exporting

Question 7

balance of payments

Answer 7

difference between money coming in and leaving plus other factors

Question 8

sales to other markets (exports)

Answer 8

• directly through sales to foreign customers
• indirectly through foreign located subsidiaries of Canadian companies

Question 9

purchases from other markets (imports)

Answer 9

• directly through purchases from foreign suppliers
• indirectly through from Canadian subsidiaries

Question 10

strategies for reaching global markets (from least to most potential, control, and risk)

Answer 10

1. licensing
2. exporting
3. franchising
4. contract manufacturing
5. joint venture & strategic alliance
6. foreign direct investment

Question 11

forces affecting trading in global markets

Answer 11

1. sociocultural forces
2. economic and financial
3. legal forces
4. physical/environmental forces

Question 12

counter trading

Answer 12

when you trade without using currency

Question 13

embargo

Answer 13

complete ban on a product