Grade 10

1. International Business

2. What is International Business?
 Domestic transactions
 International transactions
 Global trade

3. IT Benefits for Business
 Access to markets
 Cheaper labour
 Increased Quality of Goods
 Increased Quantity
 Access to Resources

4. What is a global product?
 Products that are sold in the same
form all over the world
 Packaged food for example is not a
global product as not everyone as
the same tastes

5. The Five P’s of International Business
 Product
 Price
 People
 Promotion
 Place

6. Costs of International Trade
Social Costs
Offshore Outsourcing
-Human Rights or Labour Abuses
 International Labour
Organisation(ILO)
-Environmental Degradation

7. Barriers to International Trade
The Four ‘T’s
-Transaction costs
-Tariffs and non-tariff barriers
Custom duties (a form of tax on imports)
-Time
-Transport (cost of importing and
exporting)

8. Review Qs
 P 27

9. Flow of Goods and Services
 Balance of trade (trade deficit, trade
surplus)
 Imports
 Exports (Direct exporting, indirect
exporting)

10. Flow of Goods and Services
Imports, such as raw materials, processed material, semi-finished
goods, and manufactured products, flow into Canada. Goods and
materials also leave Canada as exports.
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11. Balance of Trade
To maintain a healthy balance of trade, countries try
to import the same total value of products that they
export. An imbalance of the two results in the
following:
• a trade deficit in which a country pays more for
imports than it earns from exports
• a trade surplus in which a country earns more
from exports than it pays for imports
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12. Imports
Five Ways to Offset the Risk of Importing
1. Measure consumer interest.
2. Use care when selecting foreign suppliers.
3. Learn about a foreign partner’s culture.
4. Carefully scrutinize the purchase agreement and then sign it.
5. Check goods for quantity and quality upon arrival.
Exports
Direct exporting is exporting a product directly to an importer without
using an intermediary. Indirect exporting is exporting a product to an
intermediary who then conveys the product to the importer. Larger
established companies usually use direct exporting while newer ones
utilize indirect exporting.
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13. Offsetting Risks
Exporters reduce risks by planning carefully. As part of their plan,
they conduct market research to ensure that there are consumers for
their goods and services.
Canada’s Major Trading Partners
Canada’s number one trade partner is the United States.
Three major reasons for trading with the United States include
1. low cost shipping due to proximity
2. similar cultures (language, interests, product interest, and so on
3. a market that is 10 timers larger than the domestic one
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14. Flow of Goods and Services

15. Review Qs
 p133

16. Website for Canadian imports and exports
 https://www.international.gc.ca/gac-amc/publications/economist-
economiste/highlights_trade-2018-faits_saillants_commerce.aspx?lang=eng

17. Canada and international trade
agreements
 Trade Agreements
 General Agreement on Tariffs and
Trade (GATT) 1948
 World Trade Organisation(WTO)1995
 Canada-U.S Free Trade
Agreement(FTA) 1989
 North American Free Trade Agreement
(NAFTA) 1994

18. Other trade agreements
 Regional/bilateral trade (Chile and Isreal) agreements
 Trading bloc (Guatemala, El Salvador, Honduras and Nigaragua)
 Group of Eight (G8)

19. Review Qs
 p139

20. The Future of International Trade
 European Union ( a single market)
 NAFTA

21. Impact of Cultural Differences
 Dealing with People
 Punctuality
 Greetings
 Nonverbal Communication Signals
 Good manners
 Decisions making

22. Impact of Cultural Differences

23. Impact of Cultural Differences

24. Research another country’s culture and
how is it different to yours
 How would these differences make
doing business more difficult?