BBB4M International Business Review Concepts

Chapter 1: Trade  Domestic business, international business, domestic market, foreign market, globalization  ways for a business to be considered international  3 categories of interdependence: primary, manufacturing (primary, secondary), tertiary  Capital-intensive, labour intensive  How international business (a) helps Canadians (b) hurts Canadians  problems with foreign ownership

Chapter 2: Trade  Why Canadian companies participate in international trade  Foreign portfolio investment (capital markets, money markets), Importing (global sourcing), exporting, value added, licensing agreement (exclusive distribution rights), franchising, joint ventures, foreign subsidiaries (foreign direct investment)  Trade barriers: tariffs (winners and losers), quotas, embargoes, sanctions, foreign investment restrictions, standards, currency fluctuations  Factors affecting exchange rates, exchange conversion calculations: If 1 Cdn $ = $1.03 U.S., what does $200 U.S. = in Cdn dollars?  High Canadian dollar (winners and losers)

Chapter 3: Culture  Culture, subculture, counterculture, customs  Canadian mosaic, cultural determinants: geography, history, religion  Cultural awareness and business (4 factors: extent, control, degree, number of foreign operations)  The impact of culture on: products, services, labour, discrimination, wages, standards, indigenous cultures  Business meetings and negotiations (time, spatial, non-verbal, etiquette)  Hofstede’s cultural dimensions (PDI, UAI, MAS, IDV, LTO)

Chapter 4: Economics/Politics  Economic systems: market, centrally planned, mixed (Other terms, private property, profit, competition, country examples, political parties)  Political systems: democracy, autocracy  Classifications of economic development: underdeveloped, developing, developed  Business cycle (graph, 4 stages, indicators, government response in recession)  Economics of trade: absolute and comparative advantage, opportunity cost  Role of government: laws/regulations, trade offices, trade missions, lobbying

Chapter 5: Trade agreements/Organizations  Globalization: positive and negative effects  Strategies: global, multidomestic, transnational  Free trade: arguments for and against  Bilateral/Multilateral Trade, Trading Bloc  Trade Agreements: NAFTA, EU,  Trade Organizations: WTO, APEC, G8, G20, OECD, World Bank, IMF, OPEC, UN Chapter 6: Social Responsibility  Corporate Social Responsibility(CSR): benefits and criticisms  Stakeholders: primary and secondary  Business Ethics, Ethical Dilemma  Cultural Relativism vs. Ethical Imperialism  Ethical Issues: pollution, resource depletion, sweatshops, corporate corruption, dumping/predatory pricing, poverty  Solutions: sustainable development, microcredit  Non-Government Organizations (NGOs), e.g. ISO

Chapter 7: Marketing  Marketing, market research (secondary data, primary data)  The international marketing mix, 4 P’s: 1. Product (product development) 2. Place (centralized, decentralized, e-commerce, sales agent, trade show, branch plant, licensing agreement, royalty) 3. Price 4. Promotion (advertising, sales, promotion)  2 C’s: 1. Consumers (target market, demographic information, ethnocentrism) 2. Competition (direct, indirect, competitive advantage)