Foundation of Trade

What is international business (IB)?

• Local trade within a country

• Business activities on a global scale

• Selling goods in a local market

• Domestic business operations

How did international business develop according to the text?

• By making your own clothes and growing your own food

• By increasing population and improving production/distribution methods

• By reducing the need for goods and services

• By decreasing production and distribution methods

What distinguishes goods from services?

• Goods are activities; services are physical items

• Goods are physical items; services are activities

• Goods are advisory; services are manufactured

• Goods are semi-manufactured; services are raw materials

What happens to an agricultural product quarantined because of a virus?

• It is sold at a discount

• It is burned

• It is stored for later use

• It is sent back to the origin

What is a key characteristic of foreign direct investment?

• It involves only domestic companies.

• It is a short-term investment.

• It often involves acquiring a controlling interest in a foreign company.

• It is primarily for non-profit purposes.

How does FDI contribute to economic growth in Canada?

• By decreasing productivity

• By increasing competition

• By reducing technology transfer

• By limiting foreign access

How might FDI influence decision-making in Canadian businesses?

• Increase in local autonomy

• More collaborative decision-making

• Reduced control over decisions

• Enhanced strategic planning

What is a potential social impact of FDI?

• Strengthening of community ties

• Unchanged social dynamics

• Unwelcome social changes

• Increased cultural homogeneity

What is a potential effect of FDI on cultural aspects?

• Preservation of local culture

• Cultural enrichment

• Cultural and social changes

• Strengthening of cultural identity

What is the main focus of tax incentives offered by Canada?

• To attract foreign direct investment (FDI).

• To increase local business taxes.

• To promote environmental sustainability.

• To support healthcare funding.