the process by which national or regional

economies and cultures have become integrated and

interdependent through global communication technologies,

foreign direct investment, international trade, migration, new

forms of transportation, and the flow of money.

the trade of goods and services, capital,

knowledge, and technology across borders on a global scale.

reasons why countries engage in

international trade.

how international trade can help Grenada become a more developed country.

Explain how international trade has affected the price

of products worldwide.

This is one in which the transactions are

made within the borders of the country in

which the business is based.

All supplies and ingredients are purchased

directly from the home country and sold in

the home country.

Today it is very difficult for businesses to

become totally domestic.

This is one in which the transactions are

not only made within the borders of the

country but among different countries

worldwide.

Supplies and ingredients are not only

purchased domestically but from other

businesses outside of the home country as

well.

Limited Market Size, Local Competition, weak local economy, Local costs like rent, wages, and utilities may be high, Limited Access to Resources, Regulations and Taxes, Changes in Consumer Preferences

Cultural Differences, Legal and Regulatory Barriers, Exchange Rate, Political Instability, Import Tariffs and Trade Barriers, Supply Chain Disruptions

factors that encouraged the emergence of

globalization over the years.

Faster and safer air transportation of cargo and

people. Cost has reduced as more efficient turbojet

engines are developed;

Faster and more efficient freight transportation by

truck, ship, and rail;

Intermodal freight transportation – Containerization.

With the increased use of Cell phones, smartphones, and

videoconferencing, telecommunication services for the

electronic transmission of voice, fax, or data between distant

parties have become much easier.

Development in computers and computer software, GPS,

and Internet allow for business activities to occur in

real-time:

Foreign deals negotiations & Contracts

Invoicing and Shipping manifest

Product tracking and inquiry

Money transfers and payments

Growth of the middle class in newly developed

countries – increases consumerism/consumer activity;

Increased competition between nations for

resources due to a global demand for goods and

services;

Increased use of social networking among countries;

Populated countries such as India and China begin to

develop their countries which increases demand for

goods and services;

Rich companies create jobs in underdeveloped

countries to raise standards of living there;

Describe ways in which international business activity

develops interdependence among nations.

This is the extraction and initial processing of raw materials from

the sea and earth. This industry continues to be Canada’s major

exports.

industries include:

Energy & mining

Agriculture

Forestry & logging

Fishing and hunting

Water (In Canada, water is sometimes included in this list as

well)

industries create a finished, usable product.

manufacturing produces capital goods (products used

by businesses) and consumer goods (products purchased by

individuals).producing capital goods and

consumer goods . E.g. using wood to make tables.

trees -> wood -> lumber -> table

Theses are industries that do not make a product or extract

resources from the earth, but provide necessary services to

consumers and other businesses. Also referred to as the

service industry.

Examples include banking, construction, communications,

transportation, and retail sales.

It is often referred to as Quaternary industry to distinguish

the need for highly educated skilled workers;

Benefits of International Trade

1. Access to a Wider Variety of Goods and Services
   Consumers get more choices and often better quality products.

2. Economic Growth and Job Creation
   Exports create jobs and boost national income.

3. Lower Prices and Increased Competition
   Trade promotes competition, which can reduce prices for consumers.

4. Specialization and Efficiency
   Countries produce what they are best at, using resources more efficiently.

5. Technology and Knowledge Transfer
   Trade encourages sharing of innovations and expertise.

1. Domestic Job Losses
   Some local industries may suffer and lose jobs due to foreign competition.

2. Dependency on Other Countries
   Relying too much on imports can be risky during political or economic crises.

3. Trade Imbalances
   Countries may run persistent trade deficits, affecting their economies.

4. Cultural Erosion
   Increased global trade can sometimes reduce local cultural identity.

5. Environmental Impact
   Shipping goods internationally increases pollution and carbon emissions.