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International Interdependence

International Interdependence. Chapter 1. What is International Business?. Traditionally, families grew their own food and made their own clothes. As population increased and production methods improved, people began to depend on others for goods/services

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International Interdependence

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  1. International Interdependence Chapter 1

  2. What is International Business? • Traditionally, families grew their own food and made their own clothes. • As population increased and production methods improved, people began to depend on others for goods/services • As dependence grew, more people specialized their work.

  3. What is International Business? • Today, many people still work to provide for daily needs. Why:? Most nations don’t have the extensive production & distribution facilities of Canada, US, Japan and W. Europe. • Domestic Business: business activities within a country’s borders. • International Business: all business activities needed to create, ship & sell goods/services across national borders.

  4. Evolution of global Trade • Self-sufficient: the ability to provide for all basic needs without relying on anyone else • (food, clothing, shelter & water) • Canada’s Aboriginal people were largely self-sufficient • made clothes, gathered food • However they did trade: Northern tribes traded meat, hides & fur for corn, beans, squash, tobacco from southern tribes • Self-sufficient “communes” developed • refused to give up self-sufficiency that shared responsibility

  5. Evolution of global Trade • First Early Trade: occurred in Mediterranean Sea area (i.e. China traded silk & tea for spices from India) • Middle Ages (476 -1000 ce): Economic activity concentrated in larger towns, where guilds developed • Guilds:Association of merchants and craftspeople. • as powerful as government • Controlled all trade put import taxes on foreign goods.

  6. Evolution of global Trade • European exploration, settlement, expansion of trade markets & empire building occurred (1500-1600’s)

  7. Think Critically • What are the advantages of a completely self-sufficient society? • What are the disadvantages of a completely self-sufficient society?

  8. SELF SUFFICENCY

  9. 1.2 History of Canadian Trade • Cabot landed in Newfld looking for spices found fish • European ships came to trade with Aboriginals for fur • English & French fought for control of Canada • English & French were given trade rights to Hudson’s Bay Company (HBC) • HBC controlled the fur trade (and politics) in Canada • Interdependence: reliance of 2 or more groups on the actions of one another to fulfil certain needs or wants. • Protectionism: the practice of protecting domestic industries

  10. Think Critically • Read Hudson’s Bay Company case on page 11 • Answers questions 1 – 2

  11. History of Canadian Trade Timeline • Summarize an important event in Canadian History (assigned group (2-3) & topic) • Create a NEWSFLASH card (1/2 page) • Include (5W + how it impacted Canadian trade) • Include a visual that relates to the event • Use colour, be creative • Present Newsflash to the Class (20 minutes) • Post Newsflash on the IB timeline

  12. 1.3 Canadian Industry Primary Industries: • Raw materials (from land, sea, water) • Processed slightly then sold to other business to make other products • Capital intensive industry: large investment of money required

  13. 1.3 Canadian Industry Manufacturing Industry: • Makes finished products out of raw materials • Labour intensive industry: requires large number of skilled or unskilled workers • Processing: form of a product altered (milk to cheese) • Fabrication: building or constructing something from raw materials (Wood to desk or housing

  14. 1.3 Canadian Industry Service Industry: • Provides intangibles people need or want. • Activities performed by experts in exchange for money (doctor, insurance, hair stylist) • Consulting: a service of providing advise (financial, law)

  15. 1.4 Advantages of International Trade • Meeting our needs • Job Creation • Attracting investment • New Technology & Materials • Diverse Products & Services

  16. 1.4 Disadvantages of International Trade • Support of Non-Democratic Systems • Cultural Identity Issues • Social Welfare Issues • Environmental Issues • Political Issues

  17. 1.5 Barriers to International Trade • Tariffs • Currency fluctuations • Investment Regulations • Environmental Restrictions • Foreign Relations & Trade Sanctions • Safety Regulations • Immigration Policies (Visitors, Immigrants, Refugees)

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