Grade 12 International Business Final Notes
(BBB4M)
Transactions - correct answer ✔✔ An exchange of things that is of value.
Domestic Business - correct answer ✔✔ A business that makes most of its transactions within
the borders of the country in which its based.
International Business - correct answer ✔✔ The economic system of transactions conducted
between businesses located in different countries
Domestic Market - correct answer ✔✔ The customers of a business who live in a country where
the business operates
Foreign Market - correct answer ✔✔ The customers of a country that is different from your
own.
What are 5 main ways a business is considered International business? - correct answer ✔✔ -
Own a retail distribution outlet in another country
- Own a manufacturing plant in another country.
- Export to businesses in another country
- Import from businesses in another country
- Invest in businesses in another country.
Trade - correct answer ✔✔ The action of buying and selling goods and services
,Duty/tariff - correct answer ✔✔ A type of tax that most countries place on imports in order to
make the price of domestic goods competitive
Globalization - correct answer ✔✔ A process whereby national or regional economies and
cultures have become integrated through new global communication technologies, foreign
direct investment, international trade, migration, new forms of transportation, and the flow of
money.
Interdependence - correct answer ✔✔ The reliance of two or more nations on each other for
products or services.
Primary industries - correct answer ✔✔ The sector of the economy characterized by the
extraction of natural resources from the earth of sea, and beginning to process those resources
(eg: agriculture, fishing, hunting, forestry & mining, water as sixth)
Secondary Industries - correct answer ✔✔ Industries that create a finished, usable product
(trucks, machinery, electrical equipment, clothing, TV, packaged food)
Branch plant - correct answer ✔✔ A factory owned by a company based in another country
Tertiary Industries - correct answer ✔✔ Provides necessary services to consumers and other
businesses (eg: banks, construction, transportation, communications)
Exports - correct answer ✔✔ To send goods and services to another country, especially for sale
Foreign direct investment (FDI) - correct answer ✔✔ Investment in a company that is located in
a different country than the investor to control some or all of the business' operations
, Importing - correct answer ✔✔ Bringing products or services into a country
Global sourcing - correct answer ✔✔ The process of buying equipment, capital goods, raw
materials, or services from around the world
Exporting - correct answer ✔✔ Companies outside of Canada purchase Canadian goods and
services
Value added - correct answer ✔✔ The amount of worth that is added to a product as it is
processed.
Licensing agreement - correct answer ✔✔ Gives a company permission to use a product,
service, brand name, or patent in exchange for a fee or royalty
Exclusive distribution rights - correct answer ✔✔ Allows a company to be the only distributor of
a product in a geographic or in a specific country.
Franchise - correct answer ✔✔ An agreement to use a company's name, services, products, and
marketing
Joint Venture - correct answer ✔✔ Occurs when two or more businesses (one usually located in
a foreign country) form a new company with shared ownership
Foreign subsidiary - correct answer ✔✔ A wholly owned subsidiary that exists when a parent
company allows a branch of its company, in another country, to be run as an independent
entity.
(BBB4M)
Transactions - correct answer ✔✔ An exchange of things that is of value.
Domestic Business - correct answer ✔✔ A business that makes most of its transactions within
the borders of the country in which its based.
International Business - correct answer ✔✔ The economic system of transactions conducted
between businesses located in different countries
Domestic Market - correct answer ✔✔ The customers of a business who live in a country where
the business operates
Foreign Market - correct answer ✔✔ The customers of a country that is different from your
own.
What are 5 main ways a business is considered International business? - correct answer ✔✔ -
Own a retail distribution outlet in another country
- Own a manufacturing plant in another country.
- Export to businesses in another country
- Import from businesses in another country
- Invest in businesses in another country.
Trade - correct answer ✔✔ The action of buying and selling goods and services
,Duty/tariff - correct answer ✔✔ A type of tax that most countries place on imports in order to
make the price of domestic goods competitive
Globalization - correct answer ✔✔ A process whereby national or regional economies and
cultures have become integrated through new global communication technologies, foreign
direct investment, international trade, migration, new forms of transportation, and the flow of
money.
Interdependence - correct answer ✔✔ The reliance of two or more nations on each other for
products or services.
Primary industries - correct answer ✔✔ The sector of the economy characterized by the
extraction of natural resources from the earth of sea, and beginning to process those resources
(eg: agriculture, fishing, hunting, forestry & mining, water as sixth)
Secondary Industries - correct answer ✔✔ Industries that create a finished, usable product
(trucks, machinery, electrical equipment, clothing, TV, packaged food)
Branch plant - correct answer ✔✔ A factory owned by a company based in another country
Tertiary Industries - correct answer ✔✔ Provides necessary services to consumers and other
businesses (eg: banks, construction, transportation, communications)
Exports - correct answer ✔✔ To send goods and services to another country, especially for sale
Foreign direct investment (FDI) - correct answer ✔✔ Investment in a company that is located in
a different country than the investor to control some or all of the business' operations
, Importing - correct answer ✔✔ Bringing products or services into a country
Global sourcing - correct answer ✔✔ The process of buying equipment, capital goods, raw
materials, or services from around the world
Exporting - correct answer ✔✔ Companies outside of Canada purchase Canadian goods and
services
Value added - correct answer ✔✔ The amount of worth that is added to a product as it is
processed.
Licensing agreement - correct answer ✔✔ Gives a company permission to use a product,
service, brand name, or patent in exchange for a fee or royalty
Exclusive distribution rights - correct answer ✔✔ Allows a company to be the only distributor of
a product in a geographic or in a specific country.
Franchise - correct answer ✔✔ An agreement to use a company's name, services, products, and
marketing
Joint Venture - correct answer ✔✔ Occurs when two or more businesses (one usually located in
a foreign country) form a new company with shared ownership
Foreign subsidiary - correct answer ✔✔ A wholly owned subsidiary that exists when a parent
company allows a branch of its company, in another country, to be run as an independent
entity.
