Unit 1 Overview – BUSINESS FUNDAMENTALS Chapter 1 – International Business Chapter 1 – History of Trade Chapter 1 – Globaliz-ation & Interdependance Chapter 1 – Helps and Hurts Culminating Activity for Unit 1 – Unit Test

Globalization Chapter 1 – Part 3 Chapter 1: WHAT IS TRADE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Globalization Globalization The process whereby national or regional economies and cultures have become integrated through: New global communication technologies ________________________ ___________________ Migration New forms of transportation __________________ Chapter 1: WHAT IS TRADE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Globalization Results: As companies become more multinational – nationality and borders become less important ________________ _____________________ Multinational companies conduct their business in ___________countries.

Fundamentals of International Business Globalization History of Globalization WHEN? Began after World War II with establishment of the United Nations and_______________ ______________between countries WHY? Economic ties between countries strengthened—_______________were negotiated, _________________, global corporations developed HOW? New technology allows international business to occur in _________, transforming the globe into one market WHAT? Has increased _______________of all nations, blurring political boundaries Chapter 1: WHAT IS TRADE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Interdependence RELY ON EACH OTHER Interdependence The _________of two or more nations on each other for products or services. Three main areas of interdependence: 1. __________________ 2. ___________________ 3. _____________________ Chapter 1: WHAT IS TRADE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Interdependence Primary industries (processing) The sector of the economy characterized by the _________________________from the earth or sea. Five major primary industries: ___________ ________________________ ________________ ____________ In Canada, water is sometimes included in this list as well ADD VALUE Chapter 1: WHAT IS TRADE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Interdependence © iStockphoto.com Secondary Industries Industries that _________ ____________________. Secondary manufacturing produces _______________(products used by businesses) and _______________(products purchased by individuals). ADD VALUE Chapter 1: WHAT IS TRADE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Interdependence ____________________ A factory owned by a company based in another country. Canada has a ____________________, based on businesses owned by foreign interests National Policy of 1879, - stated that businesses wanting to reach Canadian consumers needed to build factories in Canada Chapter 1: WHAT IS TRADE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Interdependence Example of a company with branch plants in Canada Chapter 1: WHAT IS TRADE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Fundamentals of International Business Interdependence ADD VALUE Tertiary industries (service sector) Industries that do not make a product or extract resources from the earth, but provide necessary services to consumers and other businesses. Examples include ______________________ ______________________________________. The Internet…….explain the importance to business activity and the interdependence of nations? Primary / Secondary / Tertiary Chapter 1: WHAT IS TRADE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.

Illustration of INTERDEPENDENCE: Relationship between logging & paper production. Tree is cut down Logs transported to a pulp & paper mill Pulp & Paper Mill Sheets of paper manufactured at the mill A tree nursery, saplings are planted to reforest

Homework Think About It Questions p. 21 Chapter 1 Quiz on Friday Think of an example of interdependence for a product that you use. Chapter 1 Quiz on Friday Chapter 1: WHAT IS TRADE? Fundamentals of International Business Copyright © 2010 Thompson Educational Publishing, Inc.