What is International Business?

What is a business?

Domestic Business Business is defined as the manufacturing and/or sale of goods and/or services to satisfy the needs and wants of consumers to make a profit Business is defined as the manufacturing and/or sale of goods and/or services to satisfy the needs and wants of consumers to make a profit Domestic Business is a business that makes most of it’s transactions within the borders of the country which it is based Domestic Business is a business that makes most of it’s transactions within the borders of the country which it is based - A domestic business in Canada is owned by Canadians, relies primarily on products and services made in Canada and sells goods and/or services to people - A domestic business in Canada is owned by Canadians, relies primarily on products and services made in Canada and sells goods and/or services to people

Describe a domestic business you know using the definition of business Can you also think of another term used for business?

Challenges Canadian companies that might appear to be purely domestic businesses, could on careful examination, have non-domestic transactions Canadian companies that might appear to be purely domestic businesses, could on careful examination, have non-domestic transactions Why? Because Canada relies heavily on imports for much of its machinery and products Why? Because Canada relies heavily on imports for much of its machinery and products Ex: What if a logging company cuts down trees in a Northern Ontario forest and sells the trees to to a pulp and paper mill in Thunder Bay Is this a domestic business?

Challenges Cont’d What if the company buys it’s logging equipment from China? Or is owned by an American firm? What if the company buys it’s logging equipment from China? Or is owned by an American firm? If any of these are true then it is an international business If any of these are true then it is an international business

International Business International Business is the economic system of transactions conducted between businesses located in different countries International Business is the economic system of transactions conducted between businesses located in different countries A domestic market means all your customers live in the country where your business operates A domestic market means all your customers live in the country where your business operates A foreign market refers to customers outside the country where you operate A foreign market refers to customers outside the country where you operate

Five Ways a Company could be considered IB Own a retail or distribution outlet in another country – ex. Tim Hortons Own a retail or distribution outlet in another country – ex. Tim Hortons Own a manufacturing plant in another country – ex. Bombardier Own a manufacturing plant in another country – ex. Bombardier Export to businesses in another country – ex. Lee Valley Tools Export to businesses in another country – ex. Lee Valley Tools Import from businesses in another country – ex. Sporting good stores in Canada who sell foreign made products (Nike, Puma, Reebok, etc) Import from businesses in another country – ex. Sporting good stores in Canada who sell foreign made products (Nike, Puma, Reebok, etc) Invest in businesses in another country Invest in businesses in another country

Best Lemonade Contest!!! Task: Task: Step 1: In groups of 4 you will come up with the ingredients to make the best lemonade ever! The judges will be your peers in this class Step 1: In groups of 4 you will come up with the ingredients to make the best lemonade ever! The judges will be your peers in this class Be creative, keep your target market in mind (what their taste preferences are, allergies etc), and don’t forget this is a friendly competition!!!! Be creative, keep your target market in mind (what their taste preferences are, allergies etc), and don’t forget this is a friendly competition!!!! Step 2: Determine Potential Profit: Step 2: Determine Potential Profit:  Make a list of all ingredients used, quantity, and price of each ingredient/resources used to make lemonade  Use the following formula to calculate potential profit: Selling Price – cost = profit Step 3: Identify where ingredients are from Step 3: Identify where ingredients are from Submit documents to Mrs. Forbes the day you present your lemonade to the class. Submit documents to Mrs. Forbes the day you present your lemonade to the class.

Lemonade Chart Ingredients (Foreign and Domestic) QuantityCostCountry Lemons15.10x15 =$1.50 U.S. Pitcher x 1 =1.00 China

Fun Bit Did you know that the Arab world first cultivated Lemons? Did you know that the Arab world first cultivated Lemons? They used them in cooking, as an antiseptic, and decoration in gardens They used them in cooking, as an antiseptic, and decoration in gardens Lemons became a trading commodity throughout the Middle East and the Mediterranean between CE 1000 and CE 1150 Lemons became a trading commodity throughout the Middle East and the Mediterranean between CE 1000 and CE 1150 Farmers in Genoa, Italy were responsible for the first real lemon cultivation Farmers in Genoa, Italy were responsible for the first real lemon cultivation Christopher Columbus introduce lemon seeds to South and Central America in 1493 – from there seeds were brought to California and Florida Christopher Columbus introduce lemon seeds to South and Central America in 1493 – from there seeds were brought to California and Florida Most of the lemons available in Canada today come from those two states Most of the lemons available in Canada today come from those two states