1. 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

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

3. 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.

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

5. 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.

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

11. 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.

12. 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

13. 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.