International Business

Chapter One

International Interdependence

Self-sufficiency• The ability to provide for all of your basic

needs, such as food, clothing, shelter, and water, without relying on anyone else.

• A country is self-sufficient when it provides everything its population needs to survive without having to trade with other countries.

• Why did nations trade then?

The beginnings of trade

• awareness of other goods• areas were more technologically developed• development of transportation

• providing food became easier• more options for earnings• longer and healthier lives• variety of food, crafts, materials, and

technology

Why trade?

Still Self-sufficient?

• Amish• Mennonites• Communes- shared responsibility for food

production, education, child care, etc.

First Trade Regulations

• local rulers in Europe collected taxes and tithes to maintain authority and lifestyle and finance wars (476 to 1000 C.E.)

• guilds controlled the mfging and sales of goods within towns and disallowed competitive imports and/or imposed import duties (1000 to 1500 C.E.)

Interdependence

• The reliance of two or more groups on the actions of one another to fulfill certain wants or needs

Interdependence begins

• See video (21 min) - “The Fur Trade and the Opening of Canada”

• Note key dates and point form key events, people, nations

• U.S. trade was more diversified into S.A. and was dependent on sugar

• Fur trade in Canada - HBC and North West Co.

• 1840s - silk replaces fur• 1867 Canada becomes a nation• Canadian Pacific Rail (CPR) completed in 1885• post WWII - trade organizations

Northern American Free Trade Agreement (NAFTA)

• 1993 Canada signed• Eliminates all tariff barriers between Canada

and US• Advantages• Disadvantages

Canada’s Economic Identity

Canada’s Major Industries

• Primary Industries• Manufacturing• Services

Primary Resources

• Agriculture• Fishing and Trapping• Forestry and Logging• Energy and mining

Service Industries

• Commercial Services• Travel• Transportation• Government

Advantages of International Trade

Disadvantages of International Trade

Barriers to International Trade

• Tariffs• Currency fluctuations• Investment regulations• Environmental restrictions• Foreign relations and trade sanctions• Safety regulations

Currency Fluctuations

• Which is better for business, a strong dollar or a weak dollar?

• Read article, “The Canadian Dollar”

Business And The Environment:

The Story of Electronics

http://www.storyofstuff.org/movies-all/story-of-electronics/