1. International Interdependence Chapter 1

2. What is International Business? • Traditionally, families grew their own food and made their own clothes. • As population increased and production methods improved, people began to depend on others for goods/services • As dependence grew, more people specialized their work.

3. What is International Business? • Today, many people still work to provide for daily needs. Why:? Most nations don’t have the extensive production & distribution facilities of Canada, US, Japan and W. Europe. • Domestic Business: business activities within a country’s borders. • International Business: all business activities needed to create, ship & sell goods/services across national borders.

4. Evolution of global Trade • Self-sufficient: the ability to provide for all basic needs without relying on anyone else • (food, clothing, shelter & water) • Canada’s Aboriginal people were largely self-sufficient • made clothes, gathered food • However they did trade: Northern tribes traded meat, hides & fur for corn, beans, squash, tobacco from southern tribes • Self-sufficient “communes” developed • refused to give up self-sufficiency that shared responsibility

5. Evolution of global Trade • First Early Trade: occurred in Mediterranean Sea area (i.e. China traded silk & tea for spices from India) • Middle Ages (476 -1000 ce): Economic activity concentrated in larger towns, where guilds developed • Guilds:Association of merchants and craftspeople. • as powerful as government • Controlled all trade put import taxes on foreign goods.

6. Evolution of global Trade • European exploration, settlement, expansion of trade markets & empire building occurred (1500-1600’s)

7. Think Critically • What are the advantages of a completely self-sufficient society? • What are the disadvantages of a completely self-sufficient society?

8. SELF SUFFICENCY

9. 1.2 History of Canadian Trade • Cabot landed in Newfld looking for spices found fish • European ships came to trade with Aboriginals for fur • English & French fought for control of Canada • English & French were given trade rights to Hudson’s Bay Company (HBC) • HBC controlled the fur trade (and politics) in Canada • Interdependence: reliance of 2 or more groups on the actions of one another to fulfil certain needs or wants. • Protectionism: the practice of protecting domestic industries

10. Think Critically • Read Hudson’s Bay Company case on page 11 • Answers questions 1 – 2

11. History of Canadian Trade Timeline • Summarize an important event in Canadian History (assigned group (2-3) & topic) • Create a NEWSFLASH card (1/2 page) • Include (5W + how it impacted Canadian trade) • Include a visual that relates to the event • Use colour, be creative • Present Newsflash to the Class (20 minutes) • Post Newsflash on the IB timeline

12. 1.3 Canadian Industry Primary Industries: • Raw materials (from land, sea, water) • Processed slightly then sold to other business to make other products • Capital intensive industry: large investment of money required

13. 1.3 Canadian Industry Manufacturing Industry: • Makes finished products out of raw materials • Labour intensive industry: requires large number of skilled or unskilled workers • Processing: form of a product altered (milk to cheese) • Fabrication: building or constructing something from raw materials (Wood to desk or housing

14. 1.3 Canadian Industry Service Industry: • Provides intangibles people need or want. • Activities performed by experts in exchange for money (doctor, insurance, hair stylist) • Consulting: a service of providing advise (financial, law)

15. 1.4 Advantages of International Trade • Meeting our needs • Job Creation • Attracting investment • New Technology & Materials • Diverse Products & Services

16. 1.4 Disadvantages of International Trade • Support of Non-Democratic Systems • Cultural Identity Issues • Social Welfare Issues • Environmental Issues • Political Issues

17. 1.5 Barriers to International Trade • Tariffs • Currency fluctuations • Investment Regulations • Environmental Restrictions • Foreign Relations & Trade Sanctions • Safety Regulations • Immigration Policies (Visitors, Immigrants, Refugees)