AFM 131 MIDTERM EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++ LATEST UPDATE
positive effects of globalization from a business perspective
- global comp drives innovation
- more access to resources and suppliers
- larger market
- better and cheaper resources
positives of globalization from a consumer perspective
- more options
- better quality
- lower price
positives of globalization from an employee perspective
- interact with people from around the world
- employers value the experience
challenges of globalization
- loss of jobs due to outsourcing
- operates 24/7
- cultural differences
story of target's failure from a consumer perspective
,- limited selection
- lack of deals
- US expectations not met
story of target's failure from business perspective
- underestimated complexity of our market and geography
- led to higher prices and inventory management
why do countries trade
- no country can produce all of the goods and services its people want and need
free trade
moving goods between countries without political or economic obstruction
exporting
selling products to another country
importing
buying products from another country
balance of trade
favourbale vs unfavourable
favourable balance of trade: trade surplus, exports > imports
unfavourable balance of trade: trade deficit, exports < imports
balance of payments
difference between money coming into a country and money leaving the country plus
money flows from tourism, foreign aid, military expenditures, and foreign investment
,theory of comparitive advantage
- countries export goods they product better
- countries import goods that they are shit at producing
theory of absolute advantage
monomoly on producing/can produce better than other countries
- doesn't last long
indirect vs direct export
- directly through sales to foreign customers
- indirectly through foreign located subsidiares of canadian companies
multinational companies
- manufacture and market products in many different countries
- manufacturing capabiity or physical presence in different countries
small business sector
- majority of exporters
who helps small busineses be more involved in global markets
- global affairs canada
- export development canada
directly vs indirect importing
- directly through purchases of foreign suppliers
- indirectly through purchases from Canadian subsidiaries of foreign companies
Canadian Border Services Agency
- protect citizens and economy
- enforce goods coming into canada
, us and canada trade relations
- our most significant trading partner
- too dependent and need to diversify
strategies for reaching global markets
- licensing
- exporting
- franchising
- contract manufacturing
- joint ventures
- strategic alliance
- FDI
licensing
company allows foreign company to produce and sell its product for a fee
effects of licensing
- additional revenue
- cost to produce are on foreign company
- must grant rights for an extended period
- risk of losing trade secrets
- quality control
franchising
selling rights to use an established business name and sell a product/service to others
in a given territory in a specific manner
contract manufacturing/outsourcing
COMPLETE SOLUTIONS GRADED A++ LATEST UPDATE
positive effects of globalization from a business perspective
- global comp drives innovation
- more access to resources and suppliers
- larger market
- better and cheaper resources
positives of globalization from a consumer perspective
- more options
- better quality
- lower price
positives of globalization from an employee perspective
- interact with people from around the world
- employers value the experience
challenges of globalization
- loss of jobs due to outsourcing
- operates 24/7
- cultural differences
story of target's failure from a consumer perspective
,- limited selection
- lack of deals
- US expectations not met
story of target's failure from business perspective
- underestimated complexity of our market and geography
- led to higher prices and inventory management
why do countries trade
- no country can produce all of the goods and services its people want and need
free trade
moving goods between countries without political or economic obstruction
exporting
selling products to another country
importing
buying products from another country
balance of trade
favourbale vs unfavourable
favourable balance of trade: trade surplus, exports > imports
unfavourable balance of trade: trade deficit, exports < imports
balance of payments
difference between money coming into a country and money leaving the country plus
money flows from tourism, foreign aid, military expenditures, and foreign investment
,theory of comparitive advantage
- countries export goods they product better
- countries import goods that they are shit at producing
theory of absolute advantage
monomoly on producing/can produce better than other countries
- doesn't last long
indirect vs direct export
- directly through sales to foreign customers
- indirectly through foreign located subsidiares of canadian companies
multinational companies
- manufacture and market products in many different countries
- manufacturing capabiity or physical presence in different countries
small business sector
- majority of exporters
who helps small busineses be more involved in global markets
- global affairs canada
- export development canada
directly vs indirect importing
- directly through purchases of foreign suppliers
- indirectly through purchases from Canadian subsidiaries of foreign companies
Canadian Border Services Agency
- protect citizens and economy
- enforce goods coming into canada
, us and canada trade relations
- our most significant trading partner
- too dependent and need to diversify
strategies for reaching global markets
- licensing
- exporting
- franchising
- contract manufacturing
- joint ventures
- strategic alliance
- FDI
licensing
company allows foreign company to produce and sell its product for a fee
effects of licensing
- additional revenue
- cost to produce are on foreign company
- must grant rights for an extended period
- risk of losing trade secrets
- quality control
franchising
selling rights to use an established business name and sell a product/service to others
in a given territory in a specific manner
contract manufacturing/outsourcing
