Landed Cost of Imports > Calculations (tariffs, customs duties, insurance)
Big RTAs studied…NAFTA and size of the 3 members (population)
Mexico: 112.3 million
Canada: 34.5 million
US: 313.9 million what is APEC and who gets to be a member?
Asia pacific economic cooperation – made of 21 pacific rimmed countries to promote free trade and economic cooperation.
* WHO GETS TO BE A MEMBER
EU market size / members / EU countries in most economic trouble with debt & unemployment are Greece, Spain, Portugal, Ireland etc.
27 countries with over 480 million consumers, made of 27 countries located in Europe such as Austria, Belgium, Denmark, France, Germany…etc.
12.2% unemployment in the Eurozone
Greece needed a bailout of around $163 billion at first, then the second time was $157 billion
Began as slow growth in financial crisis of 08-09
Greece is particularly high
Global Entry Strategies Used by IBs; compare and contrast entry methods
Outsourcing – helps profits but why so controversial? (NIKE case study)
Ethical dilemmas- bad working conditions, expropriation of the workplace – low wages, long hours…etc.
Also unethical towards home country as you’re taking away their jobs, choosing profit.
Exporting & Importing - how is direct different than indirect exporting?
Direct – from producer to whatever country
Indirect – passes through another country before exporting
Comparative Advantage & how it relates to Canada (Specialization creates Surpluses)
Ability to produce a certain good/service at a lower opportunity cost/better than someone else, then trading it
Canada can trade it’s surplus for imports from other countries. (oil, lumber…commodities usually)
Rationalization – why? how is this done? Maple Leaf Foods & GM analyses
In order to become more efficient & Effective
Changing one’s organizational structure
Small changes: reprioritizing, refocusing, downsizing…etc.
Big changes: closing factories, building new ones, outsourcing…etc.
Maple Leaf Foods decided to close down certain factories, and build new ones after a listeria breakout.
GM decided to reprioritize and restructure. and focus on R&D more than profits. They also chose to downsize, eliminating four brands, a few dealers, and 20000+ workers. Canada’s Top 5 Trade (I & E) Partners – know the top 5 export markets and most frequent products we export (Moodle)
Top Export Markets: U.S., China, U.K., Japan, Mexico
Crude oil is number 1, cars
Impact of globalization on Canada – Good or Bad outcomes here?
High quality of life
Increasing standard of living
Good political relationships
Continuous economic growth
Loss of culture
Why Canada? (Reasons IBs bring so much FDI into Canada)
We have an abundance of commodities available
Also have knowledge workers
Concerns about FDI and foreign takeovers of our resource sectors (oil/gas, mining, farms)
i.e. nexen – controlling our resources and will be exploiting us
Service Sectors in Canada / approx. % Canadians working providing services now is?
The ‘Knowledge Economy’ shift (from written assessment)
Only way to increase productivity, and strive for economic growth.
-Creative, productive, innovative.
Must breed “gazelles”, and not mice (small companies that haven’t grown much), nor elephants (corporations)
What is intellectual property? How can a business license its own IP for profit?
You allow others to use your logo/brand
Intellectual property (IP) refers to creations of the mind: inventions, literary and artistic works, and symbols, names, images, and designs used in commerce.
Success & Failure in Foreign Markets – TIPS / 5 Things to Remember
Study economic trends –growth, gdp, PCI…etc.
Raise enough capital – avoid running over costs blahblah.
Study your competition – be 1st or find a niche market
Avoid political hotspots and cultural clashes (i.e. lingerie…