BBB4M1 Exam Review Questions with
Verified Answers
Trade surplus/deficit - Answer-Exports > Imports / Imports > Exports
International Business - Answer-A business that conducts financial transactions outside
its native country.
Transaction - Answer-An exchange of things of value.
Domestic Business - Answer-Makes most of its transactions within the borders of the
country in which it's based.
Business - Answer-Is defined as an organization that produces a good or offers a
service in exchange for money with the goal of making a profit.
Trade with USA - Answer-Canada's largest trading partner.
Trade with Asia - Answer-China is Canada's largest trading partner in Asia followed by
Japan.
Domestic Market - Answer-Goods and services that are brought and sold within the
borders of a single country.
1. Why do countries trade? - Answer-To get the goods we do not have in exchange for
the goods we do have, and to build relations.
2. What are some advantages of International trade for Canadians? - Answer-More Job
Opportunities.
Expanding Target Markets & Increasing Revenues.
Improved Risk Management.
Greater Variety of Goods Available.
Better Relations Between Countries.
Opportunities to Specialize.
3. Why does India attract international business? - Answer-Major Centre for outsourcing
services and manufacturing, one of the world's fastest growing economies.
4. Who is Canada's largest trading partners? - Answer-United States, European Union,
and China
Chapter 2- - Answer-
, Licensing Agreements - Answer-Gives a company permission to use the product,
service, brand name, or patient in exchange for a fee or royalty.
Joint Ventures - Answer-Occurs when two businesses, one of which is usually located
in a foreign country, form a new company with a shared ownership.
Franchising - Answer-An agreement to use the company's name, services, products,
and marketing. The franchise signs a contract that agrees to follow the franchisors (the
parent company's) rules.
Tariffs - Answer-Taxes or duties charged on imported products or services. Raises the
cost of imported goods that consumers will purchase locally manufactured products
instead of imports.
Trade Quotas - Answer-Government imposed limit on the amount of a product that can
be imported. Protects domestic products decreasing foreign competition.
Trade Embargo - Answer-When trade between countries is banned completely.
1. Factors Affecting the Exchange Rate - Answer-Canada's floating rate which makes
our exchange rate change with respect to other currency's. Supply and demand also
dictates the exchange rate.
2. Why is the Canadian dollar lower than the U.S. dollar - Answer-Low oil prices
Housing prices in major cities are inflated
Very dependent on other countries
Chapter 3- - Answer-
Canada's Economy - Answer-Based primarily on the service industry.
Canada's Banking Industry - Answer-The "big 5" banks: Royal Bank of Canada (RBC),
TD Canada Trust, CIBC, BMO, and Scotiabank.
Canada's Service Industry - Answer-The world's 6th largest exporter in services (in
2019). Financial services, banking and Insurance, architectural engineering, and other
scientific and technical services.
Canada's Cultural Industry - Answer-Books, Movies & TV, Visual art, Theatre.
Increased Productivity - Answer-Newer technology and equipment or an innovation.
1. Reasons Canada attracts foreign investment - Answer-Low cost, low tax
environment. Highly educated and competitive workforce. Gateway to North America
and the world. One of the world's most stable financial sectors. Great place to live and
prosper.
Verified Answers
Trade surplus/deficit - Answer-Exports > Imports / Imports > Exports
International Business - Answer-A business that conducts financial transactions outside
its native country.
Transaction - Answer-An exchange of things of value.
Domestic Business - Answer-Makes most of its transactions within the borders of the
country in which it's based.
Business - Answer-Is defined as an organization that produces a good or offers a
service in exchange for money with the goal of making a profit.
Trade with USA - Answer-Canada's largest trading partner.
Trade with Asia - Answer-China is Canada's largest trading partner in Asia followed by
Japan.
Domestic Market - Answer-Goods and services that are brought and sold within the
borders of a single country.
1. Why do countries trade? - Answer-To get the goods we do not have in exchange for
the goods we do have, and to build relations.
2. What are some advantages of International trade for Canadians? - Answer-More Job
Opportunities.
Expanding Target Markets & Increasing Revenues.
Improved Risk Management.
Greater Variety of Goods Available.
Better Relations Between Countries.
Opportunities to Specialize.
3. Why does India attract international business? - Answer-Major Centre for outsourcing
services and manufacturing, one of the world's fastest growing economies.
4. Who is Canada's largest trading partners? - Answer-United States, European Union,
and China
Chapter 2- - Answer-
, Licensing Agreements - Answer-Gives a company permission to use the product,
service, brand name, or patient in exchange for a fee or royalty.
Joint Ventures - Answer-Occurs when two businesses, one of which is usually located
in a foreign country, form a new company with a shared ownership.
Franchising - Answer-An agreement to use the company's name, services, products,
and marketing. The franchise signs a contract that agrees to follow the franchisors (the
parent company's) rules.
Tariffs - Answer-Taxes or duties charged on imported products or services. Raises the
cost of imported goods that consumers will purchase locally manufactured products
instead of imports.
Trade Quotas - Answer-Government imposed limit on the amount of a product that can
be imported. Protects domestic products decreasing foreign competition.
Trade Embargo - Answer-When trade between countries is banned completely.
1. Factors Affecting the Exchange Rate - Answer-Canada's floating rate which makes
our exchange rate change with respect to other currency's. Supply and demand also
dictates the exchange rate.
2. Why is the Canadian dollar lower than the U.S. dollar - Answer-Low oil prices
Housing prices in major cities are inflated
Very dependent on other countries
Chapter 3- - Answer-
Canada's Economy - Answer-Based primarily on the service industry.
Canada's Banking Industry - Answer-The "big 5" banks: Royal Bank of Canada (RBC),
TD Canada Trust, CIBC, BMO, and Scotiabank.
Canada's Service Industry - Answer-The world's 6th largest exporter in services (in
2019). Financial services, banking and Insurance, architectural engineering, and other
scientific and technical services.
Canada's Cultural Industry - Answer-Books, Movies & TV, Visual art, Theatre.
Increased Productivity - Answer-Newer technology and equipment or an innovation.
1. Reasons Canada attracts foreign investment - Answer-Low cost, low tax
environment. Highly educated and competitive workforce. Gateway to North America
and the world. One of the world's most stable financial sectors. Great place to live and
prosper.
