RSM100Y1 Chapter 4: Chapter 4.docx
Document Summary
Generates wealth by creating commodities for canadians and international customers (i. e. oil, natural gas, gold, etc: resources that businesses need to make their outputs. Companies lf> new markets for their goods/services: also lf> cost-effective factory locations. Business cannot rely on domestic sales alone: other country = new market/profit opportunities. Export; domestically produced goods sold in foreign countries. Canadian exports + imports = ~30% of gdp. Import; foreign products purchased by domestic customers: 10th largest exporter, e/i worth more than bil each. International business/trade: must work w/ new social/cultural practices, different economic/political environment, must change business plans to fit those requirements of different. Important for financial success (expanding into other countries) itd bank bought ameritrade in 2006: bombardier sells jet aircrafts around the world, takes advantage of large population, healthy resources, etc, increases economic growth by providing: Operating abroad depend on: availability, price, quality of labour, natural resources, capital, and entrepreneurship.
