What is What is International International

Business?Business?

What is a business?

Domestic BusinessDomestic Business BusinessBusiness is defined as the is defined as the

manufacturing and/or sale of manufacturing and/or sale of goods and/or services to goods and/or services to satisfy the satisfy the needsneeds and and wantswants of consumers to make a of consumers to make a profit profit

Domestic BusinessDomestic Business is a is a business that makes most of business that makes most of it’s transactions within the it’s transactions within the borders of the country which borders of the country which it is basedit is based

- A domestic business in - A domestic business in Canada is owned by Canada is owned by Canadians, relies primarily on Canadians, relies primarily on products and services made products and services made in Canada and sells goods in Canada and sells goods and/or services to peopleand/or services to people

Describe a domestic Describe a domestic business you know business you know

using the definition of using the definition of businessbusiness

Can you also think of Can you also think of another term used for another term used for

business?business?

ChallengesChallenges Canadian companies that might appear to be Canadian companies that might appear to be

purely domestic businesses, could on careful purely domestic businesses, could on careful examination, have non-domestic transactionsexamination, have non-domestic transactions

Why? Because Canada relies heavily on Why? Because Canada relies heavily on imports for much of its machinery and imports for much of its machinery and productsproducts

Ex: What if a logging company cuts down Ex: What if a logging company cuts down trees in a Northern Ontario forest and sells trees in a Northern Ontario forest and sells the trees to to a pulp and paper mill in the trees to to a pulp and paper mill in Thunder Bay Thunder Bay

Is this a domestic business?Is this a domestic business?

Challenges Cont’dChallenges Cont’d

What if the company buys it’s What if the company buys it’s logging equipment from China? Or is logging equipment from China? Or is owned by an American firm? owned by an American firm?

If any of these are true then it is an If any of these are true then it is an international businessinternational business

International BusinessInternational Business

International BusinessInternational Business is the is the economic system of transactions economic system of transactions conducted between businesses located conducted between businesses located in different countries in different countries

A A domestic marketdomestic market means all your means all your customers live in the country where customers live in the country where your business operatesyour business operates

A A foreign marketforeign market refers to customers refers to customers outside the country where you operateoutside the country where you operate

Five Ways a Company could Five Ways a Company could be considered IBbe considered IB

Own a retail or distribution outlet in Own a retail or distribution outlet in another country – ex. Tim Hortonsanother country – ex. Tim Hortons

Own a manufacturing plant in another Own a manufacturing plant in another country – ex. Bombardier country – ex. Bombardier

Export to businesses in another country – Export to businesses in another country – ex. Lee Valley Toolsex. Lee Valley Tools

Import from businesses in another Import from businesses in another country – ex. Sporting good stores in country – ex. Sporting good stores in Canada who sell foreign made products Canada who sell foreign made products (Nike, Puma, Reebok, etc)(Nike, Puma, Reebok, etc)

Invest in businesses in another countryInvest in businesses in another country

Best Lemonade Best Lemonade Contest!!!Contest!!!

Task:Task: Step 1:Step 1: In groups of 4 you will come up with the In groups of 4 you will come up with the

ingredients to make the best lemonade ever! The ingredients to make the best lemonade ever! The judges will be your peers in this classjudges will be your peers in this class

Be creative, keep your target market in mind (what Be creative, keep your target market in mind (what their taste preferences are, allergies etc), and don’t their taste preferences are, allergies etc), and don’t forget this is a friendly competition!!!!forget this is a friendly competition!!!!

Step 2:Step 2: Determine Potential Profit: Determine Potential Profit: Make a list of all ingredientsMake a list of all ingredients used, quantity, and price used, quantity, and price

of each ingredient/resources used to make lemonade of each ingredient/resources used to make lemonade Use the following formula to calculate potential profit:Use the following formula to calculate potential profit:Selling Price – cost = profitSelling Price – cost = profit Step 3:Step 3: Identify where ingredients are from Identify where ingredients are from Submit documents to Mrs. Forbes the day you present Submit documents to Mrs. Forbes the day you present

your lemonade to the class.your lemonade to the class.

Lemonade ChartLemonade ChartIngredieIngredie

ntsnts(Foreign (Foreign

and and Domestic)Domestic)

QuantityQuantity CostCost CountryCountry

LemonsLemons 1515 .10x15 .10x15 =$1.50=$1.50

U.S.U.S.

PitcherPitcher 11 1.00 x 1 1.00 x 1 =1.00=1.00

ChinaChina

Fun BitFun Bit Did you know that the Arab world first Did you know that the Arab world first

cultivated Lemons?cultivated Lemons? They used them in cooking, as an antiseptic, They used them in cooking, as an antiseptic,

and decoration in gardensand decoration in gardens Lemons became a trading commodity Lemons became a trading commodity

throughout the Middle East and the throughout the Middle East and the Mediterranean between CE 1000 and CE 1150Mediterranean between CE 1000 and CE 1150

Farmers in Genoa, Italy were responsible for Farmers in Genoa, Italy were responsible for the first real lemon cultivationthe first real lemon cultivation

Christopher Columbus introduce lemon seeds Christopher Columbus introduce lemon seeds to South and Central America in 1493 – from to South and Central America in 1493 – from there seeds were brought to California and there seeds were brought to California and FloridaFlorida

Most of the lemons available in Canada today Most of the lemons available in Canada today come from those two statescome from those two states