globalization

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The process of national or regional economies and cultures unite.

6 factors for globalization:

1) communication technologies are upgraded.

2) more foreign investment

3)more international trade

4) high levels of migration

5) better transportation

6) more/easier flow of money

Canada's top trading partners:

1) United states

- makes up 75% of Canadas total exports

-exports 415 billion imports and 288 billion exports.

- trade surplus

2) China

- exports 23 billion

- imports 71 billion

- trade deficit

3) United Kingdom

-exports 17 billion

-imports 9 billion

- trade surplus

4) Mexico

- exports 7.8 billion

-imports 5 billion

- trade deficit

5) Germany

- exports 4 billion

-imports 18 billion

- trade deficit

6) South korea

- exports 5 billion

-imports billion

- trade deficit

7) Japan

-exports 12 billion

-imports 17 billion

-trade deficit

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Advantages of International Trade:

1) Goods are easier to access and have more choices

-goods can be brought anywhere.

2) goods cost less

-because of worldwide competition, prices remain constant and affordable.

3) larger market

- more products in more countries (more choices)

4) more potential employees

5) new technology

- companies can use e-commerce as a way to sell worldwide.

6) increased foreign investment

- more investment means more opportunities for the company to grow

two types of investment:

1)portfolio investment:

an individual corporation that purchases stocks or bonds

2) foreign direct investment:

a foreign company or individual purchases some or all of the controlling interest in a domestic company.

Disadvantages of international trade:

1) Increased foreign ownership

- leads to reduced exports because most exports happen from the home country.

- most revenue will be brought back to home country for further investment

- not loyal to foreign company.

2) Cultures are compromised

- critiques say that globalization only persuades a western style type of business management.