Business Question

User Generated

Nyvnv

Writing

York University

Description

Hi, I have an assignment that needs to be done and I will get 3 hours to complete it. I will be given a case study which will probably be no longer than 3 pages max. It will follow up with 6 questions related to the article and some theories need to be applied to it. The information on theories and the content to be able to answer the questions will come from the chapter powerpoints ( 6 chapters ), so please go over them just so its easier to apply the theories and understand the concept. The powerpoints also have notes at the bottom to help you further. This assignment will start at 2PM EST - 5PM EST APRIL 15, so PLEASE be available. The questions will not be that difficult, i will attach 4 of the 6 powerpoints of chapters and 1 case example with the solution so that you can have a look for a better understanding. Once you accept it, I will send the remaining 2 chapters

You will only be answering 4 of the 6 questions. I will answer 2 to make it easier for you.

Here is how the questions need to be answered:

- Identify and Introduce the correct theory and approach
- Define and explain the terms and who/what is involved in the theory/concept
- Apply the theory to the case
- Use lots of examples to support your argument
- Write in sentences and paragraphs - not bullets
- Heading and subheadings to make it organized
- Make an assumption if you can't find the example
- Write as much as you can (there is not max or min because quality is important, but more is better - so 1.5 - 2 pages per question should be fine).

An example of a question could be:
What stage of the industry lifecycle model do you think the industry is in and why? Explain the characteristics of this stage and how they are relevant. (15 marks)

So the questions are not really hard, I just think It would be hard to go through them in 3 hours for me. PLEASE do a great job with this, and must be available at 2PM EST-5PM EST APRIL 15th when the assignment becomes available. If you do a good job then I WILL USE YOU AGAIN! Please do it if you can because it is important. PLEASE NO PLAGIARISM !

Thank You!

Unformatted Attachment Preview

Economic Forces Oh Canada, What is Your Economy Like? Reading: Karakowsky & Guriel, Copyright 2015 Pearson Canada Inc. 1 Learning Objectives 1. Define the elements of an economic environment. 2. Describe four types of economic systems. 3. Compare four types of competition. 4. Discuss how economic elements can affect business. 5. Explain the different types of unemployment. Copyright 2015 Pearson Canada Inc. 2 How is our economy doing? Is it the best of times, the worst of times, or something in between? What do we need to consider? Copyright 2015 Pearson Canada Inc. 3 How is our economy doing? Growing/contracting Consumer spending (eg. car sales) Housing market Unemployment Gross domestic product (GDP) Interest rates Inflation Copyright 2015 Pearson Canada Inc. 4 How is our economy doing? (as of December 2018) News Video: https://toronto.citynews.ca/video/2018/12/05/ pulse-check-on-canadas-economy/ Copyright 2015 Pearson Canada Inc. 5 What is an economic environment? 1. Individuals 2. Businesses 3. Government Copyright 2015 Pearson Canada Inc. 6 • 1. Individuals -Work (for business or self) -Spend money (consumer spending) -Pay taxes (so govt. can spend) Copyright 2015 Pearson Canada Inc. 7 2. Businesses Five Factors of Production Copyright 2015 Pearson Canada Inc. 8 3. Government Creates laws (to guide/promote the economy) Promotes tax credits Ensures qualified labour Copyright 2015 Pearson Canada Inc. 9 How do Economists Analyze the Economy?  Microeconomics  Macroeconomics Copyright 2015 Pearson Canada Inc. 10 How do Economists Analyze the Economy?  Microeconomics  is the study of smaller components of the economy, such as individuals and businesses.  For example, microeconomists analyze consumer demand and existing supply. Copyright 2015 Pearson Canada Inc. 11 How do Economists Analyze the Economy?  Macroeconomics  the study of larger economic issues involving the economy as a whole.  more complex, since it considers data for large groups of people and firms.  Examples of macroeconomic issues include unemployment, consumption, inflation, gross domestic product, and price levels. Copyright 2015 Pearson Canada Inc. 12 What is an economic system? Copyright 2015 Pearson Canada Inc. 13 Types of economic systems Market economy Communism Socialism Mixed Economy Copyright 2015 Pearson Canada Inc. 14 Types of economic systems Market economy  also referred to as a capitalist economy or a private enterprise system, is a free market system in which individuals can decide to be employees or owners of their own business.  Market economies offer entrepreneurs certain rights —for example,  the right to own private property  the right to compete  the right to make their own choices,  the right to make a profit.  The right to make a profit is probably the most significant incentive for individuals to take the risks involved in establishing a business. Copyright 2015 Pearson Canada Inc. 15 Types of economic systems Communism  is the economic system that once existed under the Soviet Union. Instead of individuals freely deciding which products to produce, the government owned essentially all of the country’s resources, and economic decisions were made centrally.  The government decided which goods and services were produced and in what quantities.  Communism tended to limit an individual’s choices, such as the ability to change jobs or to relocate. Copyright 2015 Pearson Canada Inc. 16 Types of economic systems Socialism  is an economic system whereby the government has large ownership in or control over major industries essential to the country’s economy. Coal mines, transportation, steel mills, health care, banking, and utilities are a few examples. Copyright 2015 Pearson Canada Inc. 17 Types of economic systems Mixed Economy  Canada’s economy is considered a mixed economy since it uses more than one economic system.  While most industries are the work of private enterprise, the Canadian government may be considered partly socialist in its control of certain industries such as Canada Post, utilities (for example, water), and some public lands. In Canada, for example, the provincial governments control and regulate the health care system. Similarly, the Ontario government owns and operates the Liquor Control Board of Ontario (LCBO), which controls the sale of certain types of alcohol.  Today, most economies are considered mixed systems since governments usually play some role in managing the economy. Copyright 2015 Pearson Canada Inc. 18 Types of Competition Perfect (or pure) Monopoly Oligopoly Monopolistic Copyright 2015 Pearson Canada Inc. 19 Types of Competition Copyright 2015 Pearson Canada Inc. 20 Think Pair Share: What type of competition do you think ‘cell phones’ compete in? Explain your answer by referring to the chart on “Types of Competition”. Copyright 2015 Pearson Canada Inc. 21 Goals of Canada’s Economic System  Economic growth  Economic stability  Employment Copyright 2015 Pearson Canada Inc. 22 The Business Cycle  Expansion  Peak  Contraction  Recovery Copyright 2015 Pearson Canada Inc. 23 The Business Cycle Copyright 2015 Pearson Canada Inc. 24 Measuring Economic Growth  Gross domestic product (GDP)  Gross national product (GNP)  Real GDP  Nominal GDP Copyright 2015 Pearson Canada Inc. 25 Measuring Economic Growth  Gross domestic product (GDP)  Gross national product (GNP)  The gross domestic product (GDP) is the value of all final goods and services produced within a country’s borders. In Canada, this includes all goods and services produced by both Canadian and foreign companies physically located in Canada. For example, the value of cars produced by the US Ford Motor Company in Oakville, Ontario, would be included in Canada’s GDP.  The gross national product (GNP) is the value of all final goods and services produced by a national economy inside and outside of the country’s borders. In other words, Canadian GNP measures income received in Canada whether earned in Canada or abroad. Copyright 2015 Pearson Canada Inc. 26 Measuring Economic Growth  Real GDP  Nominal GDP  Real GDP is GDP adjusted to reflect the effects of inflation. In other words, real GDP takes out the effect of rising prices.  Nominal GDP, on the other hand, is not adjusted for inflation and is measured in current dollars. Copyright 2015 Pearson Canada Inc. 27 Productivity Productivity measures the level of output versus the level of input in an organization. Copyright 2015 Pearson Canada Inc. 28 The Balance of Trade  Trade surplus  Trade deficit  The balance of trade is the value of all the goods and services a country exports minus the value of all the goods and services a country imports.  A trade surplus occurs when a country exports more goods than it imports. This indicates a positive balance of trade and encourages economic growth. Similarly, a trade deficit exists when a country imports more goods than it exports. A trade deficit is problematic because it results in a negative balance of trade, which means more money is leaving the country than is entering the country. Copyright 2015 Pearson Canada Inc. 29 Exchange rates Copyright 2015 Pearson Canada Inc. 30 Government Debt  National debt  Provincial debt  Municipal debt  Budget deficit Copyright 2015 Pearson Canada Inc. 31 Government Debt  Debt = an existing/outstanding debt owing  Deficit = the negative difference between tax revenue brought in (cash in) and government spending (cash out).  (Since you don’t have enough revenue, you have to borrow money and add to the existing “debt”, which means you grow the debt.) Copyright 2015 Pearson Canada Inc. 32 The National Debt Why is it important? Copyright 2015 Pearson Canada Inc. 33 The National Debt Why is it important? It impacts the amount of tax dollars available to spend.  It affects how much interest expense has to be paid on the outstanding debt?  It affects how much money the government has left to spend on education, healthcare and other services. Copyright 2015 Pearson Canada Inc. 34 The National Debt Another reason:  Debt – is an amount owing, with a legal obligation to pay Copyright 2015 Pearson Canada Inc. 35 The National Debt  Why is debt bad for a country? Lowers country’s credit rating 2. Austerity programs (cuts) 3. Less efficient use of time 4. The doctrine of Ricardian equivalence (may lead consumers and businesses to believe their 1. taxes will be raised in the future to pay off the growing debt. To prepare for this, consumers and businesses end up saving their money instead of spending it, leading to a worsening of the economic problem) Copyright 2015 Pearson Canada Inc. 36 The National Debt  Greece Example:  Video:  https://www.youtube.com/watch? v=i9fPrSMlkn0 Copyright 2015 Pearson Canada Inc. 37 The National Debt Canada: The Federal Debt Clock http://www.debtclock.ca/ U.S. Debt Clock http://www.usdebtclock.org/ Copyright 2015 Pearson Canada Inc. 38 The National Debt Ontario’s debt https://globalnews.ca/news/4251305 /ontario-debt-explained/ Copyright 2015 Pearson Canada Inc. 39 The National Debt  What happens if a country goes bankrupt? Copyright 2015 Pearson Canada Inc. 40 The National Debt  Why happens if a country goes bankrupt?  The government can’t pay for anything anymore…..  The government has no money!!! Copyright 2015 Pearson Canada Inc. 41 The National Debt  The government can’t pay:          Hospitals, doctors, nurses Paramedics Firemen Police officers School teachers Libraries Garbage collection Street plows Road maintence Copyright 2015 Pearson Canada Inc. 42 Economic Stability  Inflation = prices rising  Deflation = prices falling  Interest rates = a fee charged, usually a percentage, by a lender to a borrower for the use of funds Copyright 2015 Pearson Canada Inc. 43 Economic Stability  Where do we see interest rates?  Home mortgage  Car loan  Credit card  Other bank loan Copyright 2015 Pearson Canada Inc. 44 Employment Copyright 2015 Pearson Canada Inc. 45 Types of Unemployment  Frictional  Cyclical  Structural  Seasonal Copyright 2015 Pearson Canada Inc. 46 Frictional unemployment  Normal labour market turnover, not a downturn in the economy.  Examples:  New college graduates  Mothers looking for work  Anyone looking for his or her first job  Employed workers who are laid off also fall under this category.  People are constantly entering and exiting the labour force. Copyright 2015 Pearson Canada Inc. 47 Cyclical unemployment pace of the economy, or the “business cycle.”  Example:  Economy slow/bad=high  Economy growing/good=low Copyright 2015 Pearson Canada Inc. 48 Structural unemployment  occurs for two reasons:  1) either the available jobs do not correspond to the skills of the labour force or  2) unemployed individuals do not live in a region where jobs are available.  prevalent where there has been a technological change and old jobs have been discontinued and new jobs created. Copyright 2015 Pearson Canada Inc. 49 Seasonal Unemployment Seasonal unemployment  is unemployment caused by the seasonal nature of the job. For example, a garden centre may hire workers for the spring and lay them off in the fall. Similarly, a construction company may hire contract workers in the summer and not in the winter. Copyright 2015 Pearson Canada Inc. 50 Economic Stability Where is there job growth now? https://www.youtube.com/watch?v=jSvY7Th wtA4 Copyright 2015 Pearson Canada Inc. 51 Think Pair Share:  What types of unemployment do you think present the most challenges for the economy and why? Copyright 2015 Pearson Canada Inc. 52 Questions and Answers? Copyright 2015 Pearson Canada Inc. 53 Technological Forces How do industries evolve over time? Reading: Karakowsky & Guriel Copyright 2015 Pearson Canada Inc. 1 Learning Objectives 1. Describe the different stages of the industry lifecycle model, including how competitive forces change and the various success factors for firms in each stage of the life cycle. 2. Identify different types of innovations. 3. Understand the relationship between technological evolution and industry evolution and describe the key features of technology life-cycle models. 4. Describe how technology is changing the workplace. Copyright 2015 Pearson Canada Inc. 2 The Industry Lifecycle Model Copyright 2015 Pearson Canada Inc. 3 Introduction phase The introduction phase is characterized by:  high fragmentation  entrepreneurial  high degree of innovation  many small competitors  lots of R&D  customers willing to pay a premium  uncertainty about the market  lack of legitimacy What might be some examples? Copyright 2015 Pearson Canada Inc. 4 Introduction phase The introduction phase is characterized by: Examples: 1. A new technology - that may change the current industry 2. A new invention - creates a new industry or changes the old one 3. A new drug - creates a new industry or changes the old one 4. A change in a government regulation - that affects a new industry being created Copyright 2015 Pearson Canada Inc. 5 Example A new technology - Self-driving cars Video: (5 min) https://www.youtube.com/watch?v=_Zd1ByhigPU Copyright 2015 Pearson Canada Inc. 6 Example: A new technology - Just walk-out technology? Video: https://www.youtube.com/watch?v=NrmMk1Myrxc Copyright 2015 Pearson Canada Inc. 7 Example: A new technology Using solar technology in an aircraft to bring disaster relief by landing ‘anywhere’ for take-off and landing The Canadian Company: Solar Ship (3 min) https://www.youtube.com/watch?v=HGsnSh5pfUU Copyright 2015 Pearson Canada Inc. 8 Growth phase The growth phase is characterized by:  a dominant design (i.e. standard)  shakeout (firms exiting)  products appeal to wider market  economies of scale  lower prices  growing sales  new entrants Copyright 2015 Pearson Canada Inc. 9 Growth Stage:  In some cases, technical standards are specified and must be adhered to by all firms wishing to enter the market. When a standard is legally mandated and enforced by a government or standards organization, it is called a de jure standard. For example, the gauge of a railroad track, a light bulb socket, and an electrical outlet.  A de facto standard, on the other hand, arises by virtue of common usage and is not officially sanctioned by any authority. It is a standard “in fact” or “in practice,” rather than in law. Microsoft Windows is the de facto standard for personal computer operating systems because over 90% of the market uses Windows.  A shakeout often occurs as a standard has been achieved. It is a natural process for an industry as it simply purges and weeds out the weaker competitors. The firms remaining after the shakeout emerge as strong competitors able to scale up production and serve the needs of a growing market. What might be some examples? Copyright 2015 Pearson Canada Inc. 10 Growth Stage: Examples? Copyright 2015 Pearson Canada Inc. 11 Growth Stage: Example: The Cannabis industry in Canada Cannabis companies race to clinch an edge in pot industry’s next phase of growth: (With the global cannabis business expected to be worth $194 billion in seven years) Video (9 min) https://business.financialpost.com/cannabis/cannabis-companies-race-to-clinchan-edge-in-pot-industrys-next-phase-of-growth-intellectual-property Copyright 2015 Pearson Canada Inc. 12 Maturity phase The maturity phase is characterized by:  Slow growth  Markets saturated  Competition intensifies  Profitability  Price-conscious consumers  Incremental improvements (“new and improved”)  Lots of advertising  Price wars What might be some examples? Copyright 2015 Pearson Canada Inc. 13 Maturity phase Examples:  Furniture  Clothing and shoes  Electronics  Hardware  Groceries  Sports  Burger restaurants  Cell phones Copyright 2015 Pearson Canada Inc. 14 Maturity phase So, how do you enter and compete in a mature industry that is already saturated and succeed? Eg. Differentiation strategy??? Offer the customer something truly: different, something unexpected and something to take notice. Copyright 2015 Pearson Canada Inc. 15 Maturity phase Example: Indestructible pantyhose, by Sheertex, a Canadian company. Video: https://www.news.com.au/technology/indestructible-sheertaxpantyhose-that-dont-run-or-tear-unveiled/newsstory/a2a55d74922cb83e6acddf2f94a786f4 Copyright 2015 Pearson Canada Inc. 16 Maturity phase Example: HotBlack Coffee, a coffee shop, in downtown Toronto  Pays its employees above minimum wage and offers NO wifi. Video: https://globalnews.ca/news/4813667/toronto-cafeminimum-wage-freeze/ Copyright 2015 Pearson Canada Inc. 17 Decline phase The decline phase is characterized by:  Declining “industry sales” due to one or more of the following:  Changes in demographics  Shifting consumer tastes  Technological substitution (Remember: A decline in a “company” sales does not mean the entire industry is declining) What might be some examples? Copyright 2015 Pearson Canada Inc. 18 Decline phase The decline phase is characterized by: Examples:  Tobacco industry  Cola (sugary pop) industry  Retail malls Remember: The decline stage doesn’t mean the industry is going to die. It’s not over yet! Copyright 2015 Pearson Canada Inc. 19 Example: Retail malls? Video: https://globalnews.ca/video/3113870/mall-shopping-ondecline-experts-say Copyright 2015 Pearson Canada Inc. 20 Characteristics of the Industry Life-Cycle Model Stages Copyright 2015 Pearson Canada Inc. 21 Alternatives to manage the decline phase 1. Maintain a leadership stance 2. Pursue a niche strategy 3. Harvest profits 4. Exit early 5. Consolidate Copyright 2015 Pearson Canada Inc. 22 Alternatives to manage the decline phase 1. Maintain a leadership stance Be the leader, be the best! Copyright 2015 Pearson Canada Inc. 23 Alternatives to manage the decline phase 2. Pursue a niche strategy Example: Tobacco – From cigarettes to cigars or e-cigarettes Copyright 2015 Pearson Canada Inc. 24 Alternatives to manage the decline phase 3. Harvest profits  Cut costs (reduce staff, cut advertise and just make what you can) Copyright 2015 Pearson Canada Inc. 25 Alternatives to manage the decline phase 4. Exit early Copyright 2015 Pearson Canada Inc. 26 Alternatives to manage the decline phase 5. Consolidate (M&A) Copyright 2015 Pearson Canada Inc. 27 Innovation and Technology: The evolution of technology  Radial innovations  Incremental innovations Copyright 2015 Pearson Canada Inc. 28 Innovation and Technology: A Cyclical Model of Technological Change Copyright 2015 Pearson Canada Inc. 29 Examples: Old Technology New Technology  Typewriter Computer DVD/Blue-Ray Smart Phone Digital imaging Internet  VHS Tape  Landline phone  Film  Encyclopedia Copyright 2015 Pearson Canada Inc. 30 Is this the next wave of technological change in cameras? Example: Pixel 3 - Google Top Shot camera feature (New cell phone camera technology) Video: https://www.youtube.com/watch?v=XjcQqBQVUYo Copyright 2015 Pearson Canada Inc. 31 Technology and the Changing Workplace Copyright 2015 Pearson Canada Inc. 32 Question: How do you think technology has changed work environments over the last 25 years? Copyright 2015 Pearson Canada Inc. 33 Work Technology Trends: Video: (5 min) https://www.youtube.com/watch?v=BAYMc5Rkf9Q Copyright 2015 Pearson Canada Inc. 34 Textbook Case: Has soda lost its fizz? Page 103 Copyright 2015 Pearson Canada Inc. 35 Questions and Answers? Copyright 2015 Pearson Canada Inc. 36 Global Forces How is Canada Faring in the Global Village? Reading: Karakowsky & Guriel Copyright 2015 Pearson Canada Inc. 1 Learning Objectives 1. 2. 3. 4. 5. 6. Identify factors that have encouraged the globalization of business. Describe the central channels or forms of global business activity. Discuss the importance and consequences of multinational and borderless corporations. Explain the purpose of protectionism and its relationship with international trade. Identify the types of regional economic integration. Discuss the implications of NAFTA for Canada and the Canadian business environment Copyright 2015 Pearson Canada Inc. 2 We are living in a global economy…what does this mean? Copyright 2015 Pearson Canada Inc. 3 What is Globalization? A process involving:  the integration of national economies.  the generation of a single world economic system.  the expansion of the degree and forms of crossborder transactions.  the growth in direct foreign investment in regions across the world.  the shift toward increasing economic interdependence. Copyright 2015 Pearson Canada Inc. 4 Sources Encouraging Global Business Activity Copyright 2015 Pearson Canada Inc. 5 Think Pair Share:  Why reasons did Target “go global” when it first came to Canada? Copyright 2015 Pearson Canada Inc. 6 Think Pair Share: Suggested answer:  Pull factor: Potential for Sales Growth  Push factor: The force of competition (e.g. Walmart) Copyright 2015 Pearson Canada Inc. 7 Think Pair Share:  Will Amazon HQ come to Canada?  Video: https://globalnews.ca/tag/i s-amazon-coming-to- canada/ Copyright 2015 Pearson Canada Inc. 8 Channels of Global Business Activity Copyright 2015 Pearson Canada Inc. 9 Channels of Global Business Activity: Exporting and Importing Exporting and Importing - Businesses that engage in international trade are more likely to be involved in importing and exporting than in any other type of global business activity. While there are about 30 million potential customers within our Canadian borders, there are over 6 billion potential customers across the world, increasing by about 95 million people annually. Many Canadian businesses have taken advantage of the benefits of exporting. Canada exports over 40% of our production, making us a major trading nation. Over a 10 year period, between 2001 and 2011, Canada’s exports have been steadily increasing. Copyright 2015 Pearson Canada Inc. 10 Channels of Global Business Activity: Exporting and Importing Conquest Vehicles https://www.youtube.com/watch?v=8YV3f42jnH8 Copyright 2015 Pearson Canada Inc. 11 Channels of Global Business Activity: Outsourcing and Offshoring Outsourcing/Offshoring - As you may recall, outsourcing involves hiring external organizations to conduct work in certain functions of the company. So, for example, payroll, accounting, and legal work can be assigned to outsourced staff. Copyright 2015 Pearson Canada Inc. 12 Channels of Global Business Activity: Licensing and Franchising Licensing and Franchising Arrangements - The licensing agreement is an arrangement whereby the owner of a product or process is paid a fee or royalty from another company in return for granting them permission to produce or distribute the product or process. Question: Is Tim Hortons a good franchise to buy? Why or why not? Video: https://www.youtube.com/watch?v=-69V4eJ34G8 Copyright 2015 Pearson Canada Inc. 13 Channels of Global Business Activity: Direct Investment in Foreign Operations (FDI) Direct Investment in Foreign Operations - Foreign direct investment (FDI) involves the purchase of physical assets or an amount of share ownership in a company from another country to gain a measure of management control. Foreign direct investment in Canada is the second highest in the G7 as a share of GDP. Copyright 2015 Pearson Canada Inc. 14 Channels of Global Business Activity: Joint Ventures and Strategic Alliances Joint Ventures and Strategic Alliances - A joint venture involves an arrangement between two or more companies from different countries to produce a product or service together, or to collaborate in the research, development, or marketing of a product or service. This relationship has also been referred to as a strategic alliance. Copyright 2015 Pearson Canada Inc. 15 Channels of Global Business Activity: Mergers and Acquisitions Mergers and Acquisitions - A Canadian-owned company could actually merge with a foreign-owned company and create a new jointly owned enterprise that operates in at least two countries. This is called a merger. Why do such mergers occur? A number of factors typically generate the drive to merge, including the goal of obtaining new markets for the business and the desire to obtain new knowledge and expertise in an industry. The notion of achieving economics of scale in production may also influence the decision to merge. Copyright 2015 Pearson Canada Inc. 16 Channels of Global Business Activity: Mergers and Acquisitions What are some examples? Copyright 2015 Pearson Canada Inc. 17 Channels of Global Business Activity: Establishing Subsidiaries Establishment of Subsidiaries - Another well-known type of global business activity is the creation of subsidiaries or branch operations in foreign countries through which the enterprises can produce or market goods and services. What are the benefits of such types of global arrangements? Copyright 2015 Pearson Canada Inc. 18 The Multinational Corporation A global business is a business that engages directly in some form of international business activity, including such activities as exporting, importing, or international production. A business that has direct investments (whether in the form of marketing or manufacturing facilities) in at least two different countries is specifically referred to as a multinational corporation (MNC). Copyright 2015 Pearson Canada Inc. 19 The Multinational Corporation Benefits: 1. Encourage economic development. 2. Offer management expertise. 3. Introduce new technologies. 4. Provide financial support, and… Copyright 2015 Pearson Canada Inc. 20 The Multinational Corporation Benefits: 5. Create employment. 6. Encourage international trade. 7. Bring countries closer together. 8. Facilitate global cooperation. Copyright 2015 Pearson Canada Inc. 21 The Multinational Corporation Risks: 1. MNCs have no allegiance to the host country. 2. Profits are returned to the home country. 3. Decision-making can be highly centralized. 4. MNCs can be difficult to control. Copyright 2015 Pearson Canada Inc. 22 Think Pair Share:  Provide examples of U.S. multinationals (MNCs) that currently exist in Canada. Copyright 2015 Pearson Canada Inc. 23 International Trade  The logic of trade  Mercantilism  Trade protectionism  Promoting international trade Copyright 2015 Pearson Canada Inc. 24 International Trade The Logic of Trade - One fundamental argument is that since some countries can produce certain goods or services more efficiently than others, global efficiency and hence wealth can be improved through free trade. Free trade is based on the objective of open markets, where a level playing field is created for businesses in one country to compete fairly against businesses in other countries for the sale of their products or services. The aim reflects the fundamental principles of comparative advantage. Each country expects to take advantage of each other’s strengths, and thereby be permitted to focus on their own strengths. Copyright 2015 Pearson Canada Inc. 25 International Trade Mercantilism - The trade theory underlying economic thinking from the period ranging from about 1500 to 1800 was referred to as mercantilism. Specifically, the fundamental view was that a country’s wealth depended on its holdings of treasure, typically in the form of gold. Mercantilism, essentially, is the economic policy of accumulating this financial wealth through trade surpluses. Trade surpluses come about when a country’s exports exceed its imports. Typically, the governments would also subsidize domestic industries to encourage growth in their exports. Trade between mercantilist countries and their colonies resulted in large profits, given that the colonies typically were paid little for their raw materials but were forced to pay high prices to purchase the final Products. Japan has often been viewed as a mercantilist country because of its typically high trade surplus with a number of industrial nations, including the United States. Copyright 2015 Pearson Canada Inc. 26 International Trade Trade Protectionism - Essentially, trade protectionism is about protecting a country’s domestic economy and businesses through restriction on imports. Why might imports be a threat to a country’s businesses and economy? Low-priced foreign goods that enter the country could compete with goods already produced here and, in effect, take business away from domestic producers. The ultimate consequence may be loss of sales and loss of jobs for domestic industries that are unable to compete with these lower-priced imports. A country that imports more than it exports will have a negative balance of trade, or a trade deficit , which often results in more money flowing out of the country (to buy the imported goods) than flowing in (for our exports). Another common form of trade barrier or restriction is the import quota, which limits the amount of a product that can be imported. The reasons for this restriction are the same: to help ensure that domestic producers retain an adequate share of consumer demand for this product. What’s Wrong with Mercantilism and Protectionism? The practice creates a “one-way street” of trade, so to speak. That is, a mercantilist country aims to maximize the goods and services it sells to other countries, yet it expects to restrict the goods and services that these same countries attempt to sell to it. Promoting International Trade - Whether it is tariffs or quotas or other forms of protectionism, we have seen a gradual lifting of trade restrictions as part of the wave of globalization. Most countries are endeavouring to eliminate trade barriers altogether. There are different forms of regional economic integration. Copyright 2015 Pearson Canada Inc. 27 Regional Economic Integration 1. Free trade area 2. Customs union 3. Common market 4. Economic union Copyright 2015 Pearson Canada Inc. 28 Regional Economic Integration 1. Free trade area Free trade area: This form of economic integration involves the removal of tariffs and nontariff trade barriers (that is, subsidies and quotas) on international trade in goods and services among the member countries. Given that this form involves the lowest degree of regional economic integration, there is greater member autonomy with regard to such issues as how it chooses to deal with nonmembers. Copyright 2015 Pearson Canada Inc. 29 Regional Economic Integration 2. Customs union Customs union: This form of economic integration involves the removal of trade barriers on international trade in goods and services among the member countries. However, given that this form involves a somewhat greater degree of economic integration, there is less member autonomy with regard to such issues as how it chooses to deal with nonmembers and what types of barriers it should construct against nonmember countries. Copyright 2015 Pearson Canada Inc. 30 Regional Economic Integration 3.Common market Common market: This form of economic integration builds on the elements of the two previous forms, including the removal of trade barriers and the implementation of a common trade policy regarding nonmembers. Given the requirement of cooperation in economic and labour policy, this level of economic integration is more difficult to achieve than the previous two levels. Copyright 2015 Pearson Canada Inc. 31 Regional Economic Integration 4. Economic Union Economic union: This form of economic integration builds on the previous three forms and, in addition, involves a coordination of economic policies among the member countries. It requires a higher level of integration than a common market because it involves the harmonization of fiscal, monetary, and tax policies. Copyright 2015 Pearson Canada Inc. 32 Other trading  European union  Asian Trading bloc  Asean  Apec  NAFTA Copyright 2015 Pearson Canada Inc. 33 North American Free Trade Agreement (NAFTA) Copyright 2015 Pearson Canada Inc. 34 North American Free Trade Agreement (NAFTA): Advantages: 1. increases in trade and exports. 2. increases in GDP. 3. creates synergies between 3 countries that “go beyond economic prosperity.” 4. foreign competition forces domestic companies to improve products, processes and customer service to be more competitive. 5. forces countries to reduce/abolish inefficient operations and to direct efforts where they can obtain a competitive advantage. Copyright 2015 Pearson Canada Inc. 35 North American Free Trade Agreement (NAFTA): Advantages: 6. Canadian culture is supported (eg. music royalties). 7. more choice of goods/services. 8. less expensive goods/services.. 9. less (or no) taxes/tariffs on imported goods. 10. allows a free and open market. Copyright 2015 Pearson Canada Inc. 36 North American Free Trade Agreement (NAFTA): Disadvantages 1. increases in foreign imports, competing with Canadian goods. 2. increases in trade only due to Canadian low dollar, not NAFTA. 3. Canada still trades mainly raw materials/natural resources, not technology-based exports. 4. too dependent on trade with U.S.; still need to improve trade with other nations globally. 5. Canadian companies cannot compete against U.S. and other larger international companies. Copyright 2015 Pearson Canada Inc. 37 North American Free Trade Agreement (NAFTA): Disadvantages 6. Jobs are being lost to Mexico where there are cheaper wages. 7. Canadians lose jobs when U.S. companies decide to shut down in Canada and now just ship goods directly from the U.S. across the border tariff-free. 8. American companies will focus on “American” culture, and will indirectly discourage Canadian culture by having a dominant presence. 9. Canada will become an “economic subsidiary” of the U.S. 10. NAFTA has not caused an increase in productivity. Copyright 2015 Pearson Canada Inc. 38 U.S. Mexico Canada Agreement (USMCA) How is the USMCA different from NAFTA? [Advantages and disadvantages?] Video: https://www.cnbc.com/video/2018/10/01/key-differences-between-the-new-usmcatrade-deal-and-nafta-us-mexico-canada-trade-war-tariffs-nafta-trump-auto-dairy.html Copyright 2015 Pearson Canada Inc. 39 Case: Maple Syrup 1. Why does Canada need to export maple syrup? Who benefits from this industry? 2. How could U.S. protectionist policy hurt the industry? Article: The future looks sweet for Canadian syrup exports. https://www.edc.ca/en/blog/canadian-maplesyrup-exports.html Video: https://globalnews.ca/news/3434302/maplesyrup-canada/ Copyright 2015 Pearson Canada Inc. 40 Questions and Answers? Copyright 2015 Pearson Canada Inc. 41
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Mars and the Global Chocolate Industry, Case Questions
QUESTION 2: Assessing Mars' Cocoa Sourcing Ethic
The framework of ethics called the End-Point Ethics gives weight to consequences in the
process of decision-making. In this approach, the morality of an action is often judged according
to its ultimate outcomes instead of the initial intention or conformity with the rules.
If Mars plans to stick to its strategy of sourcing cocoa from known places with child labor,
the consequences of this decision should be scrutinized as per the Rules of End-Point Ethics. Even
though it can guarantee a clean supply and the profit of cocoa in the short run, there are
consequences in the long term.
Mars states that its action positively affects the Company and the cocoa growers. Mars
could maintain its chocolate production and stay successful in the industry by maintaining the
cocoa supply chain over time. In addition, cocoa farming provides income for farmers residing in
poor areas, thus including them in the livelihoods and the economies of such regions.
On the other hand, the benefits of Mars and cocoa farmers must be traded against the
negative effects, particularly for children who participate in cocoa production. The determination
to enhance the living standards, even though child labor is still rampant in cocoa-growing areas,
puts children in unsafe working environments and curtails their basic right to education and a
childhood.
Likewise, children who are forced to work often suffer from physical, mental, and
emotional problems, portraying a circle of poverty and unprecedented exploitation. The realization
of the present financial gains notwithstanding, the long-term effects of the children's welfare
cannot be ignored. Also, Mars could face reputational problems and consumer reprisals if it
subsequently is linked to unethical actions like child labor.

While Mars may be of the view that the action of allowing child labor is at times necessary
and that the farmers are garnering an income as benefits, this perspective is short-sighted since it
disregards the painful fact that child labor is exploitative and also the broader implications for
human rights and corporate responsibility. On the other hand, a company's reputation and market
share might be destroyed if the customers think that the Company has acted unethically. As a
result, people will stop buying the Company's products and lose trust.
It can be concluded that by applying the End-Point Ethics standard to Mars' cocoa sourcing
ethics, one faces a challenging moral dilemma. Even though it will lead to short-t...


Anonymous
Just the thing I needed, saved me a lot of time.

Studypool
4.7
Indeed
4.5
Sitejabber
4.4

Related Tags