What is International Business?

1. What is International Business?

2. What is a business?

3. Domestic Business • Businessis defined as the manufacturing and/or sale of goods and/or services to satisfy the needs and wants of consumers to make a profit • Domestic Businessis a business that makes most of it’s transactions within the borders of the country which it is based • - A domestic business in Canada is owned by Canadians, relies primarily on products and services made in Canada and sells goods and/or services to people

4. Describe a domestic business you know using the definition of business Can you also think of another term used for business?

5. Challenges • Canadian companies that might appear to be purely domestic businesses, could on careful examination, have non-domestic transactions • Why? Because Canada relies heavily on imports for much of its machinery and products Ex: What if a logging company cuts down trees in a Northern Ontario forest and sells the trees to to a pulp and paper mill in Thunder Bay Is this a domestic business?

6. Challenges Cont’d • What if the company buys it’s logging equipment from China? Or is owned by an American firm? • If any of these are true then it is an international business

7. International Business • International Business is the economic system of transactions conducted between businesses located in different countries • A domestic market means all your customers live in the country where your business operates • A foreign market refers to customers outside the country where you operate

8. Five Ways a Company could be considered IB • Own a retail or distribution outlet in another country – ex. Tim Hortons • Own a manufacturing plant in another country – ex. Bombardier • Export to businesses in another country – ex. Lee Valley Tools • Import from businesses in another country – ex. Sporting good stores in Canada who sell foreign made products (Nike, Puma, Reebok, etc) • Invest in businesses in another country

9. Best Lemonade Contest!!! • Task: • Step 1: In groups of 4 you will come up with the ingredients to make the best lemonade ever! The judges will be your peers in this class • Be creative, keep your target market in mind (what their taste preferences are, allergies etc), and don’t forget this is a friendly competition!!!! • Step 2: Determine Potential Profit: • Make a list of all ingredientsused, quantity, and price of each ingredient/resources used to make lemonade • Use the following formula to calculate potential profit: Selling Price – cost = profit • Step 3: Identify where ingredients are from • Submit documents to Mrs. Forbes the day you present your lemonade to the class.

10. Lemonade Chart

12. Fun Bit • Did you know that the Arab world first cultivated Lemons? • They used them in cooking, as an antiseptic, and decoration in gardens • Lemons became a trading commodity throughout the Middle East and the Mediterranean between CE 1000 and CE 1150 • Farmers in Genoa, Italy were responsible for the first real lemon cultivation • Christopher Columbus introduce lemon seeds to South and Central America in 1493 – from there seeds were brought to California and Florida • Most of the lemons available in Canada today come from those two states