BBB4M1
Chapter 3
Canada’s Global Challenge
Read section 3.4 and answer the following questions
1. How much of our GDP depends on international trade?
2. How many of our jobs depend on international trade?
3. List some of the economic factors that determine a country’s standard of
living?
4. Do you think the standard of living in Canada in twenty years will be better
or worse than our current standard of living? Explain.
5. Define “knowledge economy”.
6. What percent of workers are employed in “high-knowledge industries”?
7. Will this percentage increase or decrease in the future? Explain.
8. Define Intellectual Capital.
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9. Find an accountant in our class and ask them if “intellectual capital” shows
up on the balance sheet as an asset? Explain.
10.Why would the stock price of a drug company skyrocket if they developed a
cure for cancer?
11.Describe an example of a company who missed an opportunity to benefit
from new knowledge?
12.Describe an example of a company who has thrived in the knowledge
economy?
13.How do companies develop knowledge?
14.What is innovation?
15.List two ways to ensure international competitiveness.
16.What does our tax money pay for?
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17.How does Canada’s high corporate tax rate affect foreign investment?
18.Explain how lower corporate and personal tax rates may increase the total
amount of tax our government receives?
19.Define rationalization.
20.List some of the changes that may occur in an organization due to
rationalization.
21.Define economies of scale.
22.Describe how rationalization has affected the auto industry in the past few
years.
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23.Why have the total number of jobs declined in some industries (such as the
auto industry), even though demand has increased?
24.How do changes in government regulations (such as stricter environmental
laws) affect the future of jobs in certain industries?
25.What is a developed nation?
26.What is a developing nation?
27.What is a less-developed nation?
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