Chapter 4.2
Definition & Terms
• Auto Pact aka Canada-US Auto Products
Agreement
– Agreement was signed in 1965
– It secured jobs for Canadians (Auto workers &
parts manufactures)
Definition & Terms
• Telecommunication
– Is communication over distance, examples
are the telephone, Internet, radio, or television
• DFAIT
– Provides trade data, country profiles, and
market studies by sector
– Also has links to the WTO, FTAA, NAFTA
Definition & Terms
• Patent
– Is a grant of property right by law to give
exclusive rights to the inventor and to protect
the rights of the inventor and prevent others
from making, using, or selling the invention
Definition & Terms
• Copyright
– Is a form of legal protection provided to the
author(s) of their original work(s),
– this includes literary, dramatic, musical, and
other intellectual works such as software
programs
Definition & Terms
• Joint Ventures
– Is an agreement between 2 or more
organizations to share assets and control of a
new business for mutual gain
– Share: technology or manufacturing facilities
Short Answer
• Why did the WTO rule against provisions
of the 1965 Canada-United States Auto
Pact?
Short Answer
• The Auto Pact gave an unfair trade
advantage to US automobile manufactures
(GM, Ford & Chrysler)
– GM imported SAAB, Isuzu
– Ford imported Volvo & Jaguar
– Chrysler imported Mercedes Benz
Short Answer
• What are four things an inventor can do
with his or her idea after the patent has
been registered?
Short Answer
• What are four things an inventor can do
with his or her idea after the patent has
been registered?
– Sell patents or copywrights
– License other companies to use it
– Produce & Sell product for a fee
– Create a joint venture with another company
– Enter invention into a public domain, any
company or person can use.
Short Answer
• Describe the changes that have taken
place in the Canadian banking industry
since the 1980’s
Short Answer
• Recent laws have been eliminated to allow
foreign banks operate in Canada (“Save
your money”, “Egg management Fee”)
Short Answer
• Banks are now categorized
– Schedule I (Domestic, TD-Canada Trust)
– Schedule II International banks (Bank of
America)
– Schedule III Small Foreign Bank Branches
4.3/4.4 Answers 1A
• Companies that have access to
information can make decisions that will
make or save money
• Before expanding a company needs know
the wage rates, cost of living, market
composition, consumer demand, sources
of supply, shipping costs, tariff rates as
well as political and economic data
4.3/4.4 Answers 1A
• In order to make good decisions
companies need good information
4.3/4.4 Answers 2A
Impact of Globalization
• New Markets
– its easier to transport goods overseas
• Import Opportunities
– Its easier to obtain non-traditional goods from
around the globe
4.3/4.4 Answers 2A
Impact of Globalization
• Labour a Variable Cost
– Switched from a primary industry based to
manufacturing & knowledge base economy
– The price of labour is different across the
country/world because of the different
standard of living
4.3/4.4 Answers 2A
Impact of Globalization
• The Value of Information
– Information Technology is the “machinery” of
the current era (Information Age)
– All professions use IT to aid in making
important business decisions as well as an
important research tool.
4.3/4.4 Answers 2A
Impact of Globalization
• Changes in Immigration
– Canada attracts many professionals from all
over the world, increasing competition for jobs
(“Do we hire a Canadian or an immigrant?”)
– Many Canadians leave Canada for higher
paying wages known as the “brain drain”
4.3/4.4 Answers 3A
• The Home Office
• The Travelling Office (eg. Smartphone &
Laptop in a train station)
• The Hotel Office
• Office in another country
4.3/4.4 Answers 4A
Not all companies go domestic why?
• Product Quality (can’t meet international
demand due to capacity issues)
• Complexity Risk & Cost (Cuba)
• Quality of Life (extra profit is not worth
the effort)