Canada is one of the world’s wealthiest nations and is a member of Organization for Economic Co-operation and development (OECD) and a member of the G7.

International Business from a Global Perspective
QUESTION ONE: International Business Analysis
Canada is one of the world’s wealthiest nations and is a member of Organization for Economic Co-operation and development (OECD) and a member of the G7. Canada’s economy is dominated by the service industry which employs approximately three quarters of Canadians. The diversification of Canada’s economy enables it to have a upper hand in international trade. The Canada’s top exports are: crude oil and petroleum products, vehicles/components, gold, liquid and coal. The following are the key sectors of the Canadian economy.
Industrial goods and materials
This sector accounted largest in terms of export in 2011. It experienced a 21.9% growth in comparison to 2010. As well industrial goods and materials comprised of 23.9% of the total goods Canada exported. Metals and metal alloys along with metal ore led the advancement with 39.8% and 26.0% increment respectively. This gain was from higher prices for metal ore and gain in price and volume for metals and alloy. Some of these metal and metal ore include nickel, zinc, and copper. Asbestos and other non-metallic minnerals experienced a decline hindering export gain in this category.
Machinery and equipment
Export fell for the year 2011 by 5.5% ($4.5 billion) the third time consecutively. This was approximately 20% off the export peak for 2007. Approximately, 40% of the losses were directed to aircraft and other transportation equipment. However, under this category the automotive products demonstrated an upward trend after five year decline of about 29.6% ($13.0 billion). Much of this gain came from passenger vehicles that had a 55% ($11.3 billion) increment. However the truck export declined by 38.6% ($1.5 billion).
Agriculture and fishing
The exports experienced decline for the second time consecutively in 2010 of 0.9% ($329 million). The main contributors was wheat: meat (down $150 million), (down $1.4 billion) and barley (down $128million). On the other hand cereal preparations category went up by $1.1 billion. Also forestry product, under this category experienced growth of 12.0% ($2.3) in 2010. Forestry product exports returned to $21.8 billion in 2010. Exports, a gain of $1.3billion and $1.8 for pulp and lumber was recorded respectively. Newsprint and other paper exports recorde a decline of $0.7 billion. Also on a downward trend in 2010, exports of other consumer products declined by 8.4% ($1.5 billion) or to $16.4 billion.
Imports of the major sectors were also up in 2010. In aggregate, a 4.5% decline in import prices combined with a 15.5-percent increase in the volume of imports to raise the value of exports by $39.0 billion, or 10.4 percent, to $413.1 billion. In aggregate, a 4.5-percent decline in import prices

industrial goods and materials imports
Thin category shot by $11.8 billion (15.7%), to $86.9 billion. Some 70% of the increase was accounted for by metals and metal ores, which advanced $8.3 billion, led by precious metals. The remainder of the gains were fairly evenly split between chemicals, plastics, and rubber (led by plastics) and other industrial goods (where metal fabricated basic products were responsible for about half the gains).
Imports of machinery and equipment
Under this category, Canada’s experienced the largest increase of 5.3%, ($5.8 billion) to $113.7 billion. All import categories increased, except for aircraft and other transportation equipment. Miscellaneous machinery and equipment, particularly communications equipment, was leading by $3.7 billion while imports of aircraft and other transportation equipment reduced $1.2 billion.
Forestry products imports
This sector experienced imports increase in 2010. Imports of forestry products were up 10.9% ($259 million) to $2.6 billion. Wood fabricated materials led to the increase of $289 million, while imports of crude wood products declined by $31 million 2010.
Agricultural and fishing products import.
This sector was the only major category that avoided a decline in imports during the 2009 recession. Imports have demonstrated an upward trend between 2004 and 2010 when they were up by $226 million, or 0.8 percent, to add up to $29.6 billion. For the most part, gains were widespread, with notable declines in dried fruits, fruits, and fruit preparations (down $127million), other cereals and cereal preparations (down $125million), and corn (down $101million).

QUESTION TWO:

Globalization is a process of changing to integration, where people, companies and government of different nations can freely interact. Globalization is driven by international trade, investment and aided by information technology. While many features of globalization have been beneficial, others have been perilous for certain economies and countries. The following are among the effects people experience in there today activities.
Pros of globalization I experience in my daily life
Globalization has made it possible for people to enjoy a greater choice of goods and services, since foreign companies can easily avail their products for sale. For example the each time one has to buy a cellphone you have to make a choice among between Nokia (Finnish multinational, Samsung (Korean multinational), Apple phone (American multinationals) and others. The presence of varied substitute product is as a result of globalization
Globalization made people to benefit from lower overall prices for goods. The many competitors of various goods are reducing their prices to attract customers. Currently in the United States, most customers can purchase products ranging from cars to televisions at lower prices now than any other point in history. This is because these products are no longer produced in the United States, but in other countries with lower labor costs like in the Asian countries.
Globalization has made cultural exchange possible, in terms of tourism, foreign studying among other ways.
Cons of globalization
Globalization has led to emergency of supreme corporations for example: Vitol, Nestle, Royal Dutch Shell among others. These firms are motivated only by profits and there influence on the GPD outweighs that of many nations. Their influence in the global market can make local businesses to completely shut down. Any local company shuts down on the event of this multination establishing nearby. Smaller companies get driven out of business by these massive corporations due to the fact they cannot match their buying power. Local suppliers find their margins squeezed as the large corporations seek to maximize their own and their shareholders profits.
The Outsourcing has created a culture of job insecurity. Prior to globalization, people had stable, permanent jobs. Now people live in constant dread of losing their jobs to foreign competition and outsourcing. This increased job competition has led to a reduction in wages and consequently lower standards of living.

QUESTION THREE

In economics, internationalization is the process of increasing involvement of enterprises in international markets. In the resent past internationalization is taking center stage as a way of dealing with the market uncertainties. The following is a discussion of some of the factors that make companies to go international.
To begin with, the current world policies have created minimum barriers for firms to internationalize their activities. The firms i.e. multinationals might be expected to create local employment, generate exports, transfer technology, stimulate growth and development of local industries etc. Currently, the world economy has structured itself such that nations have become interdependent with each other leading countries like Singapore, Taiwan and South Korea to heavily invest in foreign countries to an extend that their economy now depend on foreign investments (Cateora & Ghauri, 2000). Principally, policies have ween investment in foreign countries have a significant change. Because of this, it now profitable to choose international expansion than it was in the previous years. Contries in Eastern Europe and Asia are luring foreign investors because development of these countries is still in its infancy.
Also companies internationalize in seek of the market, especially when a product require large investment by the buy. One practical example is the German Transrapid, marglev developed consortium firms lead by Siemen. Originally, the maglev was developed to connect the German cities Hamburg and Berlin, unfortunately new government policy and environmentalist thwarted this project making it turn into a financial crisis. However, Siemen managed to reach an agreement with china and maglev and idea was bought to connect Shangai with its airport. This is shows that that successful marketing at a new international market can lead to positive synergetic effects on other markets.
For other companies the main motive for internationalization is the factor of cost effective production or international outsourcing. Internationalization enable firms to manufacture or buy products from outside the country for less costs than their domestic market. For example Asian produced goods tend to be cheap compared to American of Europe produced goods because of the low wage cost in Asia. Producing or buying good at low cost automatically give a company comparative advantage because they are able to sell their products at competitively low prices. A classic example is Nike that buys it good from contractors from developing countries and resell them in richer countries for quite high price, thus making huge profits. Nike has approximately 700 factories worldwide hat employ 550,000workers in 70 countries (Jacinto, Leela 2000 at Abcnews.com)
Lastly, firms internationalize because they want to expand and enjoy economies of scale. Marketing products in other countries is likely to attract new customers who might be exceeding multiple than the domestic customer

QUESTION FOUR: Digital Technologies and Media Economy
The dawn of new technology has led to increasingly change in consumers’ media preference. Tradition media are losing popularity and they are being overtaken by newer media. More precisely, the internet is gaining popularity and others argue that it might displace the tradition media, especially television.
Study demonstrates that the internet is displacing other media in usage. A research by Gomez Advisors and InterSurvey in 1999 of 4,600 Americans states that 46% of the correspondent watched television and 25% reduced their newspaper reading because of internet use. More and more studies are arriving at this conclusion. A survey by Stanford University in 2000 states that 60% of regular internet users decreased their time watching television while about 33% did so to reading the newspaper.(O’Toole,200). Facts show that gradually the internet is displacing the old tradition media. Philip Mayer while studying the newspaper displacement trends for the last two decades predicts that there is a possibility that the last newspaper will appear in 2040. (Philip, 2004).
On the other hand communication history points out that prediction of old tradition media becoming inexistent is pure fiction. For example, when telegraph came to existence publisher Gordon Bennet declared that telegraphs were to make newspaper extinct due to overwhelming usages when they were introduced (Standage, 1998). Also in 1982, journalist Steve Piacente was quoted telling his colleagues that the newspaper is doomed (Patten, 1986). All this prophesies have turned out to be wide of the mark. The radio and television seem to adapt very well and remain to be part of everyday life.
To round it up, let it be stated that new forms of media in the market are expected to take a large part of the consumers time and money but just like the way the television did not eliminate the newspapers in the 1950s the internet will coexist with other media. It should be expected that these Medias will battle for the same client but none will displace the other complete.
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Additional Sources (mentioned companies and products)
www.transrapid.de
www.thomson-multimedia.com
www.therollingstone.co.uk
Harald Ebner IBL-Exchange 000322412