International Business and Global Marketing Fundamentals

Posted on Feb 11, 2026 in Business Administration and Management (BAM)

Business Expansion Proposal Template

1. I believe the best country for the company to expand into right now is _____ because it lines up well with the company’s goals and values.

2. Politically, this country is _____, which gives the business more stability and less risk during expansion.

3. A stable political climate also makes it easier for the company to plan long-term without worrying about sudden changes.

4. Economically, the country has _____, and this is important because it affects how much consumers can afford and how successful sales might be.

5. The social environment is also a good fit, since people in this country _____, which connects directly to the company’s brand or product type.

6. These social attitudes make it more likely that customers will support and trust the company.

7. Labour and human rights conditions are another major factor because _____, and the company wants to avoid any ethical issues.

8. Choosing a country with stronger protections also helps the company maintain a positive reputation internationally.

9. In terms of trade, the fact that the country has _____ makes expansion smoother and reduces barriers or delays.

10. There is a challenge, such as _____, but it isn’t serious enough to outweigh the benefits.

11. The other country, _____, is less suitable right now because _____, and that could create problems for the business.

12. These issues could hurt the company’s image or make expansion more unpredictable.

13. Overall, _____ stands out as the stronger option for immediate expansion based on stability, ethics, and long-term success.

Chapter 1: Foundations of International Business

Domestic Business: Making, buying, and selling goods and services within a single country.
International Business: Creating, shipping, and selling goods and services across national borders.
Global Business: Involves companies with operations in multiple countries and the exchange of goods and services across national borders.
Global Dependency: Items that consumers need and want are created in other countries.
Why Companies Go International: To access new markets and a broader customer base, diversify risks by not relying on a single market, and gain a competitive edge by finding new opportunities for growth and innovation.
Imports: Buying products from other countries.
Exports: Selling products from one country to another.
Trade Surplus: The amount by which a country’s exports exceed the cost of its imports.
Trade Deficit: When a country’s total import of goods and services exceeds its total exports.
Trade Barriers: Restrictions that reduce free trade among countries.
Tariffs / Duties: Import taxes that increase the cost of foreign products.
Quotas: Restrictions on the number of imports allowed.
Geographic Factors: Climate, terrain, seaports, and natural resources of a company will influence its business activities.
Cultural and Social Factors: Culture is the accepted behaviors, customs, and values of society. Examples include greetings (hugging, handshakes), education, religion, values, customs, and relationships.
Economic Conditions: The type of economic system, availability of resources, workers, and wealth all affect international business.
Political and Legal Factors: Many governments regulate business to protect consumers. Canada and other countries have restrictions on consumer and business activity.
Advantages for Canada: Meeting needs, job creation, attracting investment, new technology and materials, and diverse products and services.
Disadvantages for Canada: Support of non-democratic governments, social welfare issues, political issues, and environmental issues.
Foreign Direct Investment (FDI): Investing money into a company to gain profit from future earnings.
Portfolio Investment: The purchase of stocks, bonds, and other financial instruments issued by Canadian firms. Foreign capital helps businesses expand and can sometimes save failing ones.

SWOT Analysis of Canada

Strengths: Rich in natural resources (oil, gas, minerals, freshwater); safe, stable, and peaceful country with freedom; surrounded by three oceans, offering trade and resource advantages.
Weaknesses: Harsh climate limits farming and development; economy depends too much on natural resource exports; small population limits market size; crowded cities face high costs.
Opportunities: Expand global trade and attract skilled immigrants; grow in clean energy, AI, and food exports; use resources to draw investors and improve sustainability.
Threats: Climate change harming ecosystems and infrastructure; heavy reliance on the US economy; global competition in energy and technology industries.

Chapter 2: Globalization and Economic Indicators

Globalization: The tendency of businesses to move beyond domestic markets and into other markets around the world.
Self-Sufficiency / Protectionism: The ability to provide for all basic needs, such as food, clothing, shelter, and water, without relying on others.
Multinational Corporation (MNC): A business with facilities and assets in at least one country other than its home country.
World Trade Organization (WTO): Operates a system of international trade rules and resolves disputes.
Trade Agreements: Treaties between two or more countries to reduce or remove trade barriers like tariffs and quotas.
Socio-Political Impacts: Foreign companies create jobs, raise standards of living, and create new consumers.
Downside of Globalization: The entire world economy may be affected by events in one location (e.g., COVID-19).
Exchange Rate: The rate of exchange for one currency to another.
Currency Fluctuations: Caused by changes in supply and demand; creates uncertainty in pricing goods and services.
Currency Revaluation: When demand is greater than supply and the value increases.
Currency Devaluation: When supply is greater than demand and the value decreases.
Hard Currency: Easily converted to other currencies on the world market. People trust them and seek refuge in them during economic downturns.
Soft Currency: Not as easy to convert to other currencies.
Overvalued Currency: A currency whose value in the foreign exchange market is considered higher than its true value based on economic fundamentals.
Undervalued Currency: A currency whose value in the foreign exchange market is considered lower than its true value based on economic fundamentals.
Fixed Exchange Rate: Tying the value of a country’s currency to another currency or the price of gold.
Floating Exchange Rate: No fixed rate; supply and demand dictate the price.
Currency Speculation: Buying, holding, or selling foreign currency in anticipation of its value changing.
GDP (Gross Domestic Product): Total value of goods and services produced in a country during a specific time (usually one year).
Inflation: General increase in prices over time in an economy.
Hyperinflation: Extremely fast or out-of-control inflation.
CPI (Consumer Price Index): An index that measures the price of a fixed market basket of approximately 300 consumer goods.
Immigrants: People who choose to leave their home country for work, school, or to start a new life.
Refugees: People who are forced to leave because of war, poverty, or persecution.
Migrant Workers: Persons who migrate within their home country or outside it to pursue work.
Remittances: When migrants send home part of their earnings in the form of cash or goods to support their families.
Impact of Immigration: Promotes trade through cultural knowledge and the creation of new businesses.
Time Zones: Areas having particular characteristics or uses subject to specific restrictions.
Daylight Saving Time: Time adjusted to achieve longer daylight in summer by setting clocks one hour ahead of standard time.
Business Communication and Time: Information typically exchanged between 9:00 AM and 5:00 PM.

Chapter 3: Culture and the Global Labour Market

Culture: Encompasses the knowledge, experience, beliefs, values, attitudes, religion, and symbols acquired by a group of people over generations.
Cultural Awareness: Understanding and appreciation of differences and similarities between cultures.
Cultural Norms: Shared, unspoken rules of behavior and thought that guide members of a specific group.
Subculture: Bringing parts of an original culture (food, language, etc.) into a new culture.
Cultural Differences: Variations in beliefs, behaviors, and language unique to specific groups.
Counterculture: A culture with values or lifestyles in opposition to the currently accepted culture.
Assimilation: The process of taking in and fully understanding information or ideas.
Mainstream Culture: Often has difficulty accepting counterculture movements and may act with prejudice towards their members.
Values: Fundamental beliefs and principles that guide actions.
Beliefs: Acceptance of something as true or real, often without proof.
Attitudes: A person’s way of thinking or feeling about someone or something based on experience.
Prejudice: Preconceived opinion not based on reason or actual experience.
Tolerance: Acceptance and respect of differing beliefs and practices.
Intolerance: Unwillingness to accept cultural differences.
Business Etiquette: Rules and professional behaviors that promote respect in the workplace.
Business Practices: Procedures, policies, and ethical guidelines followed in daily operations.
Meeting Culture: Shared norms and rules that dictate how meetings are conducted.
Spatial Perception / Personal Space: The physical and psychological area around a person they consider their own.
Non-Verbal Communication: Sending and receiving messages without words (facial expressions, gestures).
Gestures: Movements of the body, especially hands or head, to express an idea.
Professional Conduct: Expected behaviors and principles for members of a specific profession.
Workplace Hierarchy: System of ranking employees and departments within an organization.
Face: Social standing, reputation, or dignity.
Losing Face: Public humiliation, embarrassment, or loss of respect.
Monochronic Culture: Views time as linear, tangible, and finite, prioritizing schedules and punctuality.
Polychronic Culture: Views time as fluid and flexible, allowing for multiple tasks simultaneously.
Target Market: A specific group of people with shared characteristics that a business aims to sell to.
Cultural Research: Discovering how culture shapes society and power dynamics.
Labour Market & Economics: Studying patterns of wages, employment, and income.
Labour Regulations: Laws and rules governing the relationship between employers and employees.
Minimum Wage: Lowest remuneration an employer can legally pay an employee per hour.
Workplace Safety: The process of protecting employees from work-related injuries.
Gender Equality: The process of ensuring fairness to all genders.
Discrimination: Unfair treatment based on characteristics such as race or gender.
Standards and Practices: Minimum benchmarks for performance, conduct, and quality.
Labour Unions: Organizations of workers formed to improve working conditions.
Rationalization: The process of explaining actions with logical reasons.
Downsizing: The permanent reduction of a company’s workforce.
Cutbacks: Instances of reducing resources or spending.
Layoffs: Termination of employment due to business needs rather than performance.
Offshoring: Relocating business processes to another country to reduce costs or access talent.
Wages: Payments from an employer to an employee, typically paid hourly or daily.
Standard of Living: The degree of wealth and material comfort available to a person or community.
Child Labour: Work that deprives children of their childhood and harms their development.
Forced Labour: Work exacted from a person under threat and without voluntary offer.
Migration Concepts: Migration, Emigration, Immigration, Push Factors, and Pull Factors.
Country-Specific Concepts: Gift-giving etiquette and business card etiquette.

Chapter 4: Sustainability and Economic Systems

Sustainability: Meeting the needs of the present without compromising future generations.
Renewable Energy: Energy from natural resources like sunlight, wind, and water.
Regenerative Agriculture: Farming practices that restore soil health and biodiversity.
Circular Economy: An economic system designed to minimize waste and maximize reuse.
Climate Change: Long-term changes in temperature and atmospheric conditions caused by human activities.
Positive Vision: Envisioning a positive future rather than focusing solely on problems.
Innovative Solutions: Technologies with the potential to address environmental challenges.
Community Engagement: The role of collective action and grassroots initiatives in driving change.
Interconnectedness: The linked nature of environmental, social, and economic issues.
Paris Agreement: A legally binding international treaty to limit global warming below 2°C.
Gross National Happiness (GNH): A holistic measure of a country’s well-being beyond economic growth.
Psychological Well-being: A key component of GNH reflecting mental and emotional health.
Traditional / Subsistence Economy: Relies on agriculture and basic manufacturing with low productivity.
Transitional Economy: A gradual shift toward industrialization and urbanization.
Industrialized / Developed Economy: Highly productive and technologically advanced with a focus on services and innovation.
Absolute Advantage: The ability to produce a product more efficiently than other countries.
Opportunity Cost: The value of what is foregone to get something else.
Comparative Advantage: The ability to produce a good at a lower opportunity cost than another country.
Lobby Groups: Advocating for interests to influence decision-makers.
Regulatory Environment: Framework of rules and laws set by governments.
Macroeconomics: The study of an economy as a whole (GDP, unemployment, inflation).
Human Capital: The economic value of a worker’s knowledge and skills.
Infrastructure: Physical systems (roads, power) that support an organization or nation.
Resource Dependency: Reliance on external resources controlled by other organizations.

Chapter 5: Global Strategies and Trade Agreements

International Trade: The movement of goods, services, technology, and ideas throughout the world.
Outsourcing: Hiring external parties to handle specific tasks.
Economies of Scale: Cost savings gained by an increased level of production.
Global Strategy: Treats the world as one market with standardized products.
Multidomestic Strategy: Customizes products and marketing for local cultures.
Transnational Strategy: Balances local market needs with global efficiencies.
Free Trade: Policy allowing goods to flow without tariffs or government barriers.
CUSMA: Canada-United States-Mexico Agreement; replaced NAFTA.
European Union (EU): Trade agreement between 27 European countries using the Euro.
Brexit: The withdrawal process of the UK from the EU.
G7 / G20: Groups of nations discussing macroeconomics, growth, and trade.
OECD: Organization for Economic Cooperation and Development; develops policies for sustainable growth.
World Bank / IMF: International organizations providing loans and working toward global prosperity.

Unit 7: International Marketing and Consumer Behavior

Marketing: Creating, communicating, and delivering offerings that have value.
Market Research: Collecting data (Primary and Secondary) to solve marketing problems.
Demographics: Statistical data relating to population (age, income).
Psychographics: Classification of people according to attitudes and aspirations.
The Marketing Mix (4 Ps): Product (development/adaptation), Price (markup/tariffs), Place (distribution/e-commerce), and Promotion (advertising/branding).
Ethnocentrism: The belief that one’s own culture is superior; can lead to marketing failure.
Discretionary Income: Income left after paying for basic necessities.
Competitive Advantage: Features that allow a company to outperform competitors.
Product Differentiation: Making a product stand out through unique features or quality.
Product Life Cycle: Introduction, Growth, Maturity, and Decline.
Fads vs. Niches: Short-lived trends versus specialized market segments.
Viral Video Marketing: Marketing that spreads rapidly through social media engagement.
Product Placement: Including brands in media content for promotional purposes.