4.

2- study questions

1. Identify the three (3) costs of international trade discussed in the text.
The three costs of international trade are Offshore Outsourcing, Human Rights and
Labour Abuses and Environmental Degradation.

2. a) What is offshore outsourcing?

Offshore Outsourcing is the practice of hiring service providers from other countries
where the labour is cheaper.

b) Identify and briefly explain two (2) benefits of offshore outsourcing.

The first benefit is that it allows the company to generate a greater profit as their labour
costs will be cheaper.

Another advantage is that the individuals of the country the company chooses to move to
will have new job opportunities for its people.

c) what is a transnational corporation?

,A transactional corporation is a business operating in or involving several nations.

3. Identify some examples of human rights and labour abuses that occur in offshore
workplaces.
Some examples of human rights and labour abuses that occur in offshore workplaces are
that the workers do not get enough pay, workers are trapped in unsafe working
conditions, workers are abused for their labour and more.

4. What is the ILO and what do they do?

The International Labour Organisation is a specialized agency that seeks the promotion
of social justice and internationally recognized human labour rights.

5. What is meant by the term “sustainable development”?

Sustainable development is the process of developing land, cities, business and
communities that meet the needs of the present without compromising the ability of the
future generations to meet their own needs.

6. What is environmental degradation and what can be done to prevent it?

Environmental degradation occurs when natural resources such as trees habitat, earth
water and air are being consumed faster than nature cna replenish them. One thing that
can be done to prevent this is being environmentally conscious and buying products from
ecological ethical companies.

7. Identify three (3) possible reasons why the Canadian government would use
“barriers” to trade?
,1. Keeps business in Canada 2. Keps Jobs in Canada 3. Forces people to buy Canadian
products

8. What is a tariff and what two (2) ways can they be calculated?
,A tariff is a form of tax on certain types of imports. They are calculated on value and
specific basis.

9. What is a non-tariff barrier?

. A non tariff barrier is a standard for imported goods that are set high so that foriegn
competitors cannot easily enter the market,

10. Provide three (3) examples of non-tariff barriers.

. Buy National programs, quality standards and import licences

11. What is meant by the term “landed cost”?

. Landed cost is the actual cost for an imported item, composed of the vendor cost,
transportation charges, duties taxes broker fees and any other charges.

12. What is an excise tax?

. An excise tax is a tax on the manufacture, sale or consumption of a particular product
within a country.

13. How can “currency fluctuations” act as a barrier to foreign trade?

. Currency fluctuations act as a barrier to forgein trade

14. What is the difference between a trade deficit and a trade surplus?

15. What is the difference between direct and indirect exporting?

16. Identify the five (5) ways to offset exporting risk that are identified in the text.