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BBB4M: Lesson 7 Quiz

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BBB4M: Lesson 7 Quiz

How Does Canada Compare?

Choose ONE developed country and ONE developing country to compare to Canada.

Look up at least 5 of the following statistics in order to compare the three countries:

  • Human Development Index rank
  • Per capita income (GNI per capita)
  • Population who earn below $2.00 per day
  • GDP
  • Health (% expenditure of GDP)
  • Adult literacy rate
  • Birth rate
  • Death rate
  • Infant Mortality rate
  • Maternal Mortality rate/100,000
  • Life expectancy at birth
  • Education (expected years of schooling)
  • Share of seats in parliament (% of women)
  • Employment (Unemployment rate – % 15+)
  • Child Labour (% ages 5-14)
  • Human Security (Prison population rate per 100,000)
  • Homicide rate per 100,000
  • Mobility and communication (Internet users %)
  • Demography (urban % of population).

The following resources will help you as you complete the task:

  • United Nations Human Development Reports
  • National Geographic’s A Developing World

Organize your comparison statistics in a table, and write a paragraph which describes the conclusions you can draw from analyzing the statistics.

Consider This

Is democracy necessary for international business?

What’s the Risk?

Companies look at the host country’s current or future political system to assess the political risk. However international business always faces some political risk. For example, if you operate a Canadian company, foreign customers may be unable to pay in full on time because of instability from currency controls imposed by the government.

Emerging Markets

The importance of emerging markets to world trade cannot be understated. In 2006, they accounted for 30% of world exports, up from 19.5% in 1996 (Carnegie). The BRIC economies’ (Brazil, Russia, India and China) share of world exports has more than doubled, rising from 6% to 12.5%. Developing countries also represent a growing source of import demand, with growing middle classes and an increase in the availability of foreign exchange. Most developing countries have trade deficits and have no choice but to welcome international business into their countries. Encouraging foreign direct investment is a preferable option to financing deficits by borrowing money at high rates.

As wages and education levels in developing countries rise, it is predicted that patterns of comparative advantage (the ability to produce something at a lower opportunity cost than someone else) will begin to shift. Low developed countries will be able to benefit by offering lower wages, developing countries will increase their success in the manufacturing of products, and developed countries will be forced to innovate and differentiate even further in order to sustain their market positions in high value-added products. However, these benefits will only be realized if protectionist sentiments are stifled and governments support and promote international trade.

“Sell” an Emerging Market

Choose ONE of the “super seven” countries identified in the Fortune video above.

Research the following information about that country:

  • Economic System
  • Political System
  • Level of Corruption/Political Risk
  • Competitive Advantages Create a commercial or sales pitch to “sell” this country to businesses.

Explain why this country is one of the world’s most powerful emerging markets.