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Critical Thinking 1
Critical Thinking 1
Critical thinking #1
Julio Crespo
Centennial College
Joan Rempel
Critical Thinking #1
About 99 percent of the world population live outside Canada, but many Canadian
companies, especially small businesses, still do not engage in global trade. Why not? Do you
think more small businesses will participate in global markets in the future? Why or Why
not?
Canada is a large country with 9.9 millions 𝑘𝑚2 and 38 millions of population (United
Nations Population Division. 2019), compare with United States which have 9.8 millions 𝑘𝑚2
and 329.4 millions of population (United Nations Population Division. 2019), Canada is a
country in growth with a widely necessities attending most likely by national’s companies and
United States companies, according with William G, M. (2019) “we see that we are dependent on
one country, the United States”. So thanks to the great international trade with United States,
Canada export 74.5% and import 67.8% of their products with U.S. William G, M. (2019), open
up to a global trade is unlikely in this times because the most of Canada companies belong to
small company sector as it shows on table 1. With the 97.9% these companies are working
comfy according with their capacity and do not need expand their market.
Figure 1. Small Business Tourism and Marketplace Services. (2020, December 10)
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On the other hand, small businesses will grow along with the country and more and more
will be opening up to the international market. There are some reasons why the degree of
knowledge they have, or perhaps they are so concentrated and busy with the local market that
they have not been able to think about the international market. A study revealed that Sarah
Niedoba. (2019, October 25). that "46% felt they didn’t have the insights needed to identify
markets for expansion, 63% said they didn’t know the steps required, and 24% didn’t even know
where to start." From the above we can deduce that these companies are serving the local market
and that is enough and on the other hand they do not know the steps required to open up to the
international market. For the latter, I do believe that with the country's population growth, small
economic and financial, legal, and physical and environmental forces in global markets?
It is a fact that companies that enter international markets, especially those that decide to
carry out operations in countries other than their origin, could face problems such as Socio-
cultural factors, Economic and Financial factors, Legal and Regulatory factors, Physical and
Canadian business (9th ed.). Several companies implement strategic alliances with other
and adapt them to their business model, such is the case of joint ventures, through this strategy
the companies share technology, expertise in marketing and in addition to everything they access
the market as if they were local companies. Some other companies such as MacDonald using the
franchise model have penetrated different markets with strategic alliances, it could be said, but in
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this case they do not change their brand, they have achieved this by adapting their brand to the
customs and characteristics of the countries where they have arrived. In this way you can deal
Countries like Canada that have a high standard of living are referred to as
industrialized nations. Countries with a low standard of living and quality of life are called
countries.) What factors prevent developing nations from becoming industrialized nations?
There are many factors that can affect developing countries to become developed
countries, such as the lack of resources such as clean water sources, fertile lands or minerals such
as gold, among other important factors. Although these mentioned are important, there are some
other examples such as China, who do not have an abundance of natural resources but have a
strong economy, that is why the greatest resource and the one that makes the difference between
a developed country and a developing country could be Factors other than natural resources, we
could also talk about good international relations as is the case in the free trade agreement
between the United States, Canada and Mexico. Another example of this is the European Union.
In addition to these factors that affect development, the most disastrous of all must be considered
and that is corruption, I could take the example of South America, where the levels of corruption
are overwhelming, this factor being the main responsible for underdevelopment, because all
South American countries have many natural resources, many of them also with good
international relations, but there are more negative effects that these relations produce than the
benefits, added to the mismanagement of public resources by the political power, have
How would you justify the use of revenue or protective tariffs in today’s global
market?
The collection of these fees is important because it maintains and protects the domestic
product, not only collecting taxes when importing or exporting but also limiting the quantities,
when a country does not limit the import quantities it puts productive sectors at risk, such as
"China and Taiwan, were found guilty of dumping solar panels in the United States. " William
G, M. (2019). It is precisely what tries to control the collection of taxes or the control of
quantities that imported products are not more economical than those that are produced in the
country, since this would cause a very great disadvantage in the economic growth of the country.
the tariffs (import taxes) charged by the government then justify their existence based on the
concept that they exist to protect the internal market, by applying tariffs the prices of these goods
References
United Nations Population Division. (2019). Population, total - Canada. World Bank Open
Sarah Niedoba. (2019, October 25). Why are Canadian companies so afraid to go global?
News. https://www.canadianbusiness.com/economy/why-are-canadian-companies-so-
afraid-to-go-global/