GMS 522 Lecture Notes - Lecture 4: Financial Innovation, Economic Integration, Win-Win Game

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 522
• Professor: Carlyle Farrell

Document Summary

Which model could be used to explain int trade flows (d) cultural distance: hecksher ohlin. The theory of comparative adv argues that in trade is a: positive sum game. The economic environment is an uncontrollable variable for the global marketer. Dealing with variables such as: interest rates, inflation, exchange rates. These variables affect the demand for importing products. The economic environment has significant impact on: the selection of countries for foreign market entry, the firms local market strategy in the foreign country. In assessing foreign markets we need to examine: market size: Population is an indicator of market potential. Demand for imported products is linked to population size: income levels. Represents purchasing power and is a good indicator of market potential for most products. The two most populous countries (china and india) have low income levels, compared to industrialized countries (us &