AFM131 Lecture 2: AFM131 Module 01

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: David H A

Document Summary

Module 01: competing in global markets (sept 15, 17) Consumer: benefit when the world is more connected options. Employee: connect with customers, clients, or business partners in different countries, raw materials or production in other countries. Business owner: from backyard competition to global competition. Global market: more customers globally, more competition = more innovation, potential loss of jobs. Why countries trade (no country is self sufficient and can do everything themselves) To get goods that are not available today. Free trade is the ideal scenario (moving goods/services between countries without political or economic obstruction) Balance of trade relationship between exports and imports: favorable balance of trade trade surplus, unfavorable balance of trade trade deficit. Balance of payments - difference between money coming into a country (from exports) and money leaving the country (for imports), plus money flows from tourism, foreign aid, military expenditures, and investment.