BUS 348 Study Guide - Midterm Guide: Countertrade, Trade Association, Absolute Advantage
23 May 2019
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Why so very successful: world peace, role of multinationals. No legal authority i. ii: most successful at knocking down trading tariffs between countries, financial safety, spot rate i, technology. Exchange rate at time of agreement: communication, easy shipping. 5: better in one area than anyone else in the world, maximum the advantage i. Costa rica has the best bananas in the world by chance no by choice. Eventually will have natural shortage of bananas , will need to increase output. Make the most out of market by putting major focus on bananas. Farmers all farm bananas, clothing factories switch to making shipping crates. This makes all the resources go to bananas at the expense of everything else in the countries. Now has to import just about anything else: foreign attraction. Much more expensive and harder to carry out. The only reason they (e. g. bmw) are coming to the.
