MKT 337 Chapter Notes - Chapter 7: Protectionism, Barter, North American Free Trade Agreement
Document Summary
An estimated 15-20% of the world trades through countertrade. Countertrade: the practice of using barter rather than money for making global sales. Countertrade is popular in eastern europe, russia, and asian countries. Trade feedback effect: every nation"s exports are effected by another nations imports. Us has the greatest gdp (dollar value of all goods and services in a region within a year) Us share of world exports has decreased over the pst 3 decades. Although there has been an absolute growth in us exports, the relative growth has diminished. Balance of trade: the difference between the monetary value of a nation"s exports and imports. Exports > imports = surplus, otherwise it is a deficit unless balances. Us has a continuing balance of trade deficit. Volume of exports and imports has increased dramatically. 4 interconnected categories that explain a nation"s competitive advantage.
