COMM 1010 Lecture Notes - Lecture 5: Free Trade, Mercantilism

• School: Dalhousie University
• Department: Commerce
• Course: COMM 1010
• Professor: Mc Larney Carolan

Document Summary

The tendency of businesses, technologies, or philosophies to spread throughout the world, or the process of making this happen total interconnected marketplace unhampered by time zones or national boundaries. Canada = the potential market of the 31 million customers. There are over 6 billion potential customers globally. Belief in the bene ts of pro table trading; commercialism. A nations wealth depends on accumulated trade. Gold & silver = the currency of trade. The theory says you should have a trade surplus. A situation in game theory in which one person"s gain = to another"s loss, net wealth = 0. The ability of a party (indiv, rm, country) to produce > quantity of a good/product/service using the same amount of resources. Cheaper supplies, additions to production line, risk reduction of non-supply. Use of excess capacity, greater pro t, cost reduction. Capability of one country to produce more of a product w/the same amount of input than another country.