COMMERCE 1E03 Lecture Notes - Lecture 3: Taco Bell, Efficiency Ratio, Offshoring
7 Feb 2018
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Document Summary
The economic welfare of our nation is significantly affected by the degree to which those in other nations buy our products, invest in our country and lead our funds as we require. Our ability to borrow and the interest rate we will have to pay will depend on the confidence foreign leaders have in our economy. Globalization is the development of an increasingly integrated global economy marker especially by free trade, free flow of capital, and the tapping of cheaper foreign labour markets. Canada is a market of more than 35. 7 million people but there are almost 7. 53 billion potential customers. This year world population will increase by 59 million. The largest countries are china (1. 39 billion), india (1. 34 billion), and u. s (326. 47 million), and indonesia (263. 51 million) Strategies for reaching global markets: licensing (least risky) A firm (the licensor) allows a foreign company (the licensee) to produce its product in exchange for a fee (a royalty: exporting.
