ECON282 Lecture Notes - Lecture 5: Exchange Rate, Capital Outflow, Foreign Direct Investment
24 Jul 2016
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Chapter 5 lecture notes global financial system and exchange rates. Add up all exports and imports and divide by gdp. Canada"s manufactured goods are less competitive in the world market right now. China, mexico etc. are exporting at cheaper prices. Canada"s exports and imports have fallen so canada is les globalized and less involved in international trade since its peak in 2000. The us is not that globalized it has a lot of customers at home and has a diversifies economy producing many different things. China peaked in 2006 and fell with the recession hasn"t really gotten back up. China is also becoming more diversified selling within the country more. People getting pessimistic has huge implications in a recession. As we get more connected globally pessimism spreads especially through social media. Most services exported and imported are financial, insurance related. Tourism if someone from china comes to canada, its canadians exporting a tourist service to china.
