AFM131 Lecture Notes - Foreign Direct Investment, Quanta Computer, Multinational Corporation
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AFM131 Full Course Notes
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Global trade: the exchange of goods and services across national borders. Exporting: selling goods and services to another country. Importing: buying goods and services from another country. Free trade: is the movement of goods and services among nations without political or economic trade barriers. The global markets contain more than 6. Domestic workers can lose their jobs billions consumers for trade. Productivity grows when country produce goods and services with a comparative advantage due to increased imports shifted to lower-waged global markets. Workers can be forced to except pay cuts. Moving operations overseas often products and keeps firms competitively challenged means the loss of service jobs and white collar jobs. Example: zambia has an absolute advantage over many countries in the production of copper due to its copper ore reserves. Two key indicators measure the effectiveness of global trade: balance of trade & balance of payments. Balance of trade: is a nation"s ratio of exports and imports.