ARBUS101 Lecture Notes - Lecture 1: Canada Border Services Agency, Absolute Advantage, Comparative Advantage

• School: University of Waterloo
• Department: Arts and Business
• Course: ARBUS101
• Professor: Zamal Ruffudeen Jr.

Document Summary

Module 1: the global market and why countries trade (chapter 1) Free trade is (cid:396)e(cid:272)o(cid:373)(cid:373)e(cid:374)ded as it does(cid:374) t (cid:396)e(cid:395)ui(cid:396)e i(cid:373)po(cid:396)ti(cid:374)g/expo(cid:396)ti(cid:374)g (cid:272)ou(cid:374)t(cid:396)ies to i(cid:374)(cid:272)lude tariffs and other trade barriers. Balance of trades: relationship between exports and imports. Balance of payments: difference between money imports and money exports. Theory of comparative advantage: export goods that are produced most efficient and vice versa: economic principle is ignored in the real world. Theory of absolute advantage: producing one good way better (efficiently) than other countries. Canada is dependent on the u. s: they need to diversify. Cbsa (canada border services agency): protect canadians from illegal goods. Licensing: company produces a product from another for a fee (a royalty) Franchising: sell goods to a different area given the rights to use an established business. Contract manufacturing (outsourcing): manufacturing companies make products and brands put their brands on it to sell to others.