MGTA05H3 Lecture Notes - Lecture 11: North American Free Trade Agreement, Secondary Sector Of The Economy, Primary Sector Of The Economy

• School: UTSC
• Department: Management
• Course: MGTA05H3
• Professor: Chris Bovaird

Document Summary

International trade: transactions that involve products or services crossing international borders. Silk road and spice route: romans established trading routes for buying silk and spices from india. Marc polo travelled from venice to china in 13th century for trade. Open economy: a country that is willing to buy from and sell to sellers and buyers in other countries. Closed economy: a county that refuses to trade with the rest of world, attempts to be self-sufficient like north korea. Comparative advantage: the choice to concentrate resources and production on industries where a country is most internationally competitive, and not compete with products that are only made moderately well. Opportunity cost: value of what"s given up in order to get something else. Primary industry: an industry that harvests or extracts natural resources. Secondary industry: an industry that manufactures raw materials into finished good. Free trade: international trade that involves minimum government interference into the flow of goods and services across borders.