MGTA05H3 Lecture Notes - Lecture 9: Protectionism, Music Of Canada

• School: UTSC
• Department: Management
• Course: MGTA05H3
• Professor: H Laurence

Document Summary

Different degrees of competitive advantage in different countries. Ca(cid:374)ada does(cid:374)"t ha(cid:448)e a large do(cid:373)esti(cid:272) (cid:373)arket they must export to expand their market unless there is a large domestic market in a specific country they want to target. Those domestic markets become worried about foreign companies trying to steal their share. A way of the government to encourage people to buy domestically. If the foreign companies take over the domestic market, then the domestic market would crash unemployment, closure of companies and chains, etc. This hurts (cid:272)o(cid:373)pa(cid:374)ies (cid:449)ho do(cid:374)"t have the competitive advantage and have to sell at a higher price. People (cid:449)ho do(cid:374)"t (cid:271)e(cid:374)efit are people (cid:449)ho (cid:272)a(cid:374)"t produ(cid:272)e effi(cid:272)ie(cid:374)tly. You can get things out of season (eg. mangoes) Tariff: tax imposed on the importer at the border. Makes the importer more expensive so the domestic companies can have the price advantage.