MGT100H1 Lecture Notes - Lecture 10: Investopedia, Absolute Advantage, Canadian Dollar
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International company > buy & sell internationally (produce locally) Global company > manufactures in another country & headquarters in a multitude of countries. Trade is based on absolute advantage . Most trade > not based on absolute advantage, but based on comparative advantage. Relies on the ability to produce something. Comparative advantage - ability a company to produce a good at a lower opportunity cost. When you import goods from other countries - you can put people out of jobs. From a consumer perspective, you can set up inspection rules. From a selling perspective, you can offer returns or refunds. Saudi arabia - gas is cheaper than water. Market demand for certain things only made in certain countries. Even though one country is losing jobs, another company is gaining jobs. In the past, currencies are linked to gold > certificate after the establishment of the bank. How does canadian dollar affect international trade.
