RSM100Y1 Lecture Notes - Lecture 6: Limited Liability Partnership, Venture Capital, Comparative Advantage
Document Summary
Wealth (n) the annual produce of the land and labour of society adam. Wealth creation: combining materials, ideas, labour, technology so that the output can be sold for more than costs. This profit brings wealth to the people and society involved in production. Requires: combination of inputs, supportive environment, means of production, someone who will pay more than costs. Develop a product or service that you can sell for more than it costs. Trade with economies that will pay for what you have and sell you what you want. Public sector (does not mean public corporation) If a country has a comparative advantage, and its currency goes up, its comparative advantage will decrease. (more expensive to purchase goods from the country) The international monetary fund (imf) promotes trade by providing assistance and waving debt payments. They have full burden of the liability. They declare only one tax return (by declaring you have a business in your tax return)
