RSM100Y1 Lecture Notes - Lecture 8: Gorgonzola, International Trade, French Wine
14 Mar 2016
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Document Summary
Why do companies trade: using-up excess resources/ capacity - saudi national oil company can sell petroleum products on international markets for much more money than they could at home. Consumers will pay lower prices and have greater choice among goods available. Greater export opportunities lead to more jobs, faster economic growth. Prevents the economic distortions of trade barriers: sub-optimal outcomes for both countries if absolute and comparative advantages are not realized through free trade. Free(r) trade is a key driver of globalization. Canada is a participant in free trade arrangements: fta, nafta. International financial system has existed for as long as international trade - the two inter-operate closely and trade is dependent on the financial system. One of the characteristics of sovereign states (nations) is that they issue their own currencies, representing the wealth of the nation. For more than one hundred years, currencies were pegged to the value of gold - the.
