BU111 Lecture Notes - Lecture 19: Canada Trust, Trust Company, Td Canada Trust
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If you understand it from the investors" perspective, you understand corporation"s perspective. The dollar today is not the same value as the dollar tomorrow. Balance of trade means imports vs. exports can be a surplus or deficit. Imports < exports means trade deficit bad because money is leaving the country as we are paying companies that sell their product in our country from abroad. Balance of payments: difference between money flowing in and out of the country as a result of trade and other transactions. When the exchange rate (value of currency) goes up, it increases your buying power. More imports, less exports when high exchange rate bad for exporter; less competitive. Gdp can sometimes overstate the true value inaccuracies. Growth can be good, but we must consider who it is impacting we want gdp for all. Financial institutions facilitate the flow of money from surpluses to deficits.
