BUS 150 Lecture Notes - Lecture 3: Ethnocentrism, World Trade Organization, North American Free Trade Agreement
5 Oct 2015
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Globalization: the increasing tendencies of the world to act as one market. Good consequences of globalization: access to products, goods, and raw materials, trade b/c it"s more efficient, cheaper products, more competition, lower labor costs. Us balance of trade deficits and other imbalances. World"s most competitive countries: switzerland, singapore, finland, united states, hong kong, germany, netherlands, japan, united kingdom. A: social structure, investment in infrastructure, free education. Economic globalization: the increasing integration and interdependence of national economies around the world. (what happens there, happens here. ) Exchange rate: the rate at which the money of one country is traded for the money of another. (ex: s1 usd = 0. 89 eur) A: less, b/c the guy importing $ from the us would have to then sell a lot of euros, for example, because the dollar is so strong. Q: if money is high, then our imports are cheaper. A: less, b/c production costs are less then.
