ADMS 1000 Chapter Notes -Outsourcing, Mercosur, North American Free Trade Agreement

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Eytan Lasry

Document Summary

Power held in home country e. g. r & d investments. : the purchase, sale or exchange of goods or services across countries: the logic of trade: encourages nations to specialize in goods/services in which they are most efficient and trade with other countries for goods/services not produced domestically. Specialize in what we"re good at because we can"t do everything domestically. Comparative advantage: history of int"l trade, mercantilism (1500-1800) Encourages trade surpluses where exports of goods or services exceed imports: trade protectionism. Limits competitiveness of domestic firms: impact on exporting country: Lower production, job losses, economic decline : impact on importing country: Less competition for domestic firms, rising sales, prices, employment, spending, government revenues . Increased costs to consumers, less spending on other industries, economic decline, costs of imposing + collecting tariffs, possible costs of retaliation and trade wars : trade organizations, worldwide. Gatt (1948) 100 countries agreed to reduce tariff levels.