BUSI 1600U Chapter 3: Understanding Canadian Business [BUSI1600] - Chapter 3 Notes
Document Summary
Exporting > selling goods and services to another country. Importing > buying goods and services from another country. Some countries have abundant resources without any technology to use t hese resources. Other countries have technology without any resources to use the techn ology with. Trade between nations allows for countries to specialize in what they do and trade that good or service (coffee in colombia, for example) at a low pri ce in high qty. Free trade > the movement of goods and services between countries with out economic or political barriers. ~!~ the theories of comparative and absolute advantage ~!~ Comparative advantage > a theory that states that a country should sel l the goods that it produces most efficiently and buy the goods it produces with least efficiency. Absolute advantage > the advantage that exists when a country has the ability to produce goods more efficiently (with fewer resources) than another co untry.
