AFM131 Final: Final Exam Notes

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: David H A

Document Summary

Cons: domestic workers lose jobs to increased imports/production shifts to low wage global markets: workers threatened to accept pay cuts (employers can move to low wage global markets, loss of service jobs & white collar jobs in developed high wage countries, domestic companies lose comparative advantage when put up against advanced production operations competitors in low wage countries. Comparative advantage theory: country should sell to countries those products it produces most efficiently, and buy from other countries those products that it cannot produce as effectively or efficiently: e. g. japan with cars and electronics; can with forestry products, problems: many countries decide to produce certain agricultural, industrial or consumer products despite a lack of comparative advantage. Article: canada"s auto sector (p. 9: single biggest contributor to can manufacturing gdp (12% nationally, 1/7 can employed (in)directly, positive impact on economy: 3:1 economic multiplier, huge export orientation, shrinking due to globalization & environmental changes.