Midterm #1 Review 9 pages of notes including all of the definitions and points from the globalization module to the accounting module

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Accounting & Financial Management
AFM 131
Robert Sproule

Globalizationpersonallydeficits can cause more unemployment and affect the exchange rateconsumerlower prices wider variety of choices better qualityemployeeharder to find domestic jobs may earn less business ownercan exportimport with a different market can work together greater competition cheaper resources in other areasstudentchanges in tuition different job opportunities program competitioneffect on the poorwidening the gap between the rich and the poor have moved from extreme poverty more jobs leads to rapid economic developmenthigh Gini coefficientlarge spread between the rich and the poorconcern for income equalityeven in developed countries interprovincial trade in Canada isnt very protected issues between Quebec and Ontario increases barriers to globalizationfree trade movement of GS among nations without political or economic obstructionsProsConsmore potential customersdomestic workers may lose jobs may hire other lesscostly imports keep prices lower reducing workers in favor of paying lower wagesinflationgreater innovation and competitionaccess to foreign investments keeps interest rates lowComparative advantage theory states that a country should sell to other countries those products that it produces most effectively and efficiently and buy from other countries those products that it cannot produce as effectively or efficientlyabsolute advantage advantage that exists when a country has the ability to produce a particular good or service using fewer resources a lower cost than another country ex Zambia has copper reservessmall businesses in Canada are 48 private provide 85 of exportsservice imports are only about 15exports account for 1 in 5 jobs in Canadabalance of trade a nations ratio of exports to importstrade deficit occurs when the value of a countrys imports exceeds its exports balance of payments difference between money coming into a country exports and money leaving imports plus money flow factors such as tourism foreign aid military expenditures and foreign investmentvery dependent on the States 688 of our imports and 735 of exports bc of close proximity financial similarity fresh water minerals close exchange rate similar political views culture language Auto PactPriority Markets greatest potential for growth1Association of South East Asian Nations2AustraliaNew Zealand3Brazil4China5Europe6Gulf7India8Japan9Korea10Latin AmericaCaribbean
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