[AFM 131] - Final Exam Guide - Everything you need to know! (34 pages long)

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Mohsin Bashir

Document Summary

Describe the importance of the global market and the roles of comparative advantage and absolute advantage in global trade. Explain the importance of importing and exporting and define key terms used in global business. Illustrate the strategies used in reaching global markets and explain the role of multinational corporations in global markets. Evaluate the forces that affect trading in global markets. Debate the advantages and disadvantages of trade protectionism, define tariff and non-tariff barriers, and give examples of common markets. Discuss the changing landscape of the global market. Businesses are continuously looking for opportunities to grow their businesses. Expanding into the global market opens a door to more potential customers. No country can produce all the products that its people want and need. Pros of free trade (in the global market): Productivity improves when countries only produce products in which they have a comparative advantage. Global competition for less-costly products keeps prices down.