AFM131 Study Guide - Final Guide: Ideo

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Robert Sproule

Document Summary

Many companies want free trade between canada and the us. Trade with canada is a low priority for the us. Umar farouk abdulmutalalb hid explosives in underpants and failed to blow up detroit bound jet. With this incident, the us closed borders even more. Us and canada are working together to bail out large companies. The border costs canada a lot of money (especially for the auto sector) If you phrase this question, you have to take sides: answer: both, good and bad. Looking at the gini coefficient to see the distribution of wealth. Why trade with other nations: can"t produce enough to be self sufficient, other nations will try to sell so they survive, abundance of goods. Free trade: trading among nations without political/economic trade barriers. Comparative advantage theory: a country should sell what its best at and buy what its worst at (in terms of effectiveness/efficiency)