AFM131 Study Guide - Final Guide: Economic Mobility, Gini Coefficient

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

Document Summary

Economic (has been laid out in the past few years in terms of the unprecedented global meltdown) Personal (personal debt at record level; interest rates. Threat of stimulus spending of governments around the world attempt to deal with the crisiscreates deficits. Canada is importing far more than we are exporting. Our ability to trade is related to what is going on in the us. Guy on a plane tried to blow it up. Us now believes they need to protect their country from foreign based terrorists. Increased security at the border discourages trade because of longer trips/travel time. Why export (and not just build a subsidiary) Simplest with lowest investment, risk and returns. Reduce costs if the resources are plentiful and/or cheaper. Maintain complete control over sale of product or service. Tremendous income inequalities (have become extremely dangerous) They want social cohesion rather than reduction of poverty. Provide mobility opportunities for people to move up.