MGTA01H3 Study Guide - Midterm Guide: Market Economy

• School: UTSC
• Department: Management (MGT)
• Course: MGTA01H3
• Professor: Zachariah Campbell

Document Summary

Productivity & efficiency - productivity vs labour productivity: labour = amount produced for labour input, measures how productive workers are, overall productivity = everything. Success & failure in the small business. Entrepreneurs, taking risks & building the business. Corporations: owners are shareholders, limited liability, directors are legally responsible, managers actually manage. Advantages & limits of the corporate form. Corporations as a source of value for shareholders. Localization: natural resources, competitive advantages, reach larger markets, obtain goods, trade adds value to both participants. Local disadvantages: more efficient production elsewhere, lack of resources. Why trade: value of trade itself, combat localization, need for profit in marketplace & to fund corporate growth. Forms of doing business outside canada: direct sales, sales agents, licensing & franchising, branch plants, strategic alliances, direct foreign investment in a subsidiary. Barriers to trade: tariffs, protective, & revenue, quotas, embargos, subsidies. Why restrict trade: protect new industry, health, security, promote local industry.