ADMS 1000 Study Guide - Final Guide: Protectionism, Mercantilism

• School: York University
• Department: Administrative Studies
• Course: ADMS 1000
• Professor: Peter Modir

Document Summary

The generation of a single world economic system. The expansion of the degree and forms of cross-border transactions. The growth in direct foreign investment in regions across the world. The shift toward increasing economic interdependence the process of generating one world economic system or a global economy. Mncs have no allegiance to the host country. Profits are returned to the home country. A country"s wealth depended on its holdings of treasure, typically in the form of gold. Mercantilism, essentially, is the economic policy of accumulating this financial wealth through trade surpluses. Trade surpluses come about when a country"s exports exceed its imports. Is about protecting a country"s domestic economy and businesses through restriction on imports. Problems: trade retaliation, increased costs to consumers, and limits competitiveness of domestic firms. Less competition for domestic firms, rising sales, prices, employment, spending, government revenues .