COMMERCE 2MA3 Chapter Notes - Chapter 16: Economic Sanctions, Gross Domestic Product, Foreign Exchange Controls
7 Dec 2016
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Document Summary
Globalization: refers to the increased flow of goods, services, people, technology, capital, information and ideas around the world; has economic, political, social, cultural and environmental impacts. Global markets are results from: reduction or elimination of trade barriers by country governments. Decreasing concerns of distance and time with regard to moving product and ideas across countries the standardization of laws across borders. Globalization has created economies of scale but also made it possible for many niche markets to be profitable at a global level. Many canadian companies are part of the global supply chain, supplying inputs and raw materials rather than marketing finished products. To assess the global market an environmental analysis called pestel can be done to refer to these factors. Pest stands for, political/legal, economic, socioculturals and technology. All of these factors are taken into consideration together when determining the market potential of a country.
