AFM131 Chapter 3: Chapter 3 - Globalization Textbook Notes

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

Document Summary

Dynamic global market: canada is a large exporting nation as our population is . 05% of the world"s population, export: selling products to other countries, global trade allows: A nation to produce what it is most capable of producing, over and above local consumption. Buy what it needs from other nations which is mutually beneficial: free trade: movement of goods and services among nations without political or economic barriers. Pros: more customers, more competition, inspires innovation. Cons: loss of domestic jobs, pay cuts for domestic workers, loss of comparative advantage: comparative (producing more effectively and efficiently) versus absolute advantage (producing what someone else cannot produce or more efficiently than all other countries) Balance of trade: ratio of exports to imports. Good to export more than import, trade surplus. Concluding the canada european union economic and trade agreement. Seeking an economic partnership agreement with india. Advancing free trade negotiations with japan and south korea.