AFM131 Chapter : AFM 131/ARBUS 101 Textbook Notes

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

Document Summary

Exporting is selling goods and services to another country. Importing is buying goods and services from another country. No country can produce all of the products that its people want and need. Even if a country did become self-sufficient, other nations would seek to trade with that country to meet the needs of their own people. Some nations have an abundance of natural resources and a lack of technological know-how (e. g. china and russia), while other countries have sophisticated technology but few natural resources (e. g. japan and switzerland). Global trade enables a nation to produce what is most capable of producing and to buy what it needs from others in a mutually beneficial exchange relationship. This happens through free trade (the movement of goods and services among nations without political or economic trade barriers). Global trade is the exchange of goods and services across national borders.