AFM131 Chapter Notes - Chapter 3: Canada Border Services Agency, Absolute Advantage, Quanta Computer

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: David H A

Document Summary

Consumer: benefit when world is more connected, more options/better quality/lower prices. Employee: connect with customers, clients, or business partners in different countries, raw materials or production in other countries where it"s cheaper. Business owner: go from backyard competition to global competition. The global market: canadian market vs. global market. To get goods that are not available locally: even if a country is self-sufficient, other nations would seek to trade with that country to meet the needs of their people. Mutually beneficial exchange relationship (ideal scenario: free trade: movement of g/s among nations without political or economic barriers. Productivity improves when countries produce g/s where they have a comparative advantage. Global competition /less costly imports keep prices low. Interest rates low: countries have access to foreign investments. Paycuts for workers when employers can employ lower-cost global market workers. Global trade: exchange of g/s across national borders. Also includes exchange of art, sports, cultural events, medical advances, space exploration, labour.