ARBUS101 Chapter Notes - Chapter 1: Foreign Direct Investment, Frito-Lay, Joint Venture
29 Nov 2016
School
Department
Course
Professor
Document Summary
Trade is important because no country can produce everything that their consumers need and want. Free trade: the movement of goods and services among nations without political or economic barriers. Comparative advantage theory: theory stating that a country should sell to other countries those products that it produces most efficiently and buy what they don"t. Absolute advantage: when a company can produce a specific product more efficiently then any other country (doesn"t last forever) Small businesses contribute slightly more than 30% to canadas gdp and 86% of canadian exporters were small businesses. The cbsa deals with all imported goods and services however products must comply to conditions set by the provincial and federal government (ex. Emission standards, prohibited entry 4 hate literature, permits for certain goods) Exports account for 1/3 of canadian jobs. Balance of trade: a nations ratio of exports to imports. Trade surplus: occurs when the value of the countries exports is more than the imports.
