MGM101H5 Chapter Notes - Chapter 5: Foreign Direct Investment, Comparative Advantage, Management System

• School: UTM
• Department: Management
• Course: MGM101H5
• Professor: Dave Swanston

Document Summary

G7/8: quasi-organization comprising world"s most fully developed economies. G7 consists of us, japan, germany, great britain, france, italy, and canada. G7/8 with inclusion of russia into its membership. Heads of countries meet at least once annually to discuss major economic political, and societal issues challenging global marketplace. Key factors critical in ensuring resilient/competitive economy: productivity gains, strong business investment, technological innovation, moderate wage increases, and favorable currency exchange rate. Core requirement to stability and growth of economic system is ability to support and promote current and future economic activity. Encompasses ability to provide stable environment for economic growth and ensure the required businesses and economic management systems in place to support organized approach to economic development. Factors: political stability, manageable levels of national debt, established factors of production, national monetary policy and banking system. Sufficient levels of investment, low inflation, absence of corruption, effective legal system, comparative advantage.