MGAB01H3 Chapter Notes - Chapter 5: Comparative Advantage, 1997 Asian Financial Crisis, International Trade
23 Oct 2017
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Globalization: movement of goods, services, technology, investment, ideas, and people around the world. Happened when trade barriers were reduced after wwii. Increased as technology developed, increasing made us more interconnected. Outsourcing: other countries with cheaper materials and labor. Lower prices: increased competition drives prices down. Improved human rights: media coverage of human rights violations. Increased productivity: countries put their comparative and absolute advantage to good use. Better jobs: exporting is a difficult job, which will pay well. Increased capital flow: foreign investors give citizens employment, and smaller countries will be tied to others, who will likely loan money to them if they need it. Lost/fear of lost cdn jobs: outsourcing is evil. Loss of cdn productivity: canada loses its comparative advantage because other developing countries are much cheaper. Exploitation of cheap labor: children, uneducated, prisoners are worked w/o knowledge of their rights. Increased pollution: big companies work at countries that have shit standards.
