Textbook Notes (369,133)
Canada (162,403)
MGTA01H3 (583)
Chapter 5

Chapter 5 Lecture Notes

2 Pages

Management (MGT)
Course Code
Chris Bovaird

This preview shows 80% of the first page. Sign up to view the full 2 pages of the document.
International Business Part 2  30% of Canada’s GDP is based on International trade 1. Balance of Trade 2. Balance of Payments 3. Exchange Rates 4. Barriers to Trade a. Tarriffs b. Quotas c. Subsidies d. Embargoes Review  Canada involved in international trade forever  Ppl came to Canada to get stuff that they couldn’t get in there country but could in Canada  Sell $400 billion worth of exports in a year compare that to the $1400 trillion GDP, This is why we care about international trade  We are an “open” economy: means that we love to trade with ppl coz we want the best stuff from all around the world.  The problem with importing is that money leaves the country so we should have more exports  We sell a lot of cars and car parts, due the excess amount of factors of production Balance of Trade  We want everyone to buy our stuff ie. More exports  Ppl wont buy from us if we don’t buy from them therefore we have Imports  Balance of Trade = Exports – Imports  Historicaly: o We have had a positive balance of trade o More money came in then went out  In 2008 the positive balance of trade changed because of the financial crisis o The big stores had to cut prices o So Americans stopped coming to Canada to buy stuff  The value of the Canadian dollar has increased which makes it difficult to export Exchange Rates:  As the Canadian dollar increases ppl wanna go buy more stuff from America  Weak Canadian dollar o Bad for consumers o Good for Canadian business  SAQ- Canadian dollar is worth a specific amount of currency. After many years how did the balance of trade changed?  How does other currency fluctuates effects us Balance of Payments:  Measure of money inflowing and outflowing a country  Similar to balance of trade  Balance of Payments= Exports – Imports +/- other things
More Less
Unlock Document

Only 80% of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.