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

Chapter 5 Lecture Notes

2 Pages
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Department
Management (MGT)
Course Code
MGTA01H3
Professor
Chris Bovaird

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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
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