MGTA01H3 Chapter 5: Chapter 5 MGTA03
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MGTA01H3 Full Course Notes
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Business activities that involve exchanges across national boundaries eg. canadian businesses selling to us customer. Open to flow of goods and services across border. Must have no trade barriers or protection. No country can make everything quickly, cheaply and well. Some countries are better equipped than others to make particular products. 2 sources: absolute advantage: things we make and sell, because others cant. Comparative advantage: this we make and sell, becase we can and. Absolute advantage- nations ability to produce goods and services more cheaply or better than in any other country. Comparative advantage- nation chooses to make or produce some products (i. e. specialise) more cheaply or better than other products. (i. e. Comparative advantage- nation chooses to make or produce some products (i. e. specialise) more cheaply or better than other products. (i. e. hockey players) Products or services that we cant/don"t make particularly quickly, cheaply or well. So we buy it from another country.
