Textbook Notes (378,520)
CA (167,148)
UTSC (19,212)
MGT (1,095)
MGTA01H3 (583)
Chapter

Ch 5 Notes

4 Pages
53 Views

Department
Management (MGT)
Course Code
MGTA01H3
Professor
Chris Bovaird

This preview shows page 1. Sign up to view the full 4 pages of the document.
Friday, October 30, 2009
TN: Chapter 5 [MGTA03]
The Rise of International Business
Globalization: The integration of markets globally
Imports: Products that are made or grown abroad and sold in Canada
Exports: Products make or grown in Canada that are sold abroad
The Contemporary Global Economy
Globalization allows businesses to expand internationally, but competition, since more businesses
Factors That Sustain Globalization
a) Benefits of Globalization: ! more businesses want to participate
b) New Technology: travel, communication, commerce is faster and easier (! more likely to happen)
c) Competitive Pressures: when a firm must enter foreign markets to keep up with its competitors
The Major World Marketplaces
Per Capita Income: average income per person
High-income countries
Greater than US $10,065
Canada, US., Europe, Australia
Upper/middle-income countries
US $3255 - US $10,065
Greece, Hungry, Poland
Low/middle-income countries
US $825 - US $ 3255
Columbia, Thailand
Low-income countries
Less than US $825
East African Nations
North America > Europe > Asia-Pacific
Forms of Competitive Advantage
Countries export products that they can produce better or less expensively than other
countries and import products that they cannot produce efficiently
I. Absolute Advantage: A nation’s ability to produce something more cheaply or better than any other
country (e.g., wines in France compared to wines in California/Ontario)
II. Comparative Advantage: A nation’s ability to produce some products more efficiently or better than
it can other (e.g., South Korea has no fertile land (! does not farm) but can manufacture electronics)
III. National Competitive Advantage:
1. Factor Conditions: (aka factors of production)
2. Demand Conditions: consumer demand for innovative products
3. Related and Supporting Industries: strong suppliers/industrial customers
4. Strategies, Structures and Rivalries: firms that force efficiency/new products
These determine the time of environment the firm competes
International Competitiveness: ability of a country to generate more wealth than its competitors in
world markets
Import-Export Balances
Balance of Trade: The difference in value between a country’s total exports and its total imports
A) Trade Surplus: exports are greater than imports
B)Trade Deficit: imports are greater than exports
Canada depends on US too much since most exports go there
Balance of Payments: The difference between money flowing in to and out of a country
Our exports to them ! > " their exports to us
1
www.notesolution.com

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.

Leah — University of Toronto

OneClass has been such a huge help in my studies at UofT especially since I am a transfer student. OneClass is the study buddy I never had before and definitely gives me the extra push to get from a B to an A!

Leah — University of Toronto
Saarim — University of Michigan

Balancing social life With academics can be difficult, that is why I'm so glad that OneClass is out there where I can find the top notes for all of my classes. Now I can be the all-star student I want to be.

Saarim — University of Michigan
Jenna — University of Wisconsin

As a college student living on a college budget, I love how easy it is to earn gift cards just by submitting my notes.

Jenna — University of Wisconsin
Anne — University of California

OneClass has allowed me to catch up with my most difficult course! #lifesaver

Anne — University of California
Description
Friday, October 30, 2009 TN: Chapter 5 [MGTA03] The Rise of International Business Globalization: The integration of markets globally Imports: Products that are made or grown abroad and sold in Canada Exports: Products make or grown in Canada that are sold abroad The Contemporary Global Economy Globalization allows businesses to expand internationally, but competition, since more businesses Factors That Sustain Globalization a) Benefits of Globalization: more businesses want to participate b)New Technology: travel, communication, commerce is faster and easier ( more likely to happen) c) Competitive Pressures: when a firm must enter foreign markets to keep up with its competitors The Major World Marketplaces Per Capita Income: average income per person High-income countries Greater than US $10,065 Canada, US., Europe,Australia Uppermiddle-income countries US $3255 - US $10,065 Greece, Hungry, Poland Lowmiddle-income countries US $825 - US $ 3255 Columbia, Thailand Low-income countries Less than US $825 EastAfrican Nations North America > Europe > Asia-Pacific Forms of CompetitiveAdvantage Countries export products that they can produce better or less expensively than other countries and import products that they cannot produce efciently I. AbsoluteAdvantage:Anations ability to produce something more cheaply or better than any other country (e.g., wines in France compared to wines in CaliforniaOntario) II. ComparativeAdvantage:Anations ability to produce some products more efficiently or better than it can other (e.g., South Korea has no fertile land ( does not farm) but can manufacture electronics) III. National CompetitiveAdvantage: 1. Factor Conditions: (aka factors of production) 2. Demand Conditions: consumer demand for innovative products 3. Related and Supporting Industries: strong suppliersindustrial customers 4. Strategies, Structures and Rivalries: firms that force efficiencynew products These determine the time of environment the firm competes International Competitiveness: ability of a country to generate more wealth than its competitors in world markets Import-Export Balances Balance of Trade: The difference in value between a countrys total exports and its total imports A) Trade Surplus: exports are greater than imports B)Trade Deficit: imports are greater than exports Canada depends on US too much since most exports go there Balance of Payments: The difference between money flowing in to and out of a country Our exports to them > their exports to us 1 www.notesolution.com
More Less
Unlock Document


Only page 1 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


OR

Don't have an account?

Join OneClass

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

Sign up

Join to view


OR

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.


Submit