RSM100Y1 Chapter Notes - Chapter 4: Foreign Exchange Market, Corruption Perceptions Index, International Business
Document Summary
Economic interdependence is increasing throughout the world as companies look for new markets for their goods and services and the most cost-effective locations to set up factories. Exports: domestically produced goods and services sold in other countries. Canadian exports/imports make up about 30% of canadian gdp. Imports: foreign goods and services purchased by domestic customers: 10th largest exporter, exports/imports worth + billion each. Companies that do business with other countries need to work with new social and cultural practices, different economic and political environments, and legal restrictions: must also adapt business plans to work with the markets in other countries. Firms that do business in other countries take advantage of large populations, healthy resources, and rising standards of living abroad that increase foreign interests in their goods/services: the canadian market"s high purchasing power attracts foreign companies here. Trading with other countries increases economic growth in two ways: by providing a new market for products, by providing access to needed resources.
