RSM100Y1 Chapter Notes - Chapter 4: Foreign Exchange Market, Protective Tariff, International Trade
Document Summary
Exports domestically produced goods and services sold in other countries. Imports foreign goods and services purchased by domestic customers. Increases economic growth in two ways: by providing a new market for products and by providing access to needed resources. Availability, price, and quality of labour, natural resources, capital, and entrepreneurship. Trading with other countries allows a company to spread risk different nations may be at different stages of business cycle or in different phases of development. International trade benefits to human and natural resources, entrepreneurship, capital, and size of the global market. Increasing the ability to reach new groups of customers while enlarging their global business. Attracted to giant markets while looking for new revenue. Popular size does not guarantee economic prosperity, where small population may create great wealth for their citizens. Low income, huge population in developing countries may represent profitable markets. High growth rate in gdp represents opportunities for global businesses.
