MARK 3000 Chapter Notes - Chapter 8: Gross National Income, Purchasing Power Parity, Washing Machine
9 Feb 2017
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Document Summary
Globalization: the process by which goods, services, capital, people, information, and ideas flow across national borders. Reduction in trade barriers, decreasing concern with distance and time, standardization of laws across borders, and globally integrated production processes aid in globalization. Increasing globalization affects large us corps looking for new markets as well as smaller businesses that rely on globally produced goods. Evaluating the general economic environment: greater the wealth of people in a country, greater an opportunity for a firm, a firm should use several metrics to determine an economy"s health: Trade deficit: when a country imports more goods than it exports (united states more competition at home from foreign producers) Trade surplus: higher level of exports than imports (firms prefer to manufacture in these countries) Gross domestic product (gdp): the market value of the goods and services produced by a country in a year; gauge size and market potential; most widely used.
