Chapter 10 Flashcards
What is Outsourcing?
Reducing costs by using suppliers of products and services in less developed parts of the world
What plays an important role in trade?
Technology
Why has expansion of trade happened?
Businesses have the oppurtunity to sell to international markets because governments have opened their borders
What did trade look like before the 1970s?
Trade goods usually circulated through developed countries. Developing countries supplied the raw materials
What does trade today look like for developing countries?
-Goods and services are flowing more between
developing countries.
-And more manufactured goods are flowing out of developing countries to more developed — and wealthier — countries.
What type of countries produce more of the world’s exports?
Developed countries produce 75 percent of the world exports
What is the key to shipping good smoothly?
Containerization
How does containerization save time and space?
Good no longer need to unloaded onto a warehouse floor, they can remain in containers
How does media contriubute to trade?
They run commercials to encourage consumers to buy goods
How can businesses and countries benefit from free trade?
Because they can sell their goods or services in the other country. Local companies can expand into new markets. This creates jobs, uses resources, and reduces the cost of consumer goods
How are decisons made in the WTO?
By consensus
What can the WTO issues if a country is not cooperating with its rules?
They couldimplement sanctions such as fines
What used to be the largest free trade zone?
NAFTA
How was Canada affected by NAFTA?
Many jobs shifted into mexico
What has the European Union created?
A liberalizaed trading zone where Europeans could trade for free
