Chapter 3 Flashcards
What are Canada’s top 3 sectors?
agricultural, service, manufacturing
competitive advantage
is a product that a country or company is better at producing than its competitors.
Foreign Investment
occurs when a company expands its business into a foreign country.
Human Development Index
health (life expectancy at birth), education (literacy rate and school enrolment), and standard of living (GDP per capita).
Productivity
as the amount of output with respect to the amount of input
What are some of the most problematic factors for doing business?
- inefficient government bureaucracy
- the capacity to innovate
- tax rates
Basic Requirements for global competiveness index
Institutions - how well governemt, individuals and firms interact to generate weath
Infasturture- transportation, telecommunications, and electricity
Efficiency Enchancers
Higher Education and Training - for economies that want to move up (India)
Technological Readiness - economy adopts exsisting technologies to enchance the productivity of its industries
Innovation
Business Sophsitication - condicive to higher efficency in the production of goods and services
Innovation - sufficent investments in R&D which in turn may lead to cutting edge products
Economies of Scale
arise by offering standard products accross many market
Experience
resources may be shared accross countries given rise to an advantage
Location
the global company can choose the most advantagous place, produce products in one company, assemble them in another etc.
Differention
allows for organizations on a global scale to service multinational buyers
Innovation drive productvity
- something canada needs to work on
- a more productive economy grows faster, adapts better, and supports higher wages.
Pros of Globalization
Cheap Labor → This could be argued as either a pro or con depending on what perspective you look at. From the perspective of businesses in the U.S, the cheaper labor they receive is a huge pro. For example, the family farm that grows tobacco and cotton, they are to receive legal migrant workers from Mexico. According to the family “ no locals are willing to put in the hard work the migrant workers do”.
Medicines → Beneficial to study and make medicine in China as they do it cheaper. Therefore when a new drug does come out it is more affordable for everyone. Like the person studying and researching AIDS medicine.
