Chapter 33 - International Trade Flashcards
Gain from trade
Is when a country that can consume more than that can produce as result of specialization and trade
Intra-industry trade
International trade of goods was in the same industry
What is splitting up the value chain?
Many of the different stages of producing a good happen in different geographical locations.
Value chain
How good is produced in stages
Tariffs
Taxes the government’s place on imported goods
What is comparative advantage?
When a nation or region can produce a good and a lowered to domestic opportunity cost compared to a training partner
(More efficient)
Absolute advantage is…..
When one country can use fewer resources to produce a good compared to another country, when a country is more productive compared to another country
Why are there trade agreements?
Trade agreements can reduce agri business firms vulnerability
What made a poor trade agreement?
No rules of reopening, strong rules for boarder closing, negotiations by experts on treat diseases,
What can happen at a border delay?
Who can go bad, just in time delivery systems fail, uncertainty of reliability, suppliers are restricted to supply chain relationships, retailers and would prefer a domestic rather than across the border
What are the major trade agreements in Canada?
The WTO, North American Free Trade Agreement, transpacific partnership and, new India agreement, EU agreement
What will happen in the next few years to Canada’s trade policy?
It is likely to change dramatically, mostly never can change since NAF TA
What are the major Net food exporting areas minus Canada
Tkaczyk Stan, Russia, Ukraine, US, EU, Brazil, Australia
What effect of containers had on globalization?
They allow mass pro docs to cross globalization market and to be transferred to Easily between water and land
Why do we have trade agreements
Keep economy is growing and allow specialization
