Week 4 Slides Flashcards
Why do nations trade
Economic growth
Expands market
Efficient Production System
What are exports
Domestically produced goods/services sold in other countries
What are imports
Foreign goods/services bought by domestic customers
What factors are company’s exposed to when going global
Social/Culture practices
Economic/Political environments
Legal Restrictions
What are the international sources of factors of production
Labour
Natural resources
Capital
Entrepreneurship
What is an absolute advantage
A country that can produce the product at a lower cost than any other country
what is a comparative advantage
A nation that can supply products fast and at a lower cost compared to other countries
What is balance of trade
Difference between nations exports and imports
What is balance of payments
The overall money flowing in or out of a country
What is balance of payment surplus
More money into a country vs out
What is balance of payment deficit
More money out vs in
What is a economic infrastructure
Basic System of country’s communication, transportation, and facilties
What are the 2 types of trade restrictions
Tarrifs
Nontariff Barriers
What are tarrifs
Taxes/subcharges on foreign products
Provide income for government
What are exmaples of Nontariff barriers
Quota
Dumping
Embargo
Exchange control
