COMM 1010 Lecture Notes - Lecture 5: Dumping (Pricing Policy), New Trade Theory, Asteroid Family

• School: Dalhousie University
• Department: Commerce
• Course: COMM 1010
• Professor: McLarney

Document Summary

Chapter 5 the global context of business. Globalization means that companies manufactures finance and market worldwide /the process by which the world economy is becoming a single interdependent system. Canada represents a potential market of only 31 million customers. There are over 6 billion potential customers globally. Gold and silver are the currency of trad. Theory says you should have a trad surplus: maximize exports through subsidies, minimize imports through tariffs and quotas. Capacity of one country to produce more of a product with the same amount of input than another country. Produce only goods where you are most efficient, trade for those where you are not efficient: trade between countries, therefore, beneficial. Assure, there is an absolute advantage balance among nations. Efficiency of resource utilization leads to more productivity. Should import even if country is more efficient in the product"s production than country from which it is buying: look to see how much more efficient.