MGCR 382 Lecture Notes - Lecture 1: Global Value Chain, Absolute Advantage, Comparative Advantage

• School: McGill University
• Department: Management Core
• Course: MGCR 382
• Professor: Jan J Jorgensen, David S.Schumacher

Document Summary

Plc, porters diamond, global value chains, cage . We now change perspective from the first half of the class. Economics exists since the 18th century while management is from this century. Voluntary exchange of goods / services / assets / money between one person / organization and another. Sale of goods / services / to foreign residents. Purchase of goods / services / from foreign residents. Improve relationships with other countries (political dimension) Get new resources that is not available in their countrie. Trade is voluntary, so there need to be gains from trade that induce people to engage in voluntary exchange. They are called classical theories of trade. Some countries are just better at producing certain things . Producing 1 bottle of wine takes 1/2 hours in france and 1 hour in japan. Producing a radio costs 1/3 hours in france and 1/5 hours in japan.