ADM 1100 Lecture Notes - Lecture 4: Efficiency Ratio, Business Cycle, General Agreement On Tariffs And Trade
Document Summary
Economics the social science that studies the choices people, companies, governments make when dividing up their scarce resources. Macro economics: deals with the performance, structure, behavior and decision- making of economies (ex. national, regional & global economies) as a whole, rather than individual markets: examples: Government national & provincial policies (ex. interest rates, employment rates, interprovincial trade policies) international trade policy (ex. who to trade with, what to trade) Micro economics: studies the behavior of individual households and firms in making decisions on the allocation of limited resources (ex. capital, assets, price, etc. : examples: Companies are attracted to international business because of the size of the global marketplace. Balance of trade: the difference between a nation"s exports and imports: more exports than imports = positive balance of trade (trade surplus, more imports than exports = negative balance of trade (trade deficit) Exchange rate: value of one country"s currency in terms of the currencies of other.