RSM100Y1 Lecture Notes - Lecture 6: Nearshoring, Offshoring, North American Free Trade Agreement
Document Summary
They don"t have enough money to pay up the interest of the debts right now. If they can"t pay up the bonds owned to china and japan, the next bond they want to borrow will have a much higher interest rate. Conflict of interests between each politician"s salary and the good of the government. Exchange relationship between society and business exists: business provides wealth creation, and society allows business to grow and regulates them. Canada"s comparative advantage in softwood lumber creates wealth for. C) builders pass on cost savings to consumers. This creates wealth for americans: savings are passive wealth creation; savings then are spent on other areas. The nafta led to a rapid increase in the amount of manufacturing in. B) offshoring: to manufacture goods at another country for less costs. Dumping: to sell a certain product at a lower price than its costs in order to drive away other competitors for future monopoly.
