BUS 082 Lecture Notes - Lecture 3: Multinational Corporation, Protectionism, Comparative Advantage
5 Aug 2020
School
Department
Course
Professor
Document Summary
Ethics: beliefs about what is right and wrong, or good and bad, in actions that affect others and cause negative externalities. Growth of global trade and trading partners. Top five export partners: canada, mexico, china, japan, uk. Top five import partners: china, canada, mexico, japan, germany. Even if it were self-sufficient, other countries would want its imports. Countries differ in their relative wealth of factors of production. Comparative advantage: do what you do best and buy the rest . A monopoly exists when a country is the only source of an item, producer of an item, or the most efficient producer of an item . Buy cheaper products through imports free trade inspires innovation and competition. Outsourcing, jobs are lost and wages are lowered. Can become too dependent on trade (oil) Trade protection: use of govt. regulation to limit import of goods and services tariffs: limiting imports through trade tax. Quotas: limit on quantity of imports for certain product.
