BSM 600 Chapter Notes - Chapter 17: General Agreement On Tariffs And Trade, International Monetary Fund, Switching Barriers
17 May 2016
School
Department
Course
Professor
Document Summary
Growing number of people with cellphones = indicator of economic growth: north america cellphones followed landlines, india, indonesia, china not bothering with traditional phone service, but going straight to cellphones. Emerging into global trade because huge growing new markets, better access to factors of production, reduced risk, inflow of new ideas. Access of factors to production: examples: labor cost differences between countries, resource availability in different places, balances resource imbalances among countries. Reduced risk: reduces dependence on one economy, but economic meltdown in one place can impact many others. Inflow of innovation: invaluable source of new ideas, experiencing budding trends in one market gives them an upper hand in other markets. Outsourcing labor to exploit cheap work: loss of industries. Entire industries may move to where costs are cheaper: increase in foreign ownership. Absolute advantage when a country can produce more of a product than other nations using the same amount of resources.
