GMS 724 Chapter Notes - Chapter 7: Comparative Advantage, Free Trade, Intercolumniation

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 724
• Professor: Lori Anne Heckbert

Document Summary

World trade organization (wto): a voluntary organization through other member nation trade without discrimination . There are time limits on all stages of deliberations, and the wto"s rulings are binding: critics say that the wto"s efforts are undermining global diversity and benefitting the rich at the expense of the poor. Regional trade agreements (rtas): going beyond the bilateral approach: as of may 2011, there were 209 rtas in force, eu, efta, nafta, mercosur, asean, afta, comesa. Common market: a form of regional economic integration in which countries abolish internal tariffs, use a common external tariff, and abolish restrictions on factor mobility. Dynamic effects: the overall growth in the market and the impact on a company caused by expanding production and by the company"s ability to achieve greater economies of scale. Economies of scale: the lowering of cost per unit as output increases because of allocation of fixed costs over more units produced. European commission (provides political leadership and direction)