MGTA01H3 Chapter Notes - Chapter 11: Autarky, Comparative Advantage, Absolute Advantage
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MGTA01H3 Full Course Notes
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Chapter 11: canadian business interacts with the world. International trade: business transactions that involve products or services crossing international borders (i. e. the maker or supplier is in one country, the purchaser is in another) Open economies and closed economies: open economy: a country that is willing to buy from, and sell to, sellers and buyers in other countries. An economy that is open to the idea of international trade closed economy: a country that refuses to trade with the rest of the world, and attempts to be self-sufficient (i. e. north korea) Exports: exports: products that canadian businesses make and sell to other countries. Imports: imports: products that canadian consumers buy from businesses in other countries. Two examples of absolute advantages: canada has the space, the climate, and the soil conditions to plant and harvest many millions of acres of wheat. Switzerland and tiny barbados do not: canadian has billions of barrels of oil beneath its soil.
