RSM100Y1 Chapter Notes - Chapter 4: World Trade Organization, Customs Union, General Agreement On Tariffs And Trade
Document Summary
Exports: domestically produced goods and services sold in other countries. Imports: foreign goods and services purchased by domestic customers. When their home markets mature and sales slow, companies in every industry know the importance of expanding business to other countries. International trade is vital to a nation and its businesses. Trading with other countries increases economic growth in two ways: by providing a new market for products, by providing access to needed resources. Companies can expand their markets, seek growth opportunities in other nations, and make their production and distribution systems more efficient. They can also reduce their dependence on the economies of their home nations. Business decisions to operate abroad depend on the basic factors of production in the other country: the availability, price, and quality of labor, natural resources, capital, and entrepreneurship. Many global computer software and hardware firms have set up operations in india.
