BUSED 101 Chapter Notes - Chapter 3: Protectionism, Franchising, North American Free Trade Agreement
7 Oct 2016
School
Department
Course
Professor
Document Summary
Companies look to outsource their production because the labor is just as qualified as the us market but are willing to work for one fifth of the price. Global trade reduces the dependence on one economy, lower the economic risk for multinational firms. As national economies continue to integrate, an economic meltdown in one part of the world can have far-reaching impacts. International trade offers companies new sources for ideas. When a country produces more of good, it must produce less of another good. The value of the second best choice, the value the country is giving up represents opportunity cost. Barter opportunities tend to increase during economic downturns. The cost is high but companies have the most control over their companies in a given country. Countries with the highest barriers have the least competition. Population, per capita income, economic growth rate, currency exchange rate, stage of economic development, infrastructure.
