GMS 522 Lecture Notes - Lecture 3: International Monetary Fund, Uruguay Round, Umbrella Organization

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 522
• Professor: Helene Moore

Document Summary

The most efficient producer of a certain product. How to allocate resources to produce certain product. Should produce the product that it"s best at making. What a country should focus production on based on opportunity cost. The more resources used to produce a product, the more likely you should export it. Countries will exchange goods more so when they have similar needs. Countries will trade only if they can pull profits. Theory suggests that countries act as competitors. Dunning"s oli framework: ownership advantages, location advantages, internalization advantages. Search costs (ex: costs associated with funding suitable input suppliers, agents, and distributers) Contracting costs (ex: costs associated with negotiating and drawing up contracts) Monitoring costs (ex: costs associated with monitoring costs) Enforcement costs: (ex: the costs associated with enforcing contracts) General agreement on tariffs and trade (gatt) Sets out rules for non-discrimination, transparent procedures, and settlement of disputes in international trade.