AFM131 Chapter Notes - Chapter 3: Complex Differential Form, North American Free Trade Agreement, Common External Tariff

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Mohsin Bashir

Document Summary

Why trade with other nations: global trade allows a nation to produce what it"s most capable of producing and to buy what it needs from others in a mutually beneficial exchange relationship, no country is completely self-sufficient. In canada, it"s difficult to produce many kinds of fruits and vegetables. Free trade: the movement of goods and services among nations without political or economic barriers. Comparative advantage theory: a country should sell to other countires those products that it produces most effectively and efficiently and buy from other countries those products that it cannot produceas effectively or efficiently. Getting involved in global trade: small businesses contribute between 25-41 percent to canada"s gdp and employ around 7 million people. It"s important to observe and study global markets. Importing goods and services: the canada border services agency deals with importers across the whole range of goods and services that enter canada.