BUSN 1101 Chapter Notes - Chapter 3: Foreign Corrupt Practices Act, Foreign Direct Investment, Independent Contractor
31 Aug 2016
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In 2012, the total value of worldwide trade in merchandise and commercial services was. Absolute advantage: condition whereby a company is the only source of a product or is able to make more of a product using the same amount of or fewer resources than other countries. Comparative advantage: condition whereby one nation is able to produce a product at a lower opportunity cost compared to another nation. Opportunity costs: the products that a country must decline to make in order to produce something else. To evaluate the impact of its international trade, a nation looks at two key indicators: balance of trade and balance of payments. Balance of trade: difference between value of a nation"s imports and its exports during a specified period. Trade surplus: when a country sells more products than it buys. Trade deficit: when a country buys more products than it sells.
