Lecture1_Presentation

Lecture1_Presentation - AEM/ECON 230 International Trade...

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Unformatted text preview: AEM/ECON 230: International Trade and Finance Professor David Lee Dept. of Applied Economics and Managment 441 Warren Hall 2 of Professor David Lee AEM 230 / ECON 230 “Globalization” An economic view − the reduction and elimination of traditional barriers which separate international buyers and sellers: 1. Trade policy barriers: tariffs, quotas, etc. 3 of Professor David Lee AEM 230 / ECON 230 “Globalization” An economic view − the reduction and elimination of traditional barriers which separate international buyers and sellers: 1. Trade policy barriers: tariffs, quotas, etc. 2. Decreasing transportation costs 4 of Professor David Lee AEM 230 / ECON 230 “Globalization” An economic view − the reduction and elimination of traditional barriers which separate international buyers and sellers: 1. Trade policy barriers: tariffs, quotas, etc. 2. Decreasing transportation costs 3. Decreasing transactions costs 5 of Professor David Lee AEM 230 / ECON 230 “Globalization” An economic view − the reduction and elimination of traditional barriers which separate international buyers and sellers: 1. Trade policy barriers: tariffs, quotas, etc. 2. Decreasing transportation costs 3. Decreasing transactions costs 4. Market-determined exchange rates 6 of Professor David Lee AEM 230 / ECON 230 ut globalization is more than just freer trade: Firms serve expanding global market … but experience increased competitiveness and pressure to reduce costs. 7 of Professor David Lee AEM 230 / ECON 230 ut globalization is more than just freer trade: Firms serve expanding global markets…but experience increased competitiveness and pressure to reduce costs. Telecommunications revolution makes it easier to identify, communicate with and produce efficiently for larger global markets…but makes it easier for low-cost competitors to gain entry into tradition domestic and foreign markets 8 of Professor David Lee AEM 230 / ECON 230 ut globalization is more than just freer trade: Firms serve expanding global markets…but experience increased competitiveness and pressure to reduce costs. Telecommunications revolution makes it easier to identify, communicate with and produce efficiently for larger global markets…but makes it easier for low-cost competitors to gain entry into tradition domestic and foreign markets Increasing international specialization means great scope for cost reductions…but also displacement of employees and changes in traditional employment patterns 9 of Professor David Lee AEM 230 / ECON 230 International mergers and acquisitions mean potential for cost reduction and enhanced product quality…but also aggressive competition for many firms used to “captive” domestic markets; also potential market power in influencing prices and availability 10 of Professor David Lee AEM 230 / ECON 230 International mergers and acquisitions mean potential for cost reduction and enhanced product quality…but...
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This note was uploaded on 02/19/2009 for the course AEM 2300 taught by Professor Lee,d.r. during the Fall '06 term at Cornell.

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Lecture1_Presentation - AEM/ECON 230 International Trade...

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