hw 1 - Jennifer Solomon International business Chapter 2 2....

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Jennifer Solomon International business Chapter 2 2. Both trade in merchandise and services have increased in the past two decades. Exports of merchandise were 13.9 trillion in 2007 which is nearly seven times what they had been in 27 years earlier. Trade in services at 3.3 trillion. Although merchandise has a higher dollar amount service has grown faster since 1980 than has trade in merchandise. Another difference in the past two decades is which places are exporting. The proportion of exports coming from the regions of North America, Latin America, Africa, and the middle east decreased from 1980 while exports from Asia has increased 88 percent. The major trends that have taken place are that countries such as here in the United States look for the cheapest products to buy. They end up buying the products that are imported from such places as China because they can get their raw materials cheaper and labor is so much cheaper. As a result their end product will have cost less money to make so they can sell it for less and still make a profit. If we tried to make some of these items here in the United States we would have to pay for the raw materials along with paying minimum wage for all workers, along with other restrictions such as labor laws. The export growth of individual nations should be a warning to managers that they must be prepared to meet increased competition from exports to their own domestic markets. 8.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

hw 1 - Jennifer Solomon International business Chapter 2 2....

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online