Fin 376- ch. 1 - Ch.1 - Trade: higher standard of living,...

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Ch.1 - Trade: higher standard of living, helps us grow at a faster rate, efficiency, competitive, economies of scale, gives us variety; fusion of knowledge, specialization, expansion of R&D -Absolute advantage- a country is more efficient at producing a given good Comparative advantage- a country is relatively more efficient at producing a given good because it has a lower opportunity cost - Allows to use more goods efficiently - Increase in overall output; point is to consume, not produce -Terms of trade- ration at which goods will be exchanged -Globalization destroys culture, bad for environment, takes away jobs etc. - May not be the economics of trade, but the social aspect of trade - Multinationals pay more than local companies, cited by evidence - Outsourcing actually creates more jobs- article; complementary, expanded scope and scale -People want the government to do something Foreign exchange market- the physical and institutional environment in which currencies are traded - Exists because of the coexistence between the internationalism of trade and nationalism
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Fin 376- ch. 1 - Ch.1 - Trade: higher standard of living,...

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