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Unformatted text preview: 9-17-07: Globalization of Markets•Government steps in and protects domestic market•GlobalizationoAnother relative pressure in which contemporary business must operateEconomic environmentRole of governmentGlobalizationCSRoHas positive and negative consequences1.Global trade is $8 trilliona.US is largest exporterb.Imports are larger -> trade deficitc.Who do we trade with?i.15 countries represent 74% of US trade1.Import: Canada, China, Mexico, Japan, Germany2.Export: Canada, Mexico, Japan, China, UK2.Nations engage in global tradea.No nation can produce all it wants and needs, at least not in a cost-effective mannerb.Even if a country were self-sufficient, other who countries would want its importsc.Countries differ in their relative “wealth” of factors and production•Comparative advantageoDo what you do best, and buy the restoCountry specializes in products that it can supply more efficiently at a lower cost that it produce other itemsCorn in US•Absolute Advantage...
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- International Trade, Global Trade