Unformatted text preview: MGTA03 – Intro to Management
"Understanding International Business"
International Trade - What It Is
International Trade - Why It Exists
Importance of Trade to Canada.
Canada is "Open” Economy
Competitive Advantage International Business - Defined
Business activities that involve exchanges
across national boundaries
Canada is an "Open Economy"
Canada: “open” to trade, imports, exports,
flow of goods and services across border
Because: it raises living standards
Because: Canada is a Major Player
7th largest exporter, 7th largest importer
“G8” Countries: our biggest customers, suppliers
2 Imports from
6 International trade = approx. 30% of Cdn GDP Canada and NAFTA
North America Free Trade Agreement
Treaty involving: Canada, USA and Mexico
Includes c. 450 million people
Must have no trade barriers or protection
Thus, promotes trade between the three Why do we Import and Export?
No country can make everything
quickly, cheaply and well
Some countries better equipped than
other countries to make particular goods
or Why do we Import and Export?
It's faster, cheaper, and easier to make
some things here
It's faster, cheaper, and easier buy other
things from elsewhere
Some things you can make, and other
things you can't.
things Competitive Advantage
TWO sources of competitive advantage:
Absolute Advantage: things we make
and sell, because others CAN’T
Comparative Advantage: Things we
make and sell, because we can and
CHOOSE Absolute Advantage
Nation's ability to produce goods and
services more cheaply or better than in
any other country.
any Comparative Advantage
a nation's ability to make or produce some
specific products more cheaply or better
than other products .
So, we concentrate on the former, and
ignore the latter.
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This note was uploaded on 06/18/2011 for the course MGT a03 taught by Professor Bovaird during the Spring '11 term at University of Toronto.
- Spring '11