Intro to Business 9:23:10

Intro to Business 9:23:10 - can supply other good, compared...

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Intro to Business 9/23/10 Competing in Global Markets Why Nations Trade -Boosts economic growth -Expands market -More efficient production systems -Less reliance on economies of home nations International Sources of Factors of Production -Decisions to operate abroad depend upon availability, price, and quality of: o Labor o Natural resources o Capital o Entrepreneurship -Companies can spread risk throughout nations Size of the International Marketplace -As developing nations expand into the global marketplace, opportunities grow -Many developing countries have posted high growth rates of annual GDP Absolute advantage- Country can maintain a monopoly or produce at a lower cost than any competitor Comparative advantage- Country can supply a product more efficiently and at lower cost than it
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Unformatted text preview: can supply other good, compared with other countries Balance of trade: difference between a nations imports and exports Balance of payments: Overall flow of money into or out of a country Balance of payments surplus = more money into country than out Exchange rates-domestic economic and political conditions-central bank intervention-balance of payments position-speculation over future currency values Value fluctuate or float depending on supply and demand National governments can deliberately influence exchange rates Business transactions are usually conducted in currency of the region where they happen...
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Intro to Business 9:23:10 - can supply other good, compared...

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