Business Econoics Chapt 3-10

Business Econoics Chapt 3-10 - Ronald Francois 10/20/2008...

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

View Full Document Right Arrow Icon
Ronald Francois 10/20/2008 Chapt 3 Pg 65 1) About 90% of the world population (including 60 % in China and India alone) is outside of the borders and make up the global market, so the potential customer base is vast. 2) The Comparative advantage theory states that a country should sell to other countries those products that it produces most effectively and efficiently, and buy from other countries those products it cannot produce as effectively or efficiently. Ex: US trade software and engineering services with China hardware and database modems. 3) The Balance of trade is the total value of a nation’s exports compared to its imports measured over a particular period. And the balance of payments is the difference between money coming into a country (from exports and money leaving a country from other factors such as tourism, foreign aid, military expenditures, and foreign investments. 4) Dumping is the practice of selling products in a foreign country at lower prices that those charged in the producing country. Pg 71
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.

This note was uploaded on 02/12/2012 for the course ECONOMICS 101 taught by Professor Obiene during the Spring '11 term at Essex County College.

Page1 / 2

Business Econoics Chapt 3-10 - Ronald Francois 10/20/2008...

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