Globalization Flashcards
(12 cards)
What is globalization?
The growing interconnectedness of the world especially with business
What are the three main reasons nations export?
- Have an excesss of goods
- Can sell for higher prices than they can domesticly
- To make money/forigen currency
What are the three main reasons nations import?
- To get something you don’t have domesticly
- Something can be produced more efficently or less expensivly in other countries
- To buy bproducts that are essental
What is trade spelicalization?
Any labor input that incresses production, money invesgted in a buissness
What three things help a country known what they can produce most efficnetly?
Work force
Capital
Natural resources
What is capital?
equippment or technology
What is the opportunity cost?
the amount of good or servie given up in order to produce another good or service
What is comparative advantage?
wichever product has the looest opertunity cost
Efficencey?
Maximum out put within minaum input
What is volume?
Quantity
Supply chain?
a method for manufactures, stores, and buyers to work together
Insourcing
when a coumpany allwos another company to come inside and design and manage their whole supply chain
