Explain How A Macroeconomic Event That Would Affect Firms.

1. Explain the difference between absolute advantage and comparative advantage. Which is more important in determining trade between individuals or countries? Is it absolute advantage or comparative advantage? Why?

In today's marketing era in order to remain in business the organization has to adjust to change in society. The businesses who survive are the ones who can adapt and stay caught up with society's constant demand of new, better and faster mindsets. Coupled with a business being able to think smart and fast, knowing that there is constant change and being able to not only be on the same page but always a step

Another political factor which affects a business is the enhancing of the skills of the working population. This means the education of the youngster of the UK, the training of the working population and research. The government can affect this by the spending it does on the education system and apprenticeships. This affects Wal-Mart because as the UK economy recovery there is an increase in the demand of skilled workers. Wal-Mart needs skill workers for the finance,

9d) False. If trade is good for a country it is not good for everyone in the country. It makes some individuals worse off through imports as it makes the country as a whole better off.

There has been a dual view of trade since the time of the ancient Greeks. The two sides of these philosophers views are the recognition of the benefits of international exchange, but that there is concern that certain domestic industries would be harmed by foreign

However, it was apparent to economists that nations with similar resource endowments exchanged similar products with each other. Economists felt that trade explained solely by comparative advantage was an incomplete analysis of international trade. Furthermore, since the classical trade theory was unable to explain intraindustry trade, economists decided to expand on the classical trade theory by creating a new theory of trade (Carbaugh, 2011). The new theory states that economies of scale provide incentive for a country to specialize in a particular product (Carbaugh, 2011). Furthermore, based on economies of scale, nations with similar factor endowments will trade with each other as sometimes it is beneficial (Carbaugh, 2011). Arguments stemming from this new trade theory puts the economic case for free trade in doubt.

These factors have major impacts on how businesses operate and make decisions. For example, interest rates affect a firm's cost of capital and therefore to what extent a business grows and expands. Exchange rates affect the costs of exporting goods and the supply and price of imported goods in an economy

The Ricardian trade model is a simple yet powerful theory that refutes common fallacies about the causations of trade flows. It illustrates that, instead of absolute advantage, it is comparative advantage that brings forth the gains from trade. Comparative advantage refers to the ability to produce a product at a lower opportunity cost than another. This ability is the result of

What observations do you make about how export and import trade vary with region of the world?

This paper presents an analysis of the most recent and important economic events and relates them to the major economic principles and theories. The economic events and issues discussed in the paper include global financial crisis, tax avoidance, expenditures on national defense, rise in oil and gas prices, rise in the level of unemployment, and IT investments. These events and issues have been discussed in the light of various economic principles like supply and demand, elasticity and production costs, market structures, labor market, government intervention, international markets, and market efficiency or failure.

Explain for each event whether it changes short-run aggregate supply, long-run aggregate supply, aggregate demand, or some combination of them.

In this assignment, the author will analyze, and identify differences between the basic and base concept of international trade theories. The author will examine and critically assess the concept of international trade. This paper agrees with the economist that international trade is the interdependence of nations in terms of trade, cultural diffusion, and economic interdependency. International business trade theories are basically different theories with their concept of trade how they explain international trade. The concept of majority of economist believe that, trade is about exchanging goods and services between two people or countries within the world. People do trade because they believe that, from the exchange of goods and service, both can benefit from each other resources. They need the goods and services which they are exchanged. Though at the surface, this may sound very simple, there is a great deal of theory, policy, and business strategy that constitutes international trade. The author will talk about the different trade theories that have developed over the past century and which are mine. Most applicable in today 's business world. In addition, the author will explore the issues which impact international trade and how businesses and governments use these issues to their respective benefits to promote their international trade.

a. Explain how the theory of comparative advantage relates to the need for international business.

There are many factors in the macro-environment that will affect the decisions of any business. Tax changes, new legislation, trade barriers,

International macroeconomics is the study of how nations cooperate through trade of goods and services, through movements of money and by investment based on the idea that resources are less transportable internationally than goods. During the semester, we learned that a primary motivation behind a nation’s participation in international trade is the belief that resources are not circulated equally among all trading nations. International trade is the foundation upon which American prosperity resides. Free trade policies have produced a level of competition in today 's open market that stimulates recurrent improvement leading to superior products, better-paying jobs, new markets, increased savings and investment, and an inordinate range of consumption choices. Free trade allows added products and services to make it to American buyers at reduced prices, thereby significantly raising the standard of living. The benefits of international trade are numerous as evident in the positive effects illustrated by the growth of the U.S. economy including job growth all of which offset its challenges involving fair labor standards and apprehensions about the environment.