International Trade and Foreign Direct Investment

Canada’s trade balance would have been a positive number indicating that more exports than imports were made.

2. The balance of trade is the point where the difference between exports and imports is favorable for the country. When the country imports more than it exports, it results in a trade deficit and when the country exports more than it imports, the country runs into a trade surplus. The balance of trade for a countries economy is a very fine balance. The economic condition can change and a deficit or surplus may be an ideal situation.

Another issue is export. What proportion of the nation's output that is potentially exportable is in fact exported? One way to address this more narrow question is to begin with the domestic output of the goods-producing sectors of the economy, as measured by the value of final exports of goods, plus change in goods inventories,

______ 13) Dependence in the world economy and the consequent need to produce unprocessed goods cheaply led to the development of __________ labor systems.

Which of these forces and factors are the most important to the corporation and to the industries in which it competes at the present time? Which will be important in the future?

balance of trade Balance of trade is a concept that makes a country powerful. The theory of mercantilism states that a country becomes powerful

The U.S main trade allies are Canada, Mexico, China, Japan, Germany, South Korea, and France combing for a total of 180 billion dollars earned. But not only do we earn money by exporting, we spend money importing the U.S spent 388 billion dollars on imported oil. “We aren't addicted to oil, but our cars are”.James Woolsey..On other products such as forest products, cars, food, and footwear we spend about 124 billion dollars from china which is the most from a country. In 2013, the total U.S. trade deficit was $476.692 billion. This is because the imports of $2.76 trillion exceed its exports of $2.28 trillion (Amadeo, Kimberly). This also shows the economy is strengthening, because of the deficit is lower than in 2012, when it was $537.6 billion. Another big cause to the trade deficit is consumer products. The largest products are drugs, consumer electronics, clothing, household goods, and furniture. Vehicle and mechanical products are another category where the U.S. ran a trade deficit in 2013. They imported $294 billion worth of cars, trucks and auto parts, while only exporting $146 billion, causing a huge deficit of $148 billion (Amadeo,

15. Which of these countries is considered as one of the World 's most successful exporting nation?

Exports and imports are what encompass international trade balance. When there are more exports over imports a trade surplus happens and when there are more imports over exports a trade deficit happens. A country will acquire large quantities of foreign assets when it runs in a trade surplus so it can lend internationally to other countries. A country sells of its assets to other countries and becomes a big debtor nation when it runs on a trade deficit. A

7. Which of the following must be true if a firm is experiencing economies of scale?

Some of the countries with surplus commodities may dumb them on international markets at a low price. Under such conditions, some of the efficient industries can might find difficulties in competing for long period. Furthermore, countries whose economies are mostly rural will face unfavourable terms of trade. For example, ration of export prices to import prices. Which means that their export income is more smaller than their import payments the make for high value added imports, as it leads to subsequently large foreign debt levels.

Columbia Encyclopedia, (1993) defined dumping as the selling of goods at less than normal price, usually as exports in international trade. It may be done by a producer, a group of producers, or a nation. However, dumping is usually done to drive competitors off the market and secure a monopoly, and/or to hinder foreign competition. Nations, in an effort to counterbalance international dumping, often resorted to flexible tariffs. International trade through acute competition from foreign producers often leads to dumping infractions of law. A policy regarding dumping, depends on its effectiveness in maintaining separate domestic and foreign

C. Given the nature and demands of technology cycles and innovation streams, identify the two

14. The value of goods imported into France exceeds the value of French exports. This indicates that France:

The Leontief Paradox states that United States imports embodied a higher ratio of capital to labor than U.S. exports. It is the concept that countries with a great deal of capital available import capital-intensive commodities and export labor-intensive commodities. This contradicts what one would expect: countries export according to their competitive advantages