Trade & Globalization

Trade & Globalization

1. Specialisation

   • Comparative advantage
     • Effectively and efficiently
       • cost benefits
     • Country focuses on producing what they good at
       • High quality goods
   • Increase employment
     • Promote economic growth
   • Over specialisation
     • world demand fall
       • workers at risk of losing jobs
     • Cheaper imports may destroy their market.
       • Reduced economic diversity

2. Sales & Profits

   • Grow Your Business
     • Increase sales
       • Better margins
   • Lower opportunity cost
     • Increase profit
     • Lower
   • Exchange rate risks
     • Exchange rate fluctuation
       • Effect the asset and liability
         • Lose profits

3. Stimulate the economy

   • More taxes collect by government
     • Increase the standard of living
   • More income and jobs
     • More competition
   • Inflation
     • Higher interest rate
     • Weaker dollor