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Chapter 4- The global business context - Coggle Diagram
Chapter 4- The global business context
Difference between Trade Deficit and Trade Surplus
Trade Deficit
it is a situation where the home country gets products and services from other foreign countries more than selling products and services from home country to other foreign countries
Trade Surplus
this is where the home country sells out the products and services to other foreign countries more that buying products from other countries
North American Free Trade Agreement (NAFTA)
elimination of tariffs which is tax and trade barries among the US, Canada and Mexico
they can trade easily without worrying about other stuff
European Union (EU)
consists of a group of countries that came together to act as one economy unit
Association Of Southeast Asian Nations (ASEAN)
it is a organisation for economic, political, social and cultural coorparation among the Southeast Asian Nations
it can facilitates trading trhough the regions
General Agreement on Tariffs and Trade
(GATT)
it can reduce the trading barries to international trade like reducing the tariifs
Three form of competitve advantage
Absolute Advantage
It is the ability of a country where they can produce a product that can be either cheaper or higher quality than the other country can.
Comparitive advantage
it is where a country can produce the products more efficienty compare to othe country
National competitive advantage
It can be started from the combination of factor conditions, demand conditions, related and supporting industries, and firm strategies, structures and rivalries
Sudsidy
It is payment given by the goverment to domestic businesses to help them to compete with other foreign countries
Malaysia's Wage Subsidy Programme
it is a financial assistance that would be paid to each employees
to support the ones that got affected because of covid-19