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Importance of Global Experience
Many companies value employees with international experience
Importing
buy product from outside
Exporting
sell product to outside
global trade types
importing and exporting
global trade
helps in selling what countries are good in and buying what they need.
US
largest importer
china
largest exporter
Why Trade with Other countries?
Not all countries can make the product
Free Trade
shipping products without political barriers.
ADV of free trade
Access to a global market of 7.7 billion customers.
Increased productivity from focusing on comparative advantages.
Keeps prices down, controlling inflation.
Encourages innovation and competitive business practices.
Provides access to foreign investments, keeping interest rates low.
DIS of free trade
Domestic job losses due to increased imports or shifts to low-wage markets.
Potential pay cuts for workers due to employer threats of relocation.
Loss of service and white-collar jobs from overseas operations.
Domestic companies may lose comparative advantages to global competitors.
Comparative Advantage theory
comparing two countries on who does what better using less material
Absolute Advantage
country can produce a product better than others
Note 
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