Lecture 4.docx

Lecture 4

Opportunity cost for Japan vs France France Japan Wine 4:1 1:4 Clock 6:5 5:6

Opportunity cost for wine vs clock radio France Japan Wine 4:6 (1:1.5) 1:5 Clock 6:4 (1:0.6) 5:1(1:0.2) With Money: you start with outsides first

Wine Clock

France (EURO)

Japan(YEN)

J

F

J

F

3 2

8 1.6

375 250

1000 200

Stakeholders for McGill (some are more influential than others): - Alumni - Students - Faculty - Local Community - Quebec government - Tariffs - Profs. - Environment - Press  Company has been serving for local community for 50 years: Open for competition, they can lose their business. Economic Rationales:  Fighting Unemployment o Tariff put on a country:  you have to raise prices  trade with someone else  put tariff back on them

 Protecting Infant Industries o Hamilton came up with this.

 Developing Industrial Base  Economic Relationships with other countries o Unfair business practices o Gain fair access (market) o Dumping: selling to another country at a lower price than what you sell in your own business  General population gain  Canada was the first to put dumping