1.a Access To Markets Flashcards
What is merchandise?
All commodities or products (not services) available for sale that imports and exports through a countryAll imports and exports through a country
What is merchandise measured on?
Customs
What are the geographical inequalities of merchandise?
High export - more developed ( EU/Asia)
Low exports ( Africa)
Values in figures of Africa exports
$379 billion
Values in figures of europe and asia exports
Europe ($6301 billion) and Asia ($5703)
Variation in Merchandise exports
Fuel and Oil - UAE and Middle Eastern countries
Agricultural products - EU
How much more does EU make from exports of merchandise in comparison with eastern countries
708 billion in comparison to 33 billion TWENTY TIMES MORE
What are services ?
Tradeable activities which rely on workforce skills and experiences in knowledge rather than processing materials
What country is the largest exporter of services?
EU
How much more is trade of merchandise worth more than trade of services and why?
15,041 billion dollars less than trade of exports
How are the figures for services traded figured out?
They are derived from transactions in the balance of pay statistics.
Who is the largest net importer of services / who is the largest exporter of services?
Importer- Saharan Africa ( through trade with ACs)
Exporters - EU ( mostly through intra - regional trade)
Inequalities in the trade of services ?
AC exporters- EU /Asia .N America/china/Japan
Exports low - Africa
As these contrast in the ability to supply commercial factors
In 2022 how much of world trade is services ?
23%
Factors that cause the inequality in trade of services
- education
- skills of workforce
- govt
- private investment
What is capital?
The result of purchases and sales of real and financial assets across national boarders
What are financial assets / real asssets ?
Real assets —> physical or tangible items
Financial asssets —> intangibles (currency,stocks and bonds)
In what direction does capital flow?
In the opposite to services and merchandise as these are being purchased
What causes capital flows to increase ?
- interconnectivity of global trade (network widening with NEEs)
- Intra firm flows through MNCs
What does FDI do ?
Creates stable and long lasting links between economies + driving force of globalisation
Examples of capital flow around the world
- Large amounts of imports to ASIA AND AFRICA ( MNCs investment)
- Inward FDI to India ( develops ports/airports/highways)
What is FDI ?
A business decision to take a stake in a foreign business to either buy it outright or expand its operations
What is horizontal investment?
Company offers the same type of business in another country . ( US buying a phone chain in china)
What is vertical investment?
A business acquires a complimentary business in another country.
( US manufacturing getting materials needed for manufacturing process)
What is conglomerate investment?
Invests in a business that is unrelated - often in the form of a joint venture
What is inter regional trade?
Flow of international trade among world regions .
Inter regional trade USA —> UK how much of global flows does it account for
- Accounts for 30% of trade flows globally
Whats the name for the inter - regional trade between North america and EU ?
Transatlantic trade and investment partnership TTIP
What are the main exports between UK and USA?
Due to similar forms of manufacturing the exports are similar
machines/ engines/ pumps /vehicles / air craft
What is intra regional trade?
The flow of international trade within one of the major world regions
Intra regional trade within the EU how many members are within this bloc?
- 28 member trading bloc
in 2013 how much was EU trade in merchandise and services combines Billions?
3,777
why does the EU trade bloc have a complex pattern?
Due to high level of intercontectivity of transportnetworks and the ease of financial transactions within the eurozone
Features of the EU trading bloc
- single market economy,
- trade defence policy which protects domestic industries,
- lack of internal tariffs between members
- increasing number of EU MNCs operating within the trading bloc
- large demand from the 520 mil population
Uk food and drink sector in relation to the EU
2014 UK exported 75% of its food & drink products to other EU states- milk to Ireland, wheat to Spain
Economic factors affecting trade?
- physical infrastructure
- transports cost
- cost of production
- technology/ communications
Political factors affecting trade?
- trading blocs
’-trade agreements - tarrifs
- Free trade areas
Social factors affecting trade?
- demographic factors ( age/migration)
- female empowerment
- education levels
Environmental factors affecting trade?
- Land locked
- natural hazards
- deep water ports
- climate
