3.2.1.3 International trade and access to markets Flashcards
Define the theory of comparitive advantage
That countries should specialise in providing goods and services that they excel at producing and trade for what they are not.
Which area provides an example of comparitive advantage
Tiger countries (Taiwan, Singapore, South Korea and Hong Kong)
What are the trends in the pattern of international trade
- G7 countries account for almost 50% of international trade
- this is now being challenged by emerging economies with China accounting for the fastest growth
- trans pacific trade is growing much faster than trans atlantic
What was the total value of world trade in 2013
$19 trillion
What was the total value of services in 2013
$5 trillion
What was the total value of services in 2022
$7 trillion
What was the total value of trade in 2022
$32 trillion
How much FDI flows into countries each year
Just under $1 trillion
Name two pull factors of an area for FDI
- size of market
- natural resources
Where was the largest recipient of FDI in 2011
USA ($258bn)
Define transnational corporations (TNCs)
Companies operating in at least two different countries
Why would TNCs operate in multiple countries
- to escape trade tariffs/ easily access other markets
- find the lowest cost of production
- reach foreign markets
How is Apple spatially organised
- Main headquarters in Silicon Valley
- European headquarters in Cork, Ireland
- Assembly in in Shenzhen, China
Why did Apple move to Cork
- corporation tax is 9% lower than European average
- access to skilled, English speaking workers
How is Apple beneficial to Cork
- it is the largest employer in the area (4000 workers)
- attracted a highly skilled, highly paid workforce
