✅3.2.1.3 - International Trade and Access to Markets Flashcards
What are import quotas?
A physical limit on the quantity of goods that can be imported into a country
What are subsidies?
Grants or allowances usually awarded to domestic producers to reduce their costs and make them more competitive against imports
What are voluntary export restraints?
A diplomatic strategy offered by the exporting country to appease the importing country and deter it from opposing trade barriers
What are embargoes?
Impose the partial or complete prohibition of commerce and trade within a particular country. Put into practice for political rather than commercial reasons.
What are the main barriers to trade?
import quotas, subsidies, voluntary export restraints and embargoes.
What are trade restrictions?
Other import restrictions may be based on technical or regulatory obstacles such as the quality standards of goods being imported or how they are produced
What is an example of an EU trade restriction?
The import of goods knowingly produced using child labour
What is FDI?
Foreign Direct Investment, the amount of capital invested in foreign countries
What are the main global causes of FDI?
Natural resources and size of a country’s population/market
By how much has FDI risen in last 20 years
$400 billion to $1.5 trillion
What is a transition economy?
One that is changing from a centrally planned economy to one driven by market forces
What are some of the top FDI giving countries?
US, UK, Germany, France, Switzerland, Hong Kong, Belgium, Japan, Canada…
What are some of the top FDI receiving countries?
US, Hong Kong, China, UK, Germany, Belgium, Switzerland, France, Canada, Singapore
What are some examples of trade relationships?
TTP, TTIP, G7, G20, MERCOSUR, Pacific Alliance
Which countries make up the G7?
Canada, France, Germany, Italy, Japan, US, UK
What must the G7 countries have?
A high net national wealth and a high HDI
Why was the G20 set up?
To give a voice to major developing countries in 1999, who felt that the WTO was not fully serving their needs
What are some of the countries involved in the G20?
Argentina, Australia, Brazil, China, India, Indonesia, Mexico, Russia, Saudi Arabia, Turkey etc as well as G7 countries and the EU
How is China investing in Africa?
In old copper mines in Zambia and Botswana needed to support the ‘industrial explosion’ in China
How has China’s investment supported African countries?
They have been able to develop infrastructure as well as healthcare and education
What does China rely on African markets for?
A steady flow of natural resources to sustain manufacturing
What does China export to Africa?
Cheap manufactured goods, FDI, much needed infrastructure and loans of billions of dollars
How much of China’s FDI is distributed in Africa?
50%
How are Chinese Infrastructure programs exploiting Africa?
They are carried out by Chinese workers instead of giving local companies and citizens a vital opportunity to grown in experience and capital. They bring huge profits to Chinese companies
How has China compromised human rights in Africa?
In 2011, Human Rights Watch released a scathing review of treatment of Zambian workers in Chinese owned copper mines, with unsafe conditions, exploitative hours and threats to those who posed complaints
What have Chinese infrastructure programs created?
Roads, bridges, railways, schools and hospitals
How is China benefiting politically from Africa?
It is gaining power as Africa carries great diplomatic weight, shifting China’s diplomatic influence away frm the US
How has China demonstrated its political power in Africa?
It built its first ever overseas military base on the coast of Djibouti, less than 10 miles away from the US AFRICOM, giving access to the Red Sea and Indian Ocean
What is SDT?
Special and differential treatment
Why were SDTs set up?
To ensure that protectionist policies wouldn’t exclude many developing countries form trading freely with more developed nations due to tariffs and quota barriers
What were the aims of introducing SDTs?
Tackle the structural handicaps that characterise LDCs
Engage in world trade on a more advantageous level
Promote faster income growth and development
What are LDCs?
Least Developed Countries, a category created by the UN General Assembly
