application marks Flashcards
example of a trading bloc
NAFTA - trilateral trade between America, Canada and Mexico
What was the largest cargo ship in the world called and how many containers could they hold
CSCL Globle
19,0000
what % of imports move by sea
95%
how does containerisation lead to technical economies of scale
the volume of the container increases at a quicker rate than its surface area meaning that cost of transport falls as the size of the container increases
Why may containerisation not lead to an increase in international trade
the surplus in trade of services was £88.9 billion
Depends more on the transferring from eg communications technology or satellite phone links
Example work of the WTO
Bali Ministerial Declaration reduced bureaucratic barries
2 countries that have joined the WTO and when
China - 2001
Russia - 2012
Example why WTO may not have been successful
Has made low levels of progress since the launch of the Doha round in 2001
Why migt lowering traffis not lead to a higher increase in demand
could be price inelastic eg german cars leading to only a small increase in demand
evidence of derived demand
apple watch launched in 2015 lead to an increase of 90,000 supplier and manufacture jobs
evidence of regulatory capture
Morgan Stanley and JP morgan paying no corporation tax in 2014
example of a countrys comparative advantage
Ireland - butter,cheese
One example where country has benefited less from comparative advantage
Saudi Arabia - oil
During covid - prices went down
Were relying very much on oil
Example of a country with absolute advantage
US - make fridges and shoes taking fewer workers than in mexico
Example of emerging economies
Brazil, Russia, India,China,South Africa
Country with highest exchange rate and how much
Kuwaiti Dinar
1 kuwaiti diinar = 223 indian dollar
A country with one of the highest tarriffs
the bahamas - 17%
Example of how a country prevented dumping
Donald trump setting a quota on washing machines
Example of how a country preserved jobs by reducing imports
Donald trump setting a 17% tariff on all Chinese goods
Example of a trade war and why
The Trump administration has been locked in a trade war with China for more than a year, spurred by its assertion that China steals U.S. trade secrets and unfairly subsidizes its own companies in its drive to overtake the United States in such high-tech industries as artificial intelligence and electric cars.
Why is venuluela in hypeinflation
Nearly 3000% in 2020 due to heavy quantitative easing , raising minimum wage in 2014
one industry the us subsidieses and some facts
farming $19 billion dollar a year in 2014
It paid farmers to make sure supply did not exceed demand. The government subsidized farmers to keep croplands idle in order to prevent overproduction. It also bought excess crops. It then either stored them or gave them away to feed low-income people throughout the world
Why may the US subsidy to farming be unsuccessful
15% was wasteful
US trade defecit in 2014
$864 billion
How much money does the US owe China
$1.2 trillion
Advantage of competitive depreciation
china and thailand
then indonesia
exchange rate fixed to the dollar
baharani dollar
Country with managed exchange rate
burundi
country with primary product dependency
zambia - 84% of total exports was copper in 2014
country with a foreign currency gap
venuzuela - due to hyperinflation
prices of goods rising much faster than other countries , less foreign currency coming in
