current pattern of international trade Flashcards
what is inter regional trade
flow of international trade among major world regions
what agreement was made between the USA and EU
trans Atlantic trade agreement - worlds largest trading partners - value of merchandise, services and capital
in 2014 how much of global trade did the trans Atlantic trade account for
30% of global trade flows
what does the agreement create
contributes to growth and employment on both sides of the Atlantic
what is the main export
US to UK
aircraft/spacecraft
$9.1 billion
what is the main export
UK to US
machines, engines, pumps
$9.3 billion
what is intra regional trade
flow of international trade within a region
why is trade in the EU complex
due to outcome of changing patterns and trends of trade flows in many diverse products - between the 28 member states
what did UK rely on EU for
75% of £12.8 billion food and non alcoholic exports
what is merchandise
inward and outward flow of physical goods
who dominates the merchandise trade
Europe - $6430 billion
Asia
what is a big contributor to merchandise trade
comparative advantage + cheap labour costs
what is capital trade
purchases and sales of financial assets across national borders
why is capital trade complex
due to many diverse elements - increase in MNC’s + FDI
mainly occur between AC’s
Economic factors of trade (6)
physical infrastructure - transport
technology - communications
transport costs
cost of production
FDI
Speed of border formalities
social components of trade (4)
demographic factors - age, migration, structure
stage in demographic transition model
female rights
level of education
environmental components of trade (4)
distribution of natural resources - minerals, oil
natural hazards
deep water ports
climate, soils, water scarcity - agriculture - food production
political components of trade
supranational organisations
regional trading blocs - ECOWAS
gov policies
tariffs / non tariff barriers
free trade
corruption
in 2013 what was the total world exports of commercial services
$2250 billion
changes to service trade
growing rapidly
why is the global pattern becoming increased complex
due to continued growth of outsourcing and increasing connectivity of supply chains
who is the largest net exporter of services
Europe - mostly intra regional
why is there an uneven distribution of trade
due to a lack of skilled workers in developing world
