Flows of Products Flashcards
how is the flow of products facilitated?
by the reduction of the costs of trade including transaction costs, tariffs, transport and time
what is the WTO? and how does it help?
it is the world trade organisation and promotes efficient global trade
what is containerisation?
it is the system of standard 8ft x 8ft x 20ft steel boxes used to transport goods around the world
what is protectionism?
it is the deliberate policy of governments to impose restrictions on the trade of goods and services with other countries
what are tariffs?
these are the taxes placed on imported goods with the intention of making them more expensive then home produced goods, this is a type of protectionism
what are the three transaction costs?
search and information, bargaining and decision, and policing and enforcement
what are the search and information costs for?
costs incurred identifying possibilities for mutual gains, identification of funding source and cost of gathering information
what are the bargaining and decision costs for?
with negotiating an agreement, time spent in meetings and time spent in verbal communications
what are the policing and enforcement costs for?
making sure all stick to the agreement, employment of an external monitor and time and effort spent monitoring
where is the largest flow of trade?
it is between europe and asia with 8.8% of overall global trade and then north america and asia with 7.8%
how has international trade changed?
in 1990 the UK imported £200 billion of manufactured goods and £550 billion in 2008
