Global patterns of, and inequalities in, trade flows. Flashcards
What are the key characteristics of global trade flows?
exchange of goods,
services,
capital between countries.
How is trade concentrated in specific regions?
Trade is dominated by developed economies (e.g., the USA, EU, and China) that export high-value goods and services, while developing countries often export low-value primary commodities.
What are the main inequalities in global trade flows?
trade imbalances, exploitation of raw materials in developing nations, unfavorable terms of trade, limited access to global markets, and the dominance of wealthy nations and transnational corporations (TNCs).
What is the “core-periphery model” in trade?
The core-periphery model highlights how developed “core” countries dominate global trade, while peripheral (developing) countries are dependent on exporting low-value goods and importing high-value products, perpetuating inequality.
How do trade blocs influence global trade patterns?
Trade blocs like the EU, NAFTA, and ASEAN encourage trade within member countries but can exclude non-members, reinforcing inequalities by creating barriers for developing nations to access these markets.
What are the effects of colonial history on global trade patterns?
Former colonies often rely on exporting raw materials and importing manufactured goods, creating dependency on developed nations and maintaining unequal trade relationships.
How does the “North-South divide” relate to trade inequalities?
The North-South divide reflects the disparity between the industrialized, wealthy Global North and the poorer Global South. The North dominates trade flows, while the South often faces exploitation and economic dependency.
What role do transnational corporations (TNCs) play in trade flows?
TNCs dominate global trade by controlling production, supply chains, and distribution. They often exploit cheap labor and raw materials in developing nations, concentrating profits in developed economies.
What are trade barriers, and how do they affect global trade?
Trade barriers include tariffs, quotas, and non-tariff measures like standards and subsidies. These often disadvantage developing nations, restricting their access to global markets.
What are the impacts of trade inequalities on developing countries?
Trade inequalities hinder industrialization, create dependency on low-value exports, expose economies to market volatility, and limit economic growth in developing nations.
How does globalization affect global trade flows?
Globalization increases trade by integrating markets and reducing barriers, but it can exacerbate inequalities by favoring nations with advanced infrastructure, technology, and capital.
What strategies can reduce trade inequalities?
Reducing trade inequalities requires:
Fair trade initiatives
Diversification of exports in developing nations
Investments in infrastructure and education
Greater access to global markets for developing countries
What is “fair trade,” and how does it address inequalities?
Fair trade ensures better prices, working conditions, and fair terms for producers in developing countries. It seeks to reduce inequalities by promoting sustainable production and direct market access.
What is the significance of trade surpluses and deficits?
Trade surplus: A country exports more than it imports, boosting economic stability.
Trade deficit: A country imports more than it exports, leading to economic dependency and debt.
