Globalisation - Flows (Goods) Flashcards
factor of flow of goods increased by what in the period 1980 to 2014
10
what was a key change in trade of goods relationships between the years 1980 and 2014
China increases trade with all major markets
Trade increases between east and west europe
what is INTEROPERABILITY
the ability of groups to cooperate with each other
example of agreements among countries to facilitate flows
(eliminating diverse technologies to coordinate and integrate supply chains)
USB C Charger apple
which typically has grown quicker:
growth in trade
growth in gdp
growth in trade
explain the difference between trade as a share of GDP in Ireland and the USA
USA is more stable as it is a sufficiently large economy so trade as a % of GDP is not huge and more consistent
Ireland on the other hand is a smaller economy so susceptible to more fluctuations. Ireland depends on trade a lot more than USA. So trade holds a higher % of GDP and continuously grows
how does exporting differ between emerging markets and developed markets
in the past, majority of exports were from developed markets
after 2010, emerging markets overtook domestic markets in global share of world exports
growth has been higher in emerging economies
how are the volume and value of world goods trade changing
volume is increasing
value is decreasing
means a different nature of the goods that are being exported, moving away from expensive commodities to finished goods e.g. microchips
what do economists blame the global trade slowdown on
- china’s shift away from low value manufacturing (i.e. phones, microchips)
- a general decline in internal investment due to uncertainty about the future, movement of money into safer assets
- trade agreements and trade barriers, protectionism measures
- newfound reluctance to source too far from home (offshoring is no longer the next big thing), limiting geographical risk, shipping times (fast paced)
examples of exceptional forces that made growth in goods trade intensive that are now coming to an end
the emerging markets are getting more wealthy - emerging middle classes and buying power
minimum wages have gone up in these countries as a result - not as attractive for offshoring anymore
how does the volume in trade in services vs the volume of trade in goods differ right now
volume of trade in services is still growing
volume of trade in goods is stagnant
what country has the most protectionist measures
USA
how is politics playing an increased role in international trade
politicians are concerned with being reelected
e.g. Make America Great Again was all about bringing jobs and manufacturing back to the US
