GSGG - International Trade Flashcards
What is the volume of international trade like?
- growing rapidly
- only fell during the financial crisis
- NEE’s are growing as exporters, leading the world to trade more as a whole
What are the patterns of international trade and investments like?
Investments
- mainly from HIC’s to LIC’s, since they benefit from the the lower labour costs
International trade
- NEE’s are increasingly becoming large exporters
- trading blocs and agreements are solidifying relationships between countries
What is fair trade?
- ensuring that producers who may have been previously exploited to be given safe working conditions and fair wages
What are trade blocs?
- groups of countries in a trading agreement
Why are trading blocs beneficial for the countries that are part of it?
- lower tariffs
- higher quotas
Give 2 examples of trading blocs
EU - 28 countries in europe that allows free trade between them
NAFTA - north american free trade agreement (Mexico, USA and Canada)
Name 3 factors affecting access to markets
- other trade agreements
- trading blocs
- wealth
How do trade blocs affect access to markets? (Positive and negative)
Positive
- creates relationships between the countries
- may improve the economy of LIC’s that are part of that bloc
Negative
- can limit trading with other countries (UK left EU because of its limits on trading with other countries)
How do other trade agreements affect access to markets? (Positive)
- the SEZ (special economic zone) increases access to markets for countries that may not have been able to afford it on their own
- provides lower tariffs, higher quotas, less regulations
How does wealth affect access to markets? (negative)
- less wealthy countries usually have less access to markets
- HIC’s can afford to pay the higher tariffs on imports/exports, so they can trade more freely with countries around the world
