International trade

Question 1

What are the advantages of international trade?

Answer 1

• transfer of technology
• increased employment
• competition which lowers prices
• economies of scale: countries produce a narrow range of goods which means that a country can produce in higher volumes

Question 2

What are the disadvantages of international trade?

Answer 2

• exploitive industries
• de-skilling when technology replaces people
• tarrifs

Question 3

What % of umbrellas are made in China?

Answer 3

70

Question 4

Why is the city of Shaoxing called the umbrella capital of the world?

Answer 4

half a billion umbrellas are made there annually in more than 1200 factories (a single worker makes 300 a day)

Question 5

How has specialisation kept Songxia the umbrella capital?

Answer 5

they manufacture all types of umbrellas (traditional, golf, children’s, wedding, parasols, fashion)

Question 6

Apart from specialisation why else is Songxia maintaining their production?

Answer 6

• cheap production costs (cheap labor costs)
• government support

Question 7

What % of global trade does the 49 poorest countries account for?

Answer 7

0.6%

Question 8

What % of global trade does the 5 richest countries account for?

Answer 8

37%

Question 9

Why do LICS account for a low percentage of global trade?

Answer 9

they are limited by low value primary crops where prices fluctuate