International Trade Flashcards
Global Systems & Global Governance
Define international trade.
International trade is the import and export of goods and services between countries.
What is the recent trend of international trade?
The volume of trade has increased by 8x between 1980 and 2008. The pattern of global trade is changing as developing economies are catching up to developed nations.
What percentage of global trade does the poorest 49 countries make up for?
Despite making up 10% of the world’s population, but make up 0.4% of world trade.
What is foreign direct investment?
FDI is when a person or company spends money in another country in order to generate a profit.
How much FDI was spent in 2016?
$1500bn
What is a trading bloc?
A trading bloc is an association between governments that promote and manage trade. They often remove trade barriers.
What are some of the biggest exports of developed countries?
1= Machinery
2= Medicine
3= Cars
4= Chemicals
What are some of the biggest imports of developed countries?
1= Food
2= Tobacco
3= Crude Oil
4= Machinery
5= Clothes
What are some of the biggest exports of developing countries?
1= Food
2= Tobacco
3= Crude Oil
4= Minerals
What are some of the biggest imports of developing countries?
1= Machinery
2= Medicine
3= Manufactured goods
What are some of the biggest exports of emerging economies?
1= Machinery
2= Clothes
3= Manufactured goods
What are some of the biggest imports of emergins economies?
1= Cars
2= Chemicals
3= Crude Oil
4= Minerals
What factors affect access to markets?
1= Extent of trade barriers
2= Wealth & Development
3= Being in a trading bloc
What is a SDT?
A special and differential treatment agreement is formed by the World Trade Organisation to let the least developed nations bypass tariffs to give them greater market access.
It is hard for countries with little _________ _________ to establish new industries as high ________ make their products ______________. This makes them ____________ on selling low-value _________ products, so they have low ___. They then have less money to _________ in ________ so their ___________ _______ is low.
market access
tarriffs
uncompetitive
dependent
primary
GNI
invest
industry
economic growth
People in countries with _________ ______ _______ tend to have high paying jobs, giving them higher _________ _________. Those with little access to _________ have less money for things such as __________ and have a worse __________ of ______
better market access
disposable income
markets
education
quality
life
How does trade and market access affect people’s lives around the world?
1= It benefits those in developed nations more than in developing (primary products like copper are exported to developing nations and turned into secondary products like electronics which are more expensive)
2= People with better access to markets have wider range of goods to buy, increasing standard of living.
What are the aims of fairtrade?
1= Pay a fair and guaranteed price for a product
2= Improve working conditions
3= Pay a Fairtrade premium, which is reinvested in the community
How many bananas are produced per year?
More than 50 million tonnes, 20 million tonnes of which is exported.
Which region is best for banana growth?
Tropical regions
What are the biggest exporters of bananas?
1= India
2= China
3= Phillipines
4= Ecuador
5= Brazil
What are the biggest importers of bananas?
1= USA
2= Belgium
3= Russia
4= Holland
5= Germany
The global banana trade is dominated by just a few _____ such as Chiquita, Dole and Del Monte. They often own or control large _____________, allowing them to dictate terms and _______ to smaller _______ who depend on TNCs for ________ to the market
TNCs
plantations
prices
growers
depend
access
Vertical and horizontal _________ enables the TNCs to control the entire ______ ______. This gives them a significant ___________ in terms of _________ of _______, allowing them to _________ smaller competitors. They also have considerable __________ power (_______’s _ ______)
integration
supply chain
advantage
economies of scale
undercut
bargaining
Porter’s 5 forces
What are some benefits of the banana trade?
1= Nutritional benefits (60% of calorie intake in Uganda)
2= Employment (300k in Phillipines)
3= Supports less developed economies.
4= Supports their infrastructure
What are the issues with the banana trade?
1= Pesticides harm the environment
2= Land cleared for plantations leads to a loss of biodiversity
3= Low wages and poor conditions ($13 a day in Ecuador)
4= Children 8yrs found in Honduras
Fairtrade ensures that producers receive fair ______ for their products, improving working __________ and investing in ____________ ________ such as _______ and clinics. The Fairtrade price is typically _______ than the market price to cover the costs of __________ production and fair prices for farmers. Fairtrafe bananas account for over ___% of bananas sold in the UK. Supermarkets such as _________ only sell fairtrade bananas.
prices
conditions
community projects
schools
higher
sustainable
40%
Waitrose
Tell me a fact about the Windward Islands!
In the Windward Islands, Fairtrade farmers have reduced their pesticide use by 50%
