international trade Flashcards
reasons why there has been an increase in the volume and pattern of international trade
- end of 20th century emergence of free market ideas
- regional trade agreements emerged
- in 1995 WTO replaced GATT lowering barriers with free trade as its aim
- global financial recession has led to increased difficulty in reaching global agreements
what are the advantages of international trade?
increased employment comparative advantage fewer domestic monopolies purchasing power economies of sale transfer of technology
what are the disadvantages of international trade?
over-specialism product dumping protectionism and tarrifs stunted growth or decline of local and emerging industries de-skilling
increased employment
increased production for export is likely to result in increased employment
purchasing power
increasing trader results in increased competition that lowers prices and allows consumers to be able to buy more for their money
de skilling
traditional skills and crafts may be lost when production technology replaces manpower
over-specialism
if demands fall or if the same goods can be produced cheaper overseas then production shifts to other products
what are capital flows
mainly from more developed countries to less developed countries
what are technology flows?
mainly from HIC to LIC
what are raw material flows?
mainly from LIC to HIC
what is trade?
exchange of resources from one country to another for a beneficial price
what is international trade?
exchange of capital goods and services across international borders
what is potectionism?
the economic policy of restraining trade between states
what are tarrifs
a tax on imports
what is an import licence?
licences issued by a national government authenticating the importation of goods from a specific source
