International trade and access to markets

Question 1

Which barriers to trade increase control over the quantity of imports/exports?

Answer 1

Quotas, sanctions, embargoes.

Question 2

Which barriers to trade make domestic production more competitive?

Answer 2

Import licence - authorising importation of goods from a certain source.
Subsidies - lowered grants or allowances on domestic producers - make their wares more attractive.

Question 3

What factors have influences on trade?

Answer 3

Level of free trade.
Regional trade agreements
Economic shocks
Comparative advantage
Proximity
Market size and strength.
Geopolitical relationships.

Question 4

Define comparative advantage

Answer 4

Ability of a specific group or person to perform a specified economic activity.
E.g - Senegal and groundnut.

Question 5

How can the international trade system be seen as unfair ?

Answer 5

Favours HICs and more influential trade blocs.

Question 6

What are the trends trade?

Answer 6

The largest and most dominating trade groups are the Asia pacific, Europe and North America.

Question 7

How can trade trends shift in the future?

Answer 7

Shift to a trade group of Asia pacific, sub Saharan Africa and Latin America.

Question 8

What are the trends in FDI investment.

Answer 8

Japan, China and France are the largest FDI investors.
2019 = 1.39 trillion total of FDI flows - this was the 4th annual decline in a row (so it’s going down).

Question 9

Outline the trading relationships and patterns with HDE countries.

Answer 9

America- more protectionist Trump
EU - 65% of trade = intra- regional.

Question 10

Outline the trading relationships and patterns with EE (emerging economies) countries

Answer 10

CHINA - Responsible for about 20% of global exports and 15% of global imports

India - past 25 years - rapid and stable industrial growth.

Question 11

Outline the trading relationships and patterns with EE (emerging economies) countries

Answer 11

CHINA - Responsible for about 20% of global exports and 15% of global imports

India - past 25 years - rapid and stable industrial growth.

Question 12

Outline the trading relationships and patterns with LDE countries

Answer 12

Two distinct trading blocs in Latin America (MERCOSUR and the PACIFIC ALLIANCE)

Question 13

What do LDCs, HDCs and HDEs stand for?

Answer 13

Least developed countries
Highly developed countries
Highest economic development

Question 14

What is free trade?
Aims and impacts?

Answer 14

Policy by which a government doesn’t discriminate against imports and exports by applying tariffs.
Aims to increase nation’s economic growth but market costs and government determine productor income.

Question 15

What is fair trade?
Aims and impacts?

Answer 15

A movement aiming to help producers in LDEs to gain better trading conditions.

Inefficient and too small to make a big difference.
Empower vulnerable and wider community.

Question 16

What are the causes of differential market access?

Answer 16

HDEs have greater market access because can pay higher taxes on exported goods, more influence in trade blocs, can invest in foreign markets.

Question 17

What are the impacts of differential market access?

Answer 17

Limited access to markets repels foreign investors
Lack of trade - unemployment, no development, threats to food and energy security.

Question 18

Responses to differential market access- SPECIAL DIFFERENTIAL TREATMENT .
Outline SDT

Answer 18

Special access to the markets of their trading partners.
Power to add own barriers to trade to create equity.

Question 19

What are the negative impacts of special and differential treatment?

Answer 19

China refuses to give up right to subsidised exports. Means countries have cheap imports from China- undermine own industrial base.