International trade and Access to markets Flashcards
International trade
The exchange of capital, goods and services between nations
Free market
An economic system in which prices are determined by unrestricted competitions between privately owned businesses
Regional trade agreements
Trade agreements between two or more partner countries regarding customs unions and tariffs
G7 countries
The most powerful industrialised countries - US, Japan, Germany, UK, France, Italy and Canada
Trade barrier
A government-imposed restraint on the flow of international goods or services
Tarriff
A tax on imported goods
Protectionism
Comparative advantage
countries specalise in providing goods and services that they excel at producing
Import license
A document issued by a national government authorising the importation of certain goods from a specific sourc e
Import quotas
Quotas set a physical limit restricting the quantity of a particular commodity that can be imported into the country within a specific period of time
Embargoes
The partial or complete prohibition of commerce and trade with a particular country. Usually political reasons rather than commercial
Subsidies
Grants or allowances usually awarded to domestic producers to reduce their costs and make them more competitive against imported goods
Sanctions
Restrictions on exports implemented for political reasons by countries and international organisations to maintain international peace and security
Regulatory or techincal restrictions
Restrictions placed on imports based on obstacles such as quality standards of goods or how they are produced e.g. if child labour is used govt may tariff their imports
Why has there been rising trade?
- Emergence of free market ideas at end of 20th century saw a push to remove barruers to trade
- RTA emerged due to increase in mobility of factors of production
- Global trade framework strenghthed by wto - gradually lowering barriers to trade
What was the impact of the 2008 financial crisis on trade?
Multilaterial trade agreements were difficult to achieve
Levels of trade fluccuated
Impact of covid 19?
Huge stall on trade and yet to have fully recovered from the impact
Impact of recessions?
Stalls in trade
Volume of trade?
- Stalled in recent years - 2018 value 19.48bn only 0.50 up from 2013 value
- Services in 2018 5.8bn increase
- Happening more than ever before
- Lics make up <1% of global trade exports and hics make up the most of trade
Who dominates trade?
North America, Eu, AP (large economic blocs)
Where is trade growing the fastet?
APR - china now largest trader globally
Where is intra regional trade strongest?
EU and APR and NA but to a lesser extenr
LA and SSA have less intraregional trade
USA, Germany and Japan account for what percentage of trade
25%
Top 4 exporters
China, USA, Germany and Japan
Top 4 importers
USA, China, Germany and Japan
What is the volume of investment
FDI has increased from 400bn in 1996 to 1500bn in 2016
Fallen to 1364bn in 2023
Top country for fdi?
USA ($190,000 million)
Investment flows in 2019?
Totalled 1.39 trillion - decline investment to developed fell 600vn whilst developing remained stable at around 760bn
What was the change in investment flows in 1980
Change from HIC-HIC, HIC-NEE, Now NEE-LIC
How much does apr account for?
40%
Who are the largest investors?
China,Japan, France
Ethical investment patterns?
Has increased - socially responsible w less harm to enviroment and labour resources
Reasons for investment?
Natural resources, population size, market size, Trade unit access, financial services and set up cost
Chinas belt and road initiative
Annouced by the chinese president Xi Jinping in 2013
It is a massive trade and infrastructure project that aims to link china physically and financially to dozens of economies across Asia, Europe, Africa and Oceania
Aims of the china belt and road initiative
- To promote economic prosperity of the countries along the belt and road and regional economic cooperation
- To strenghthen exchanges and mutual learning between different cultures
- To promote worl peace and development
How many countries take part in the B&R intiative?
As of jan 2018 - 71 countries including china
What do the Belt and Road parts consist of?
Belt - which recreates an old silk road land route
Road - not a road but a route through various oceans
