international trade and access to markets Flashcards
Trade definition
The exchange of goods, money and services between countries regions villages or individuals
What are the general patterns of world trade in terms of HIC, EDC and LIC?
- Main export come from LIC’s and NEE’s and are imported by the HICS where demand is higher and people have more disposable income
Examples of products that are traded across HICS and LIC’s
- Raw materials such as: oil
- Agricultural products and machinery such as dairy
What is differential access to trade and why is it an issue?
- The varying ability of countries to trade within the international market
- Countries can be limited by economic impacts poor living standards and the industrialisation
- Causes countries economies to have stunted growth
What is fair trade?
A foundation to ensure producers receive better trading conditions and a fair price and I’m not exploited because of their underdeveloped markets
What are trade blocks?
Groups of countries in a trading group and agreement allowing them to have certain trading advantages over other countries
What products do the USA export?
Petroleum fish and cars
What products does the UK export?
Cars
What products does Brazil export?
Soya beans
What are trade agreements?
Wide ranging taxes, tariff and trade treaty that often includes investment guarantees
- Exists when two or more countries agree on terms that help them trade with each other
What are special economic zones?
An area in which the business and trade laws are different from the rest of the country
What does special economic zones aim to do?
Increase trade balance employment job creation and effective administration
What is special and differential treatment in terms of trade?
A set of provisions that exempt developing countries from the same strict trade rules of more industrialised countries
In terms of trade, what does protectionism mean?
Shielding a countries domestic industries from foreign competition by taxing imports
What are tariffs?
Allows the government to promote domestic products and thereby boost the domestic production of goods and services
- Limiting foreign goods and service services in the marketplace
What are quotas?
Quotas boost domestic production by restricting foreign competition
What are subsides?
Non-tariff barriers to reduce the volume of imports by encouraging domestic production
