trade Flashcards
How is international trad e measures
Measured by National statistics for merchandise , services and capital, regulated on a global scale world trade organisation .
Contemporary patterns of international trade
Dominated by advanced and emerging economies which have the wealth to reinforce their position. The least developed countries have limited access to global markets. E.g europe = 6301 billion dollars exported goods in 2020 whereas africa = 379
Merchandise
All inward and outward movement of goods through a country .
Agricultural exports are strong feature of eu countries.
Export of fuel and mining products is greatest in Middle East.
services global pattern
The growth of outsourcing made pattern more complex, and increase of connectivity of global supply chains. Especially between countries in trading blocs.
Services include , transport, communications construction and insurance,
Dominated by advanced economies, europe, and less developed countries tend to be the importers , Africa.
Capital
Flows of capital are the result of purchases and sales of Real assets , include physical items traded e.g real estate. Or financial assets e.g stocks.
Most of these flows are between small numbers of advanced economies but slowly Integrating low income developing countries.
FDI - refers to cross boarder investments.
Inter regional trade between Europe and North America
Eu and usa are trading partners accounting for 30% of global trade.
Main is exports to uk are aircraft metals and coins.
Main uk exports to usa are machines, vehicles and oil.
Intra regional trade within eu
59% of German exports are to the eu
High value of German trade within eu as a result of free trade agreement with eu members
How international trade can promote stability, growth and development between countries
Stability - if countries trade under wto, same rules can contribute to economic stability, some agreement go beyond trade and help with strengthening human rights for a more stable environment for investors.
Growth - trade stimulates production, contributes to GDP,and further investment like fdi. Can create employment opp and raise income.
Development - removal of tariffs can help generate foreign exchange which can be invested into reducing inequalities, in healthcare, education and infrastructure.
How international trade causes inequalities, conflicts and injustices.
Inequalities- Many lidcs have limited access to global markets, widening the development gap between countries, also skilled workers, especially men tend to benefit the most from employment opps created by trade.
Conflicts- trade conflicts can occur from changes in agreements, development of mining or deforestion can cause enrviornmtal conflicts.
Injustices- use of child labour and other forms of modern slavery in attempt to secure cheap labour.
How technology has increased international trade connectivity
Just in time technology enabled a cost saving in production of goods, parts can come already assembled and distributed when required. Car manufacture industry
Transport in increasing international trade connectivity
Investment in road, rail and air infrastructure has improved movement of goods.
Communications in international trade and connectivity
Digital opconnectivity is very good however use if ict is still limited in lidcs.
Impact of mncs operations in host countries
+ provide inward invest and jobs for local people.
+increase incomes and raise living standards, more spending, multiplier effect in local economies.
- exploitation of workforce especially in lidcs with poor working conditions and low wages.
-envrioenmtnal pollution which govs tolerate to attract investment.
Advantages and disadvtges of trade agreements
+ economic development through economic multiplier.
+negation as of trade with other large trading groups is easier.
-lack of access to trading blocs by poorer nations can widen development gap.
India
Direction and current components of international trade:
-main exports, agricultural, clothing and gems.
Main imports- crude oil, gold and silver.
Main trading partners- USA, EU and CHINA.
Changes in international trade patterns over time:
-until 1990s, imports trade policy was high tariffs on imports and restrictions on fdi.
Now one of world’s largest exporters of merchandise.
Shift in sector contribution to gdp from agricultural to services.
Interdependence with trading partners:
-bilateral trade relationship between china sn deindustrialised has contributed to growth in gdp, employment opps and income rising.
-uk and India working together to improve business links, string social link due to large Indian population in uk.
Impacts of trade:
-HDI increased
- local multiplier effect, chennai large port attracted MNCs like Ford, leading multiplier effect.
How an ac has a string influence in change in global trade system,Japan
Advantages of trade
-has various trade agreements including free trade agreement with UK.
-top trading partner is china.
Factors contributing to got strength of trade
Economic - inward and outward fdi, mainly by mncs.
Innovative use of technology.
Political- memberships of WTO and stable govs
Social- highly skilled educated workforce.
Environmental- close to large international markets in Asia.
How LIDC has limited influence in change in global trade
Sierra Lenore
Trade components
-small west African country one of poorest countries in the world,many natural resources and main exports are agricultural like cocoa and coffee.
Factors contributing to limited access to global markets
Economic- inadequate infrastructure,poor communications network.
Political- slow recovery from civil war, illegal trading not under control.
Social- education levels low,use of child labour.
Enrvionematal- prevelamce of diseases like malaria, enrvuronamtl damage to water and forest due to large scale mining.
