Trade Flashcards
Visible trade
Trade of goods I.e. Imports and exports
Trade blocs - hinder or assist development?
ASSIST act as a catalyst to advance world trade Hugely influential Helps promote peace HINDER Achievements limited Only benefit richer countries e.g. EU Does not help rural workers e.g. Farmers
Balance of trade
Difference between import and exports (value)
Trade deficit
Where imports are more than exports
Trade surplus
Where exports are more than imports
Free trade
Trade without tariffs, quotas, trading blocs etc…
Protectionism
Trade with tariffs, quotas, trading blocs etc…
World Trade Organisation
Deals with the rules of global trade, with the SI, of easing trade and getting rid of hindering
Currently focused on helping the worlds poor by reducing and removing farming subsidies
Impact of farming subsidies in rich countries
WTO allows them as it is ‘domestic support’
Large farmers can produce huge volumes, which the EU and American governments buy, and ‘dump’ on developing countries in the guise of aid
Comparative advantage
A country that specialises into one product and makes it cheaply but sells it for more
Specialisation
When a country chooses one product to make the most of
Division of labour
Split manufacturing into set work forces
