Trade (General) Flashcards
What is trade?
The buying and selling of materials, goods and services.
What is free trade?
Trade without any restrictions, eg tariffs, quotas, subsidies etc.
What % of world trade is just between HICs?
50%
What is the difference between visible and invisible exports?
Visible = physical goods/materials, eg agricultural, materials.
Invisible = Services, eg finance, tourism.
What is ‘Trade Deficit’ and ‘Trade Surplus’?
Deficit = import more than you export, -ve trade balance.
Surplus = export more than you import, +ve trade balance.
What are some advantages of a trade surplus/disadvantages of a trade deficit?
+ Shows strong economy
+ Shows more employment opportunities
+ Makes it easier to borrow
+ Don’t need to allow FDI, who may not have countries best interest at heart
Why is a trade deficit not always bad? And why are they not always true?
Country must make up for short-fall another way, eg through borrowing money or FDI. FDI can be seen as a vote of confidence, and act as a source of economic growth.
Not always true due to invisible trade.
Why does Asia have a high share of the world’s exported manufactured goods?
- Cheap labour, TNCs attracted to, eg The Asian Tigers, Taiwan.
- China has a lot of land to manufacture on, and has the IT knowledge and skill.
Name three of the world’s top exporters, give the number of one.
1) China, $3.6 trillion in 2022
2) US
3) Germany
Name three of the world’s top importers.
1) US
2) China
3) Japan
What is the UK’s trade relationship with the USA?
- USA is UK’s largest single trading partner, accounted for about 1/5 of all UK export.
- USA account for about 13% of all UK imports.
- Have a trade surplus with USA.
What is the UK’s trade relationship with China?
- China is UK’s largest import partner, mainly machinery.
- Have a trade deficit with China.
