Trade in the Contemporary World - CASE STUDIES Flashcards
Where is the USA located?
In North America, bordered by Canada, Mexico and the Atlantic Ocean.
What are America’s advantages for trade
Labour force of 158 million (2015)
Strong trade relationships with Canada (strong bilateral trade), China (provide lots of FDI), EU and Japan.
US Trade Representative - implement US trade agreements to increase economic growth (eg. TPP Agreement).
What is FDI?
Foreign Direct Investment. Large inward investment by a foreign company/large TNC in a country.
What are some economic factors contributing to strength of USA trade?
Investment into freeways, rail, airports and ports.
Inward/outward FDI often by large MNCs
High level of productivity in agriculture, manufacture, service = takes advantage of economies of scale.
What are some environmental factors contributing to strength of USA trade?
Exploiting of natural ores, minerals , water and timber.
Range of climactic conditions, relief and soil = benefits agriculture.
Natural harbours = access to better fishing grounds.
What are some social-political factors contributing to strength of USA trade?
Multi-cultural labour force.
Democratic govt. = negotiate trade agreements, providing access to global markets.
Membership to WTO, OCED, NAFTA and TPP = promotes trade liberalisation.
What are some opportunities created by international trade in the US?
JOBS - 9 million depend on trade and investment between Canada and America.
Investment = cumulative causation by economic multiplier effect = increased economic growth, sustained socio-economic development.
USA can have effect on integrating LIDCs into global chains (eg. USAID project in sub-Saharan Africa)
What are some challenges created by international trade in the US?
Growth of container ports = local env. issues (eg. freight corridors in Long Beach/San Pedro Bay ports = biggest source of air pollution. Emissions of diesel, NO3, SO2 = contribute to asthma + CVD)
Recent trade disputes with Mexico, as Mexico has been accused of ‘price-dumping’
Increasing issue of illegal immigration + illicit trade (border control).
Where is India located?
In South Asia, bordered by Pakistan, Nepal, Bangladesh and is by the Bay of Bengal and Arabian Sea.
Directions and components of international trade patterns in India…
Exported materials - petroleum, engineering goods, chemicals, pharmaceuticals.
Imported materials - crude oil, silver/gold, machinery, electricals.
Goods are mainly distributed between India and the US, EU, UAE, Saudi Arabia and China.
What are some changes that have taken place in international trade patterns in India?
Before early 1900’s = trade policy of import substitution (high tariffs on imported goods + restrictions on FDI)
Liberal policies have been put in place
Early 90s = x2 global share of merchandise exports + x5 for services.
Shift in sector distribution = less agri., more services etc.
What are some economic factors contributing to strength of India trade?
Relations between China + India = increasing GDP and further investment.
100 Chinese companies in India, 165 Indian companies on China.
Both countries give FDI + export billions of dollars between them.
What are some social-political factors contributing to strength of India trade?
Increased political confidence. Goals to improve living standards + border issues.
UK has helped Indian businesses for them to invest within the UK.
Improved trade relations has stabilised political conflicts.
What are some environmental factors contributing to strength of India trade?
Better co-operation on emergency flood management in river basins.
Monitoring of water supply, deforestation and land degradation.
Environmental data is being shared between China and India.
What are the overall impacts of trade on India?
Growth is being stimulated by international trade around large ports in India.
Creation of open market economy + privatisation of state-owned enterprises.
HDI has increased and share of merchandise exports has doubled.
