W1P5 Traded and Non-Traded Goods Flashcards
Are PERSONAL COMPUTERS a traded or non-traded good?
Personal computers are easily tradable. They are relatively small and
will easily survive the transport, hence most personal computers are
nowadays manufactured in Asia.
Is BREAD a traded or non-traded good?
For bread it would depend on the type and the distance. Fresh bread is
more difficult to trade than packaged bread. In London, you might be able to buy bread produced in Paris but most likely not one produced in Auckland.
Is ONLINE MEDICAL COUNSELLING a traded or non-traded good?
On-line medical counselling would in general be easily tradable over the internet. However, most free-trade agreements do not include services. In addition, there are a range of non-tariff barriers i.e. different standards and legal requirements that prevent the trade of on-line
medical counselling.
Are NEWSPAPERS a traded or non-traded good?
Traditional paper newspapers used to be difficult to trade internationally, as they quickly become outdated. Online newspapers, however, are easily tradable e.g. you can pay for online excess to the New York
Times when you live in the UK.
Is INSURANCE a traded or non-traded good?
Insurance would be easily tradable internationally from an economic perspective. However, they are in practice less tradable because of legal restrictions e.g. you cannot use a Chinese car insurance in the UK.
Are CAR RENTALS a traded or non-traded good?
A car rental is almost non-tradable in many cases.
A car you rent in Mumbai cannot be used in the UK. However, a car you rent on the French-Spanish border can be easily taken across the border. So it would ultimately depend on distance and legal circumstances
Is TOURISM a traded or non-traded good?
Tourism is clearly tradable. It is slightly different from other goods and services that are traded as the service is now provided in the exporting country. Nevertheless, income would flow to the exporting country
