Docstoc

intranet.cramlingtonlv.co.ukgeogwebyear13Course

Document Sample
intranet.cramlingtonlv.co.ukgeogwebyear13Course Powered By Docstoc
					   The Development of Trade
• Trade results from an uneven
  distribution of raw materials.
• It plays an important role in the
  economy of most countries.
• European colonial powers used raw
  materials from their colonies to
  establish their own industries.
         Balance of Trade
• The difference between income from
  visible exports and cost of visible
  imports.
• Trade surplus – countries earn more from
  their exports than they pay for their
  imports.
• Trade deficit – countries spend more on
  their imports than they make from
  exports.
 Regional Trade Groups/Blocs
• Operate Free Trade Agreements , which
  means duty and quota free trade with
  immediate neighbours.
• Aim – to strengthen political relations
  and security between neighbouring
  countries.
• EU and NAFTA are the largest but
  membership is in a state of constant
  change.
   Direction of World Trade
• Most trade between advanced market
  economies (EU, USA, Japan)
• These had little trade with LEDCs – they
  exported more to them than they
  imported.
• Little trade between LEDCs who were
  producing similar types of goods.
• Older developed countries face increasing
  competition from NICs (Singapore, Hong
  Kong)
• World trade dominated by powerful
  TNCs.
       GATT and the WTO
• GATT set up in 1948 to reduce tariffs
  and provide forum for discussion of
  problems.
• Replaced by WT0 in 1995 which aims to
  help LEDCs by controlling TNCs.
• Many LEDCs are now willing to join to
  ensure a balanced and sustained recovery
  of the world economy.
Recent Trends in World Trade
• World trade has increased with trade in
  services increasing at a faster rate.
• Many of Asia’s NICs are the main
  beneficiaries.
• LEDCs and NICs have achieved the
  fastest rate of expansion.
• World trade is fickle and the volume and
  value of world trade can fluctuate.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:0
posted:5/13/2013
language:Unknown
pages:6