01 intro to-trade
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01 intro to-trade

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    01 intro to-trade 01 intro to-trade Presentation Transcript

    •  
    • Syllabus to take us up to Xmas
      • Patterns of trade
      • Identify patterns of trade between developed and developing countries.
      • Students should be aware of changes in trade flows between countries and the reasons for them ,
      • for example the potential impact of China and India on world trade patterns and the possible reaction of developed economies.
    •  
    • Volume of world trade merchandise exports & GDP 1950 -2008 Annual % change Use your whiteboard - compare the changes of exports and GDP over from 1950 – 2008 (4 marks)
    • Volume of world trade merchandise exports & GDP 1950 -2008 Annual % change Use your whiteboard - compare the changes of exports and GDP over from 1950 – 2008 (4 marks) Difference between exports & GDP What type of relationship is there? Is this a volatile or stable market?
    • Volume of world trade (annual % change) Exports Imports Use your whiteboard - compare the changes for imports and exports from 2000 - 08 (4 marks)
    • Composition of geographical regions
    • Trade Groupings
      • This is where countries in various parts of the world come together to form trade groups with varying degrees of formality.
      • Their aim is to encourage trade among a group of nations.
    • Trade groupings
      • ASEAN
      • MERCOSUR
      • NAFTA
      • EU
      • CIS
      • WTO
    • ASEAN Trade Group
    •  
    • NAFTA
    •  
      • Commonwealth of Independent states
    • World Trade Organisation. Everyone in green = member of WTO
    • Customs Union V Free Trade?
      • Free trade
      • Where a group of countries agree to trade without barriers between themselves , but maintain their own individual barriers with countries outside the area.
      • Eg NAFTA
      • Customs Unions
      • This goes further than free trade, which eliminates not only barriers to trade between the member countries BUT also to have a common tariff barrier against the rest of the world.
      • Eg The Single Market
    • Typical Evaluation Q’s
      • To what extent do trade groupings generate increased trade and improve efficiency?
      • Requires you to know about…. trade diversion versus trade creation within the context of trade groups!
    • Trade Diversion
      • When countries within a trade group import from within the partner group countries rather than import from ‘cheaper’ non partner countries.
      • This may encourage some of the countries’ industries to remain inefficient rather than compete on a global scale!
    • Trade Creation
      • This is where the members of the trading group start to specialise in industries that they have a competitive advantage and benefit from economies of scale and improve efficiencies.
      • More on this in a later lesson.
    • Your task – Internet research
      • Using your handout (last 6 slides) of the different world trade groups
      • You will be given one trade group to investigate & then share your findings with everyone else….
      • What size is the trade group?
      • How many countries are in it?
      • When did it start?
      • What reasons were given for the start
      • Include any other ec data that you can find too.
    • Suggestions for research links…
      • http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/regions/
      • http://news.bbc.co.uk/1/hi/world/americas/5195834.stm
      • http://news.bbc.co.uk/1/hi/world/asia-pacific/country_profiles/4114415.stm
      • http://news.bbc.co.uk/1/hi/world/europe/country_profiles/2429503.stm
    • Next lesson What is world trade & UK data
    • WORLD TRADE
      • Why is there world trade?
      • Natural resources
      • Price
      • Product differentiation
      • political