02 why does-the-world-trade
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02 why does-the-world-trade

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  • Skilled labour, finance, uni ed, science
  • Skilled labour, finance, uni ed, science
  • http://www.statistics.gov.uk/cci/nugget.asp?ID=199
  • http://www.wto.org/english/news_e/pres09_e/pr554_e.htm
  • http://www.international-economy.com/TIE_Sp09_WorldTrade.pdf

02 why does-the-world-trade 02 why does-the-world-trade Presentation Transcript

  • Why is the world trading?
  •  
  • Why is there world trade?
    • Natural resources
    • Price
    • Product differentiation
    • Political
  • Natural resources
  • Ownership of natural resources
  • Ownership of natural resources
  • Ownership of ‘natural’ resources
    • Airplanes
    • Cars
    • Machinery
    • Pharmaceuticals
    • Meat
    • Chemical
    • movies
  • Ownership of ‘natural’ resources The square mile! Cambridge science park Cambridge Science
  • Ownership of ‘natural’ resources Peat!
  • World trade
    • One of the main reasons for world trade is because different countries have an advantage over others through the ownership of natural resources.
    • Other countries have learnt to specialise in certain skills that they can use to trade from.
  • Price
  • Price
    • Some countries can produce goods relatively cheaper than others.
    • Again this is due to specialisation & availability of resources.
  • Do you think the UK has sweatshops?
    • Primark!
    • And then there are the ‘real’ sweatshops’… in India
  • Product Differentiation
  • Which country would you prefer to buy a car from?
  • Product differentiation
    • Many countries produce similar goods but the specifications & quality differ!
    • Think bottles of wine!
  • Political Reasons
  • Political reasons
    • Sometimes countries do not trade with each other for political reasons
    • Eg US v Cuba
  • Some more statistics…
  •  
  • Further reading See next slide…
    • http://www.tutor2u.net/economics/revision-notes/a2-macro-pattern-international-trade.html
    • Ideas UK position in world trade
    • Value of world trade
    • http://www.tutor2u.net/economics/presentations/a2economics/macro/InternationalTrade/default.html - latest version?
  • Oxfam & world trade
    • http://www.oxfam.org/en/campaigns/trade/about
  • Comparative advantage
    • http://www.telegraph.co.uk/finance/economics/6122712/Ricardos-theory-shows-that-win-win-situations-do-exist.html
    • Article
  • UK Trade Deficit widened to £3.5bn in September
  •  
    • http://www.wto.org/english/news_e/pres09_e/pr554_e.htm
    • Look at the bottom of page – great set of country data on their world trade – woyuld make a great activity for students to compare data / countries
    • Also has a table of data for 2008
  • http://www.unctad.org/en/docs/tdr2009_chart17_en.pdf
    • http://www.international-economy.com/TIE_Sp09_WorldTrade.pdf
    • http://www.guardian.co.uk/commentisfree/2009/nov/23/world-trade-doha-round-deal
    • Great reading article by CEO of WTO for students to read for HWK…
    • http://www.imf.org/external/datamapper/index.php
    • Great student activity looking at ec data