1. Global Trade &
Development
Built it here, sell it Everywhere
M.Thoucid

2. Agenda
WTO
International Trade
 Pattern of Trade
Benefits
How Does they Global Trade help to
develop the country( Mexico).
M.Thoucid

3. WTO
• the World Trade
Organization (WTO) is
the only international
organization dealing with
the global rules of trade
between nations. Its main
function is to ensure that
trade flows as
smoothly, predictably and
freely as possible.
Members
Observers
Non-Members
Formation January 1, 1995
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4. INTERNATIONAL TRADE
• Trade means Exchange of goods and services.
• Trade plays a key role in an increasingly interconnected and
interdependent world, and it makes up a large part of the global
economy.
• In 1970 value of world goods & services export was 0.4 trillion
dollar a 10% of world output.
• In 2004 value of world export is 10.8 trillion dollar is a Quarter
of world Output.
• The pattern of trade.
M.Thoucid

5. Pattern of Trade
50% of world trade Developed
Countries
1/3 is developed and developing countries.
35% north south Trade
15% is developing countries in
World Trade
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6. Developed Countries
• Europe, North America and East Asia.
• They are exporting Computer, automobiles and Airplanes.
Developing Countries.
• Africa, south Asia and Latin America
• They Exporting Basic Staples (rich, wheat and sugar)/
Textiles.
 Some countries like Taiwan more free trade from others.
They export is about 50% of GDP.
 Uganda is 12% of they GDP.
M.Thoucid

7. For Example
• Over the past 40 years, trade has grown from 9.6% to 26% of
the U.S. national economy. This shift has meant that more
U.S. jobs are linked to trade and that Countries can buy more
low-cost goods from abroad.
• As poor countries become richer and more integrated in the
global economy, It has the potential to be a significant force
for reducing global poverty by economic growth, creating
jobs, reducing prices, increasing the variety of goods for
consumers, and helping countries acquire new technologies
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8. Benefits For Countries
Two Reason for Specialization and trade considered benefit
for Countries.
 Concept of Comparative Advantage.
 Economic of scale.
Comparative Advantage.
For Example:- Pakistan and Sweden.
• Pakistan produce rice and mango.
• Sweden produced paper and Steel products.
They both countries Export and import they goods. It is Inter
Industry trade Because relative costly to produce
(the opportunity cost like labor, resource etc)
M.Thoucid

9. Economic of Scale/product
differentiation
Product differentiation:-
Same Product with Some Difference.
For Example:- car
Japan and US producing cars with some different models,
technology. Make a product more effective for consumers.
the global economy has been essential in enabling many
developing countries to develop competitive advantages in the
manufacture of certain products.
M.Thoucid

10. Benefits
• Policies that make an economy open to trade and investment
with the rest of the world are needed for sustained economic
growth.
• the average import tariff has fallen from 30 percent to 10
percent over the past 20 years.
• Although there are benefits from improved access to other
countries' markets, countries benefit most from liberalizing
their own markets.
M.Thoucid

13. How Does they Global Trade help
to develop the country( Mexico)
The global financial crisis, which hit the Mexican economy
relatively hard.(2008-09)

14. • The Mexican economy has successfully overcome the global
financial crisis of 2008-2009 help of fiscal and monetary policy.
• Mexico has launched a unilateral liberalization programme, to be
implemented between 2009 and 2013, lowering tariffs on a wide
range of manufactured goods.
• Mexico simplified its tariff structure by reducing the number of
tariff levels from 88 to 28 and also adopted measures to simplify
customs procedures and reduce import costs.
• Mexico promotes its exports through different types of
programmes, in particular the Programme for Industry,
Manufacturing, Maquila(electric saver) and Export Services
(IMMEX). During the period 2007-2011, 66.2% of Mexico's
exports and 47.2% of its imports were made by companies under
the IMMEX programme.
M.Thoucid

15. Continue…
• In order to promote and increase FDI, Mexico has continued to sign agreements
for the Promotion and Reciprocal Protection of Investments. As of June 2012,
Mexico had 28 investment agreements in force.
• Mexico has reduced the use of anti-dumping measures. By June 2012, Mexico
had 38 anti-dumping measures in force.
• Mexico strongly promotes its manufacturing export sector through financial
support programmes, tax incentives and training programmes. The main
programmes offering tax benefits.(import tax refund).
• Mexico continues to be one of the main petroleum producers in the world;
however the production of crude petroleum declined by 17% between 2007 and
2011, despite an increase in investment in the sector. Also, Mexico is currently a
net importer of refined petroleum products.
M.Thoucid

16. 1947 1995

17. THANK YOU
BE GLOBAL AND ACT LOCAL

18. Feedback Please!!!
M.ThoucidAhamed