Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

02 why does-the-world-trade

635 views

Published on

Published in: Business, Technology
  • Be the first to comment

  • Be the first to like this

02 why does-the-world-trade

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

×