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02 why does-the-world-trade


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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> </li></ul><ul><li>Ideas UK position in world trade </li></ul><ul><li>Value of world trade </li></ul><ul><li> - latest version? </li></ul>
  21. 23. Oxfam & world trade <ul><li> </li></ul>
  22. 24. Comparative advantage <ul><li> </li></ul><ul><li>Article </li></ul>
  23. 25. UK Trade Deficit widened to £3.5bn in September
  24. 27. <ul><li> </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.
  26. 29. <ul><li> </li></ul>
  27. 30. <ul><li> </li></ul><ul><li>Great reading article by CEO of WTO for students to read for HWK… </li></ul>
  28. 31. <ul><li> </li></ul><ul><li>Great student activity looking at ec data </li></ul>