The document discusses the functions of merchant ships and their role in international trade. It notes that merchant ships were important for transport in the 19th century and different types of cargo ships later developed for specific goods like oil, timber, and cement. Shipping remains the cheapest form of transport for large cargo quantities and is critical for international trade, nation building, and domestic trade in island countries. Various factors influence world trade, including economic resources, market conditions, political frameworks, technological development, and financial situations between countries.

1. By Dr. Oladokun Sulaiman Olanrewaju Introduction to Shipping and Marine Engineering

2. MERCHANT SHIPS FUNCTION Early stage, steam reciprocating engines was recognized as an important transport vessel at the end of the 19 th century Merchant Ships Classified :- - Passenger Ships - Cargo & passenger Ships - Cargo Ships Cont -

3. However with development of air planes, all have been taken over in their place. At present, passenger ships are mainly use for luxurious sight seeing cruise ships The cargo ship changed into so called specific cargo carrying ships as a result different variety of ships such as oil tankers, timber carrier, cement carrier, etc.

4. THE ROLE OF SHIPPING IN INTERNATIONAL TRADE PURPOSE

5. Transport of good by sea is the cheapest form of transport and till some time ago it was also the cheapest form of transport for passengers. Little wonder than that countries ‘big & small’, depend on merchant ships to transport cargoes in large quantities & to help finance their international trade (adding not more than 1% of the total cost of the product).

6. The only real competition to shipping is road transport but this also is limited to small quantities and over small distances or in land locked countries Merchant shipping thus plays a very important role in nation building . Without merchant ships, there would be no trade and without trade a nation cannot grow.

7. Merchant shipping plays a very important role not only in international trade but also domestic trade . This is specially true for countries which are build up around the archipelago such as Indonesia, Philippines or Greece

8. FACTOR INFLUENCING WORLD TRADE

9. World trade and its development is depend upon a complex pattern of conditions that exist in a country and relations between the various countries of the world. These conditions and relationships will vary in their influence on the world trade through time, location and situation and may act in conjunction with or at times in opposite direction to each other

10. VARIOUS FACTOR classifications General Economic Resources Market Conditions Political Framework Technological Development Financial Situation & Payment Conditions

11. General The present individual division of countries The behavior of countries and individuals The size and composition of the population

12. Economic Resources The natural resources and their spread among countries The law of comparative advantage The national income and the stages of economic development Geographic and climatic conditions The availability of labour The growth in basic productive industries

13. Market Conditions The present international trade system The systems of tariffs and customary practice The development of individual world prices The changing of habits and sales promotion The share of each country’s export as related to world exports by groups of commodity The diversification of exports by country

14. Political Framework The political division of the world The stability of the national political system The governmental influence The system of international co-operation, discrimination and long range trade agreements

15. Technological Development The transport apparatus and the transport links The general technological system The possibilities for substituting raw materials The spread of multinational companies and their international behavior

16. Financial Situation and Payment Conditions The availability and conditions of international finance The general debt burden, debt service and credit ratings The external assistance and general development aid to developing countries