international trade patterns

• What is trade defined as?

  Movement of goods and services from producers
• What sectors does trade span?

  Many sectors of industry
• How is trade measured?

  By movement of items between countries
• What are the two types of physical trades?

  Primary and secondary trades
• What does the tertiary sector trade include?

  Trade in legal, educational, and professional services
• How many countries are typically involved in trading in highly developed economies (HDEs)?

  Approximately 80 countries
• What is the typical life expectancy in HDEs?

  75-85 years
• What is the main source of employment in HDEs?

  Office work
• How many countries are involved in trading in emerging major economies (EMEs)?

  Approximately 80 countries
• What is the life expectancy in EMEs?

  65-75 years
• Which economies are included in the BRIC and MINT groups?

  Brazil, Russia, India, China, Mexico, Indonesia, Nigeria, Turkey
• What are the trading characteristics of EMEs?

  Countries undergoing rapid factory expansion and industrialization
• Which countries are important hubs for call centers?

  India and the Philippines
• How many countries are involved in trading in less developed economies (LDEs)?

  Approximately 30 countries
• What is the life expectancy in LDEs?

  50-60 years
• What challenges do LDEs face?

  Conflict and weak governance
• What role does agricultural and raw material trade play in LDEs?

  It plays an important role in the economy
• What affects agricultural trade in LDEs?

  Fluctuations of food prices due to market forces
• What is the main driver of global economic integration?

  Regional trade agreements (RTA)
• What was established after WW2 to lower trade barriers?

  World Trade Organization (WTO)
• What does free trade mean?

  Trade without quotas, tariffs, or restrictions
• What are the pros of free trade?

  Encourages FDI and transfers of technology
• Which regions dominate world trade and merchandise exports?

  1. America, Europe, and East Asia
• What are the cons of free trade?

  Outsourcing and structural unemployment
• Who is now the world's leading exporter?

  China
• What percentage of global trade do the poorest 49 countries account for?

  0.1%
• How does free trade affect low-income countries?

  It can lead to better technology and infrastructure
• How has the volume of world exports in merchandise changed from 1948 to 2013?

  It has been exaggerated by type and limitation
• What are the potential negative impacts of FDI in low-income countries?

  Exploitation of workers and environment
• What is protectionism?

  Deliberate policy to impose trade restrictions
• What trend was observed in developed economies from 1993 to 2013 regarding merchandise exports?

  They saw a downturn in merchandise exports
• What is the intention behind protectionism?

  To protect home-based industries from competition
• Where is protectionism used?

  In both developed and developing countries
• What percentage of exports did Asia and Oceania account for in 1948?

  14%
• What percentage of exports did Asia and Oceania account for in 2013?


  31.9%
• What are tariffs?

  Taxes placed on imports
• What is an import license?

  Document authorizing importation from a specific source
• What is foreign direct investment (FDI)?

  Money invested into a country by TNCs
• What are import quotas?

  Physical limits on quantity of imports
• What are some factors influencing the volume patterns of FDI?

  Manufacturing industries and natural resource development