Trade

• Import Items Of Pak

  1.Agriculture

  -Tea+Oil+Pulses(Sri Lanka And South Africa)

  2.Crude Oil & Petroleum Products (Gulf States)

  3.Construction+Mining+Industrial Machinery

  4.Minerals+Office Machinery
• Export Items of Pakistan

  1.Cotton+Cotton Textile Goods(USA,UK,ME)

  -Cloth+Ready Mate

  2.Leather Preparations(USA,UK,Arab Community)

  -Footwear

  3.Fruits

  Oranges+Mangoes

  4.Spices+Cement+Sports Goods+Rugs
• Tariffs is one type of barrier to international trade. Tariff is a tax on imported goods. The purpose of tariffs is to protect domestic industries from foreign competition by making imports more expensive than domestically produced products.
• Trade Barriers are the obstacles that prevent free trade between countries.
• Subsidies are government payments made directly to businesses or individuals to encourage them to engage in specific economic activities. Subsidies can take many forms, including cash grants, low-interest loans, tax breaks, and price supports.
• Quota is another form of protectionism that limits the amount of a good or service that can be imported into a country during a given period of time. Quotas are often used as an alternative to tariffs when countries want to limit imports without raising prices through taxes.
• Trade Balance & Negative Balance of Trade

  • Difference b/w Value of Export & Value of Import
  • aka trade deficit
  • VoE less then VoI within 1year
• Reasons for NBOT

  • Less Export
  • Import Expensive+Ban on Export
  • Tough International Competition
  • Limited Trade Agreements
  • High local consumption rate
  • Compromise on Quality
• DisAdv of Trade Deficit(imports exceeds the value of its exports)

  • Lack of Funds+Revenue
  • Slow Economic Growth
  • Unemployement
  • underdeveloped social sector eg health & education
• Factors that affect international trade

  • Trade Barriers eg tariff
  • Relief & Climate
  • Human & Eco factors ( transportation+industrial setup+foreign relation)
• Trading Blocs - A group of countries that have agreed to trade with each other. eg EU ( Germany+France)

  Advantages

  • Tariff Removed
  • Relaxed Visa Policy
  • One currency trade (euro)
  • Trade Relations Improve
  • Technology Transfer
• Purpose of WTO: To promote free trade and reduce trade barriers between countries.

  Q-How Pak can increase its export with trading blocs such as EU?

  • Value Added Goods
  • Quality Maintained
  • No Child Labour
  • No Damage to Environment
  • Good Transport System-to maintain supply of goods
  • Increasing Range of Export Goods
• GDP & GNP

  Gross Domestic Product:Total Value of goods & services with country in one year.

  Gross National Product:Total Value of services within the country and outside country contributed by citizens.

  GDP: Eco Indicator

  GNP:Total Income of Country
• Role of EPZ’s in increasing National Income

  • High Value Goods-expensive export+more income
  • Private Investors-set up plants so pay tax to govt
  • Infrastructure Develop eg transport+packing+security