Why is international trade increasing?
Economics and Business studies A2 Unit 3 with Edexcel "International Business". This explains why international trade has increased. Enjoy!
- Created by: rebecca
- Created on: 18-03-13 12:18
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- Why is international trade increasing?
- TRADE BARRIERS
- Past 60 years international trade has increased
- Exports grew on average by 6% annually
- Total trade in 2000 was 22-times the level of 1950
- WTO (WORLD TRADE ORGANISATION)
- Formed 1995
- Agreement on tariffs and trade
- 97% of world trade
- Help trade flow smoothly
- Helps developing nations with technical matters and training programmes
- Trade negotiations and agreements by resolving disputes
- FDI (FOREIGN DIRECT INVESTMENT)
- Trade barriers reduce=More production in other countries
- Most of FDI flows from one DEVELOPED country to a DEVELOPING country
- Associated with offshoring
- POLITICAL CHANGE
- Collapse of the Soviet Empire and communist rule in Eastern Europe (1989)
- Russia is one of the BRICs and has huge reserves of minerals and energy supplies
- BRICs = Brazilm Russia, India and China
- COMMUNICATION & TRANSPORT
- Easier and cheaper to communicate with other countries
- Containerisation has reduced transport costs (economies of scale)
- Cheap air travel and telecoms have made communication with markets and suppliers easy and cheap
- TRADE BARRIERS
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