Why is international trade increasing?

Economics and Business studies A2 Unit 3 with Edexcel "International Business". This explains why international trade has increased. Enjoy!

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  • 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

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