Staying Connected: Global Groupings

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Global Connections and Future Connections

  • World Trade is dominated by three regions - North America, Europe and Asia - which produce the most goods, control the most tradeand absorb most invesment
  • In 2001, these three generated 85% of the world's manufactoring output and 81% of exports
  • India desgins and innovates and China manufactures. The two economies collaborate. Constant updates in technology means that many TNC's are having their products designed in India and made in China
  • Every year, a million engineers and scientists graduate from college in the two countries
  • Fast broadbad links make the distance between India's low-cost laboratories and China's massive low-waged factories irrelvant - the two create "Chindia" 
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Regional Connections - Trading Bloc's

  • A trade bloc is where countries group together to improve their economic intrests and trade patterns 
  • There are a number around the world; the EU, NAFTA, ASEAN and OPEC
  • They usally group together in geographical areas, and encourage trade within the bloc by removing tariffs or duties on goods for members (e.g. for UK residents buying alchol in the EU), and creating barriers to outsiders by placing tariffs on goods from the outside
  • Trade bloc's are especailly helpful for NEDC's (Newly Economically Developed Countries) such as Thailand because they have garanted trade with MEDC's like Japan 
  • Some argue that because trade bloc's only encourage trade within the countries within the group it lows the development of a global economy 
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