INTERNATIONAL TRADE. TRADE WITH TWO OR MORE COUNTRIES. REASONS FOR FOREIGN TRADE. different natural resources climate geographical position different capital resources - factories - machinery - roads / infrastructure.
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TRADE WITH TWO OR MORE COUNTRIES
- roads / infrastructure
resources are put to their best possible
use - the highest productivity, the ability to produce more of a good or service than any other country
low-cost production – countries produce
more cheaply than others
leads to destruction of industries and jobs
in other countries
from international competition
PROTESTS AGAINST GLOBALISATION
2. QUOTAS- the limited amount of goods
3. SUBSIDIES – money paid by the government to reduce the cost of producing goods to keep prices low
5. EMBARGO - official order to prevent trade with another country
(selling large amounts of goods in a particular
country at unfairly low prices)
goods sold / bought
food, cars, books, furniture….
Services / investments
banking, education, tourism,
The difference between a country’s visible imports and exports.
The balance is favourable (in surplus) when exports are higher than imports.
The balance is adverse (in deficit) when imports are higher than exports.
A record of all transactions –
goods and services and investments –
between one country and the rest of the world over
a particular period.
visible + invisible trade
It shows whether the country is making a
profit or loss in its trade
Visible imports -47 322
Balance of trade – surplus + 1 118
Visible exports +47 322
Visible imports -48 440
Balance of trade - deficit - 1 118
1. The _____________________has established rules of trade between nations.
2. A country exporting more than it imports has a trade ____________________ .
3. Countries that export a lot of oil tend to have a positive ________________________
4. A limit to the quantity of goods that can be importde is a _______________________.
5. The import and export of goods is called the _________________________.
6. Producing in large quantities becomes cheaper because of economies of _________
7. „The world is one big market“ . This is one way of describing __________________.
8. The absence of trade barriers is known as ____________________________ .
9. Import tariffs and quotas are types of _________________________.
10.Buildings, roads, railway lines, telephone netwirks and power supplies are all part of a
11. If government expenditure is higher than government income, the result is a
12. European farmers receive large sums of EU money in the form of________________
Trade Justice - why world trade rules need to change