Trade Cotton
COTTON University of Wolverhampton International Business Management Global Business Commodities Rustam Nabizade (1122924)
COTTON University of Wolverhampton International Business Management Global Business Commodities Rustam Nabizade (1122924)
Cotton is a major fibre crop of global importance and has high commercial value. It is grown commercially in the temperate and tropical regions of more than 70 countries. Specific areas of production include countries such as China, USA, India, Pakistan, Uzbekistan, Turkey, Australia, Greece, Brazil, Egypt etc. where climatic conditions suit the natural growth requirements of cotton, which includes periods of hot and dry weather and adequate moisture obtained through irrigation. Cotton is harvested as ‘seed cotton’ which is then ‘ginned’ to separate the seed and lint. The long ‘lint’ fibres are further processed by spinning to produce yarn which is knitted or woven into fabrics.
Trade theories
International Trade * All economies, regardless of their size, depend to some extent on other economies and are affected by events outside their borders. * The “internationalization” or “globalization” of the U.S. economy has occurred in the private and public sectors, in input and output markets, and in business firms and households.
The Economic Basis for Trade:
Comparative Advantage * Corn Laws were the tariffs, subsidies, and restrictions enacted by the British Parliament in the early nineteenth century to discourage imports and encourage exports of grain. * David Ricardo’s theory of comparative advantage , which he used to argue against the corn laws, states that specialization and free trade will benefit all trading partners (real wages will rise), even those that may be absolutely less efficient producers.
Mutual Absolute Advantage * Suppose that each country divides its land to obtain equal units of cotton and wheat production. TOTAL PRODUCTION OF
COTTON University of Wolverhampton International Business Management Global Business Commodities Rustam Nabizade (1122924)
Cotton is a major fibre crop of global importance and has high commercial value. It is grown commercially in the temperate and tropical regions of more than 70 countries. Specific areas of production include countries such as China, USA, India, Pakistan, Uzbekistan, Turkey, Australia, Greece, Brazil, Egypt etc. where climatic conditions suit the natural growth requirements of cotton, which includes periods of hot and dry weather and adequate moisture obtained through irrigation. Cotton is harvested as ‘seed cotton’ which is then ‘ginned’ to separate the seed and lint. The long ‘lint’ fibres are further processed by spinning to produce yarn which is knitted or woven into fabrics.
Trade theories
International Trade * All economies, regardless of their size, depend to some extent on other economies and are affected by events outside their borders. * The “internationalization” or “globalization” of the U.S. economy has occurred in the private and public sectors, in input and output markets, and in business firms and households.
The Economic Basis for Trade:
Comparative Advantage * Corn Laws were the tariffs, subsidies, and restrictions enacted by the British Parliament in the early nineteenth century to discourage imports and encourage exports of grain. * David Ricardo’s theory of comparative advantage , which he used to argue against the corn laws, states that specialization and free trade will benefit all trading partners (real wages will rise), even those that may be absolutely less efficient producers.
Mutual Absolute Advantage * Suppose that each country divides its land to obtain equal units of cotton and wheat production. TOTAL PRODUCTION OF
References: Online: http://boyceca.com.au/default.asp?menu=AAAAAC&pagetype=content&pageid=QZOIIK (13.12.2011) http://www.cotlook.com/ (13.12.2011) http://www.napcsyr.org/dwnld-files/working_papers/en/21_cotton_comp_advantage_rsh_en.pdf (10.12.2011) http://www.scribd.com/doc/22275400/5-Trade-Theories (13.12.2011) Textbook: James Rauch (2008). "growth and international trade," The New Palgrave Dictionary of Economics. 2nd Edition. Abstract Lipsey & Chrystal, Economics, Oxford University press 2011, chapter 27, p 625, 639 Markusen, J. R, International trade: theory and evidence, 1995, xxiii, 471p Parkin, Economics, 6th edition, chapter 19, p 434-452 Takayama, Akira, International trade: an approach to the theory, 1972, xxi, 586p Journal: