Global Interdependence a Level
Global interdependence
Visible Imports: Physical goods which are imported into a country.
Visible exports: Physical goods which are exported.
Invisible imports: services (whatever you cannot touch is invisible eg: interests, funds inflows…) which enter a country.
Invisible exports: services provided by your country.
Balance of trade: income gained from visible exports- costs in paying visible imports.
Balance of payments: balance of trade including invisible earnings or costs.+
Trade surplus: earn more from exports than you lose from imports.
Trade deficit: earn less from exports than you pay from imports.
----Global inequalities in trade flows: awareness needed.?!?!?!?
Factors affecting global trade:
-Resource endowment:?!?!!?
-Locational advantage: countries which are closer to each other can trade between them easier as they might spend less on transport costs, resulting in being cheaper to trade.
-Historical factors: eg of colonial ties: UK with Canada , Australia, India, etc..
-Trade agreements: RTA (Regional trade agreement) eg: EU. There are groups which share economical and economical opinions/aims. The largest ones are: EU, NAFTA.
-Changes in the global market:?!?!?!?
[Comparative advantage?]
GATT and the World Trade Organization
GATT: General Agreement on Trade and Tariffs and its aim is to reduce tariffs and provide a forum for discussing problems of international trade.
Two main issues: -EU and USA had strong farming subsidies (difficult for LEDCs to export). - Japan and remainig G7 had discussions over tariffs. In 1995 GATT was fucked and replaced by the WTO(World Trade Organization)
WTP serves interests of developing countries in four ways (reasons why LEDCs became members):
1-facilitates trade reforms
2-provides a
Visible Imports: Physical goods which are imported into a country.
Visible exports: Physical goods which are exported.
Invisible imports: services (whatever you cannot touch is invisible eg: interests, funds inflows…) which enter a country.
Invisible exports: services provided by your country.
Balance of trade: income gained from visible exports- costs in paying visible imports.
Balance of payments: balance of trade including invisible earnings or costs.+
Trade surplus: earn more from exports than you lose from imports.
Trade deficit: earn less from exports than you pay from imports.
----Global inequalities in trade flows: awareness needed.?!?!?!?
Factors affecting global trade:
-Resource endowment:?!?!!?
-Locational advantage: countries which are closer to each other can trade between them easier as they might spend less on transport costs, resulting in being cheaper to trade.
-Historical factors: eg of colonial ties: UK with Canada , Australia, India, etc..
-Trade agreements: RTA (Regional trade agreement) eg: EU. There are groups which share economical and economical opinions/aims. The largest ones are: EU, NAFTA.
-Changes in the global market:?!?!?!?
[Comparative advantage?]
GATT and the World Trade Organization
GATT: General Agreement on Trade and Tariffs and its aim is to reduce tariffs and provide a forum for discussing problems of international trade.
Two main issues: -EU and USA had strong farming subsidies (difficult for LEDCs to export). - Japan and remainig G7 had discussions over tariffs. In 1995 GATT was fucked and replaced by the WTO(World Trade Organization)
WTP serves interests of developing countries in four ways (reasons why LEDCs became members):
1-facilitates trade reforms
2-provides a