A-Level Geography - Human - International Trade
- Created by: Noah_S
- Created on: 08-04-22 14:11
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- International Trade
- Impacts
- Advantages
- Trading blocs allows countries access to all of the markets of the other member countries
- Special and Differential Treatment (SDT) agreements let LICs bypass HIC tariffs
- The EU's 2001 Everything But Arms Agreement let LICs export some products to the EU without tariffs
- Profits from SDT agreements allow LICs to diversify and introduce new industries
- People in countries with better market access benefit
- See more economic growth as they can trade more, making their citizens wealthy and develop high-tech industries
- People have access to high-paid jobs, giving them more disposable income and increasing standard of living
- Disadvantages
- HICs put up tariffs, which makes it harder for LICs to access their markets
- Also applies to trading blocs, which LICs may have to put high tariffs to export their goods to the bloc's market
- Countries with poor market access have trouble establishing new industries
- Due to tariffs when they try to sell abroad, making their products uncompetitive
- Makes them dependent on selling low-value primary products, so they have less money to invest in their industry and have slow growth
- Countries with less market access have les money available for services like education
- HICs put up tariffs, which makes it harder for LICs to access their markets
- Advantages
- Changes
- Investment
- The volume of FDI rose dramatically from about $400 billion in 1996 to $1500 billion in 2016
- Before the 1980s, HICs invested in HICs with FDI
- After the 1980s, HICs started to invest in NEEs and LICs
- China received $173.48 Billion in 2021
- India received $60.3 Billion in 2021
- NEEs have also started to invest in LICs
- China invested $4.23 Billion in African countries during 2020
- Ethical investment, where investors avoid companies that cause environmental / humanitarian harm, has grown
- The amount of ethical investment by US companies tripled between 2005 and 2016
- Trade
- In 1948, world exports were valued at $59 Billion
- 31,000 % increase in global exports
- In 2013, world exports were valued at $18,301 Billion
- 31,000 % increase in global exports
- HICs remain the biggest global traders, but some NEE's are catching up
- China is now the largest exporter in the world due to its manufacturing sector
- LICs growth is slow
- In 1995, African countries accounted for 2% of trade
- In 2010, African countries accounted for 3% of trade
- Barriers have been removed for trading
- Trading blocs have played a part in this, where countries remove barriers for trade in their bloc
- Rise in fair trade, supporting people in LICs that trade with HICs
- There were nearly 1900 fair trade producer organisations in 2020
- In 1948, world exports were valued at $59 Billion
- Investment
- Impacts
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