Summary
Summary International Trade: Part Trade
- Course
- Institution
This is a summary of the content given in the Trade part of the course International Trade. It's based on the PowerPoint and class notes. I passed this exam first try.
[Show more]
Seller
Follow
JanaErtryckx
Content preview
INTRODUCTION: WHAT ISINTERNATIONAL TRADE
INTERNATIONAL TRADE
• Tariffs
• Financing
• Different transport mode
• Globalization
• Strategic choices
• Distribution and logistics
• Supply chain
• Payment methods
• Institutions and organization
• National differences
• Documents
• Risks
• Export and import
Trade = central to ending global poverty
➔ Role: supporting growth and reducing poverty
➔ Open trade policies enable economic growth for all
➔ Countries open to international trade grow faster, innovate, improve productivity and provide higher
income and more opportunities to their people
➔ Open trade: benefits lower-income households by offering consumers more affordable goods and
services
➔ integrating with world economy through trade and global value chains -> helps drive economic
growth and reduce poverty-locally and globally
CAN WE DO IT IN A SUSTAINABLE WAY?
• Different critiques on globalization
• Link with UN SDGs
• Trade resulted in increased CO2 emissions
• Always take triple bottom line into account: people, planet, profit (3Ps)
,CHAPTER 1: INTRODUCTION TO
INTERNATIONAL TRADE
WHY INTERNATIONAL TRADE?
Last centuries:
• Greater openness and liberalized trade
• But: protectionism has always immersed
• Advanced nations: realise economic growth and stability depend on strategic mix of trade policies
both free trade and protectionism
WORLD TRADE
• World trade volumes: 42 times level of 1950
• World trade values: over 302 times level of 1950
• Growth acceleration since establishment of WTO in 1995
Exports Imports
• Asia is growing fastest • Asia is growing fastest
• All regions are increasing but pace is • South America is decreasing imports
different
AFTER COVID-19
• US still leading
• China not far behind
• Germany far ahead from other EU countries
• First South-American country: Brazil
• First African country: South-Africa
Impact on covid 19:
• Big decrease in first half of 2020
• Steady recovery since second half of 2020
IMPORTANT CONCLUSIONS
• Global trade concentrated in few countries
• Leading exporters = leading importers
• Leaders often Western Industrialized Countries
− China and Far East: growing
− South America: only Mexico and Brazil in top 30
− Africa not in top 30
− Belgium decreased but sill high
,BIGGEST ECONOMIC PLAYERS
US
• Discussion with China and EU led to increased import taxes for wide range of products (Eg airplanes,
cars, …)
• Impact of polarization
• Different opinions regarding climate policy, fiscal policy and foreign policy
CHINA
• Soon to be biggest economy in the world
• Trade between China and EU = 1 billion USD per day
• Questions regarding human rights and environmental policy
• Biggest companies in hand of state (the Communist party)
BRICS COUNTRIES
RUSSIA
• Before war in Ukraine: fifth biggest trading partner of EU
• Export mainly dependant on natural resources
BRAZIL
• Depends on export of coffee, sugar, beef, concentrated orange juice, soy, chicken, shoes, iron and
steel, chemical products and wood
• Fourth biggest builder of airplanes which focusses on production of smaller-sized jets
INDIA
• Most important export products: engineering components, chemical and pharmaceutical product,
gems and jewellery, clothing, agricultural products, iron and mineral
• Second biggest exporter for agricultural products and related sectors like forestry
• IT-sector also booming because of cheap labour and good infrastructure
SOUTH AFRICA
• Most important export products: iron ore, platinum, gold and other minerals
, BELGIUM’S STATUS
• 2021: 10th position on list of world merchandise exporters + 12th world merchandise importer
• 5th place in Europe
• Behind Canada and before Mexico
• Balance of trade = primarily positive
• Distribution of trade by trading partner
• EU main trading partner:
− Majority of goods exported by Belgium remain in Europe
− Especially neighbour countries: (Germany, France, The Netherlands)
• Outside EU-countries
− US main non-European trading partner
− China, UK, Japan, Switzerland, Turkey and Russia
Important chemicals for Belgian export Important mineral products for Belgian export
• Packaged medicaments • Refined petroleum
• Vaccins • Diamonds
• Blood, antisera, toxins and cultures • LNG to rest of Europe via harbour of
Zeebrugge
Import/export sector:
• Large variety
• Almost 30% of exports are chemicals and pharmaceuticals = main export products
• Transport equipment + machinery and equipment = >22%
• Important: 11,2% mineral oils
• Foodstuff: 5,5% export, 3,9% import
• Textile sector also important although strong competition abroad
➔ Decreased over last few years
➔ Especially carpets and fabric for furniture and floor coverings
DID YOU KNOW?
2017:
• 1st world exporter of master alloys of copper, frozen vegetables, looms
• 2nd world exporter of flax
• 3th world exporter photographic in film rolls
• 4th world exporter of diamonds
• 5th world exporter of epoxides, …
Belgium is considered 3th best country in the world when it comes to logistics
WHY DOES BELGIUM HAVE AN OPEN ECONOMY?
• Central location
• High population density
• Scarcity of natural resources
• Centre of Belgian economy = processing foreign goods and export them
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller JanaErtryckx. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.79. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
53068 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now