1.a Access To Markets

Question 1

What is merchandise?

Answer 1

All commodities or products (not services) available for sale that imports and exports through a countryAll imports and exports through a country

Question 2

What is merchandise measured on?

Answer 2

Customs

Question 3

What are the geographical inequalities of merchandise?

Answer 3

High export - more developed ( EU/Asia)
Low exports ( Africa)

Question 4

Values in figures of Africa exports

Answer 4

$379 billion

Question 5

Values in figures of europe and asia exports

Answer 5

Europe ($6301 billion) and Asia ($5703)

Question 6

Variation in Merchandise exports

Answer 6

Fuel and Oil - UAE and Middle Eastern countries
Agricultural products - EU

Question 7

How much more does EU make from exports of merchandise in comparison with eastern countries

Answer 7

708 billion in comparison to 33 billion TWENTY TIMES MORE

Question 8

What are services ?

Answer 8

Tradeable activities which rely on workforce skills and experiences in knowledge rather than processing materials

Question 9

What country is the largest exporter of services?

Answer 9

EU

Question 10

How much more is trade of merchandise worth more than trade of services and why?

Answer 10

15,041 billion dollars less than trade of exports

Question 11

How are the figures for services traded figured out?

Answer 11

They are derived from transactions in the balance of pay statistics.

Question 12

Who is the largest net importer of services / who is the largest exporter of services?

Answer 12

Importer- Saharan Africa ( through trade with ACs)

Exporters - EU ( mostly through intra - regional trade)

Question 13

Inequalities in the trade of services ?

Answer 13

AC exporters- EU /Asia .N America/china/Japan

Exports low - Africa

As these contrast in the ability to supply commercial factors

Question 14

In 2022 how much of world trade is services ?

Answer 14

23%

Question 15

Factors that cause the inequality in trade of services

Answer 15

• education
• skills of workforce
• govt
• private investment

Question 16

What is capital?

Answer 16

The result of purchases and sales of real and financial assets across national boarders

Question 17

What are financial assets / real asssets ?

Answer 17

Real assets —> physical or tangible items

Financial asssets —> intangibles (currency,stocks and bonds)

Question 18

In what direction does capital flow?

Answer 18

In the opposite to services and merchandise as these are being purchased

Question 19

What causes capital flows to increase ?

Answer 19

• interconnectivity of global trade (network widening with NEEs)
• Intra firm flows through MNCs

Question 20

What does FDI do ?

Answer 20

Creates stable and long lasting links between economies + driving force of globalisation

Question 21

Examples of capital flow around the world

Answer 21

• Large amounts of imports to ASIA AND AFRICA ( MNCs investment)
• Inward FDI to India ( develops ports/airports/highways)

Question 22

What is FDI ?

Answer 22

A business decision to take a stake in a foreign business to either buy it outright or expand its operations

Question 23

What is horizontal investment?

Answer 23

Company offers the same type of business in another country . ( US buying a phone chain in china)

Question 24

What is vertical investment?

Answer 24

A business acquires a complimentary business in another country.

( US manufacturing getting materials needed for manufacturing process)

Question 25

What is conglomerate investment?

Answer 25

Invests in a business that is unrelated - often in the form of a joint venture

Question 26

What is inter regional trade?

Answer 26

Flow of international trade among world regions .

Question 27

Inter regional trade USA —> UK how much of global flows does it account for

Answer 27

- Accounts for 30% of trade flows globally

Question 28

Whats the name for the inter - regional trade between North america and EU ?

Answer 28

Transatlantic trade and investment partnership TTIP

Question 29

What are the main exports between UK and USA?

Answer 29

Due to similar forms of manufacturing the exports are similar machines/ engines/ pumps /vehicles / air craft

Question 30

What is intra regional trade?

Answer 30

The flow of international trade within one of the major world regions

Question 31

Intra regional trade within the EU how many members are within this bloc?

Answer 31

- 28 member trading bloc

Question 32

in 2013 how much was EU trade in merchandise and services combines Billions?

Answer 32

3,777

Question 33

why does the EU trade bloc have a complex pattern?

Answer 33

Due to high level of intercontectivity of transportnetworks and the ease of financial transactions within the eurozone

Question 34

Features of the EU trading bloc

Answer 34

* single market economy, * trade defence policy which protects domestic industries, * lack of internal tariffs between members * increasing number of EU MNCs operating within the trading bloc * large demand from the 520 mil population

Question 35

Uk food and drink sector in relation to the EU

Answer 35

2014 UK exported 75% of its food & drink products to other EU states- milk to Ireland, wheat to Spain

Question 36

Economic factors affecting trade?

Answer 36

- physical infrastructure - transports cost - cost of production - technology/ communications

Question 37

Political factors affecting trade?

Answer 37

- trading blocs ’-trade agreements - tarrifs - Free trade areas

Question 38

Social factors affecting trade?

Answer 38

- demographic factors ( age/migration) - female empowerment - education levels

Question 39

Environmental factors affecting trade?

Answer 39

- Land locked - natural hazards - deep water ports - climate