trade Flashcards
(117 cards)
1
Q
what are commodities
A
a good or material (not a service) interchangeable through trade or commerce, such as raw material
2
Q
what are terms of trade
A
value of a country’s exports relative to that of its imports.
this is measured as: average price of exports / average price of imports x 100
if exports rise relative to import prices, there is improvement in a country’s terms of trade
3
Q
what is merchandise?
A
merchandise are goods, products or commodities available for sale
can be basic food products of low value through to high value goods such as cars or diamond rings
4
Q
what are services?
A
tradeable activities which provide expertise based on skills, experience + knowledge.
producer services often include financial + legal services
consumer services include education or health care
5
Q
what is capital?
A
accumulated wealth of any kind used in producing more wealth; this may include tangibles such as machinery, buildings, land, and intangibles such as money, investment, finance or company stocks
6
Q
what is outsourcing
A
cost saving strategy where a company that has comparative advantage provides goods or services for another company even though they could be produced in house
7
Q
what is a balance of payments?
A
difference between a country’s inflows and outflows of money, including al transactions with the rest of the world for goods and services, flows of FDI and migrant remittances, over a period of time
8
Q
what is an AC?
A
countries that share a number of important economic characteristics, including well-developed financial markets, high degrees of financial intermediation and diversified economic structures with rapidly growing service sectors
9
Q
what is an EDC?
A
countries that do not share all the economic development characteristics required to be advanced, and also are not eligible for the Poverty Reduction and Growth Trust, identified by the IMF
10
Q
what is an MNC?
A
a firm with the power to coordinate and control operations in several countries
11
Q
what are global supply chains?
A
flows of materials, products, information, services and finance in a network of supplies, manufacturers, distributors and customers around the wolrd
12
Q
what is Foreign Direct Investment (FDI)
A
inward investment by a foreign company (usually a large TNC) in a country
13
Q
what is comparative advantage?
A
the principle that countries or regions benefit from specialising in an economic activity in which they are relatively more efficient or skilled
14
Q
what are economies of scale
A
internal economies of scale are savings in unit costs that arise from large scale production, derived from within a plant
external economies of scale are savings made by a firm that arise from outside the firm itself, such as benefits of proximity to other firms or infrastructure
15
Q
what is an economic multiplier?
A
an economic factor that, when increased or changed, causes increases or changes in many other related economic variables
16
Q
what are human rights norms?
A
established customary behaviour based on moral principles and ways of living inculcated into the culture of a country or area over a long period of time
17
Q
what is the development gap?
A
difference in prosperity and well-being between rich and poor countries.
this could be measured, for example, by GDP per capita and HDI
18
Q
what are some examples of inequalities regarding merchandise exports globally?
A
asia now has over fifteen times the value of merchandise exports than africa
moreover, values for Europe are over eleven times those of South and Central America
19
Q
what are examples of inequalities regarding the COMPONENTS of merchandise exports between the regions
A
exports of agricultural products from Europe are more than ten times those of both Africa and the Commonwealth of Independent States, and more than thirty times those of the Middle East
Exports of manufactured goods from Asia are nearly 45 times greater than those of Africa
20
Q
which region is the largest net exporter of commercial services?
A
europe
however, much of this type of trade in Europe is intra-regional, in particular between the countries of the EU
at the other extreme, African countries, especially sub-saharan, are overall net importers of commercial services, mainly through trade with ACs and EDCs
21
Q
what are real assets
A
include physical or tangible items that are traded, such as commodities, minerals, land and real estate
22
Q
what are financial assets
A
the so-called intangibles such as currency, stocks and bonds, which can be traded on the world’s financial markets
23
Q
what is a significant feature of global capital flow regarding MNCs?
A
most capital flows are intrafirm, especially within the MNCs
in these very large enterprises, goods, materials and semi-finished products flow between parent companies and their subsidiaries through global supply chains. and the consequent financial transactions are often completed by accounting within the company
24
Q
what is inward FDI in India due to?
A
inward FDI in India is mainly the response to active encouragement by the Indian government:
- treaties between India and Mauritius and Singapore enable companies located in these countries to avoid high taxation, for example, under the Double Tax Avoidance Agreement. The high value of investment from Mauritius, a relatively poor country, is explained by large companies based there which invest in business and services in India. These include Cairn UK Holdings, Oracle Global, TMI and Vodafone
- India needs FDI to help overhaul its infrastructure of ports, airports and highways. FDI norms including rules and constrictions regarding inward investment have been relaxed in sectors such as defence, oil refining, telecom etc
- The Foreign Investment Board has raised inward ceilings. This has increased FDI in the service sector for private insurance companies, financial investment companies and communication, business and computer services, mostly by outsourcing
- The Reserve Bank of India has facilitated transactions required for mergers, takeovers and new investment
25
what is inter-regional trade
the flow of international trade among major world regions such as Europe, North America and Asia
for example there is a long established transatlantic trade relationship between Europe and NA
26
what are the world's largest trading partners by value of merchandise, services and capital?
the EU and the USA are the world's largest trading partners by value of merchandise, services and capital
total trade between the two accounts for nearly a third of global trade flows
27
what is intra regional trade
the flow of international trade within one of the major world regions such as Europe or Asia
most international trade is intraregional
28
why is intra regional trade within the EU complex?
the complexity is the outcome of changing patterns and trends of trade flows in many diverse merchandise, services and capital products between 27 member states
29
what is trade like between germany and its EU trading partners?
in 2018 Germany maintained its position as the third largest exporter. this was largely due to its trade with the EU (59.1% of German exports), and represented an increase in German-EU trade from 2017
at 57.2%, the EU was also the largest source of German imports, which was also a slight increase on 2017
the high value of german trade within the EU is a result of the free trade agreement that exists between EU members which makes trade between member nations more attractive compared to non EU regions, where trade may be open to tariffs
30
what are economic factors influencing contemporary patterns of international trade?
physical infrastructure including transport
technology including communications
transport costs
cost of production
FDI
speed of border formalities, eg documentation/use of ICT
31
what are social factors influencing patterns of international trade?
demographic factors which affect labour force and import demand including age structure and migration
stage in demographic transition
female empowerment/ women in the labour force
levels of education
32
what are political factors influencing contemporary patterns of international trade?
supranational organisations
regional trading blocs
national government policy
trade agreements/ market integration
tariff/non-tariff barriers
free trade/ free trade areas
governance/transparency of customs authorities
33
what are environmental factors influencing contemporary patterns of international trade?
distribution of natural resources including oil and mineral ores
climate/soils/water scarcity (affecting food and agricultural products in international trade)
deep water ports
natural hazards
34
what is the relationship between value of exports and HDI?
positive relationship
**however, china's HDI is lower than might be expected for a country with such high value of exports, but overall value of exports is high for more developed and lower for less developed countries**
35
what is the Aid for Trade initiative?
The WTO launched the Aid for Trade Initiative in 2005 to help developing countries expand in their trade
in 2013, this was reinforced the Bali Ministerial Conference
This has been designed to assist the least developed countries integrate better into a multilateral free trading system
36
how can international trade promote stability?
trade encourages states to co-operate; multilateral trade agreements can contribute to economic and political stability
some bilateral agreements extend beyond trade to assistance in political issues such as strengthening democratic processes and human rights, which create a more stable environment for foreign investors
37
how can international trade promote economic growth
trade stimulates production, contributes to GDP growth and further investment, including FDI
employment opportunities are created, incomes are raised and poverty levels reduced
the economic multiplier can be enhanced by international trade at national, regional and local scales
38
how can international trade promote development?
removal of tariffs and other obstacles to LIDC trade help generate foreign exchange which can be invested to reduce internal inequalities in poverty, health, education, infrastructure and transport
corporate responsibility of MNCs can be of economic and social benefit
membership of trade and political unions with a common purpose can help socioeconomic development
39
why are flows of people important factors in economic growth and development at all scales?
the flow of people is an important channel for circulation of ideas and information, especially within NA and Europe, and it is also significant for many EDCs
For example, migrant scientists and engineers from China and India employed in Silicon Valley, California, share info on tech development with colleagues in their native countries
also, the 'brain drain' from LIDCs has an effect on flows of origin and disseminate acquired knowledge
40
how has technology helped to improve trade?
speed of movement of merchandise through customs has been significantly increased, and corruption has been reduced under border controls which benefit from electronic messaging and data storage and retrieval systems
exporting has been made simpler, quicker and cheaper by the use of online currency trading platforms which allow financial balances to be held in many different currencies
the logistics of tracking of products is easier using cloud based platforms which are capable of monitoring incidents in supply chains around the world
improved cyber security helps to protect info systems from theft or disruption
the prevalence of mobile phones has allowed the increasing trend for online money transfers
41
how does technology reinforce global inequalities in international trade?
access to tech is unequal across the world
for example, the huge investment in new technologies for handling large-scale shipping at ports in rich countries, and the limited access to these facilities for poorer countries, reinforce global inequalities in international trade
42
why is international trade spatially uneven?
inequalities, conflicts and injustices are related to unequal flows of people, money, ideas and technology associated with the global trade system
43
how does international trade cause inequalities?
many LIDCs have limited access to global markets; this widens the development gap
skilled workers, especially men, tend to benefit the most from employment opportunities created by trade
in many LIDCs internal equalities are exacerbated by trade activity, often spatially concentrated in ports
44
how does international trade cause conflicts
trade disputes can arise over tariffs, prices of commodities and changes in trade agreements
border and customs authorities can be subject to corruption and breaches of security
port development, mining and deforestation linked to trade create environmental conflicts
45
how does international trade cause injustices?
displacement of communities can result from land grabbing by investments in industry and agri business
use of child labour and other forms of modern slavery in attempts to secure cheap labour
unequal power relations, unfair trade rules such as tariffs and other trade barriers and opening up to free trade **can adversely affect businesses such as small scale farmers or fishermen in LIDCs**
46
what is land grabbing
a process whereby rich countries acquire land in poorer countries
47
what are global supply chains and why are they important
global supply chains involve flows of materials, information and finance in a network of customers, suppliers, manufacturers and distributors.
increasingly, LIDCs are becoming integrated into global supply chains. this has increased the connectivity of countries of all economic status and their corporations within the global trade system. supply chains are therefore of fundamental importance in international trade
48
what are the three pillars recognised by the World Economic Forum and the OECD, which ease market integration at every stage of the supply chain?
enabling use of ICT
investing in transport and trade related infrastructure
improving information availability
49
what is a global value chain
where value is added to the product by the processes at each stage, often in different parts of the world
50
what are the risks for companies involved in global supply chains
ensuring the quality of the product itself
political and economic instability
natural hazards
customs issues
terrorism and piracy
cyber crime
ethical issues such as the use of child labour
51
what is the DP World Gateway Port in Thurrock like?
The DP World Gateway has invested heavily in:
- a state of the art new deep sea port new deep sea port with berthing and gantries capable of handling of the largest of container ships
- a logistics port with space for customisable warehousing and logistics companies
- modern computer systems for transhipment of containers
- road links to the UK motorway network
- new rail links including the UK's longest rail terminal
thurrock is now one of only a handful of ports in the world that can accommodate vessels such as the HMM. This container ship was built with the intention of sailing between China, South Korea and Europe with a capacity of 24,000 TEUs
52
what is international trade dominated by
MNCs
the top 500 MNCs account for over 70% of flows of goods, services and capital
53
what are the advantages of MNC operations in host countries
provide inward investment and create jobs for local people
increase incomes and raise living standards among employees
boost exports and improve the trade balance
develop and improve skills levels and expertise among the work force, and technology and process systems among local firms
increase spending and create a multiplier effect in local economies
may attract related investment by suppliers and create clusters of economic activity
54
disadvantages of MNC operations in host countries
**competition could lead to closure of domestic firms**
**exploitation of work force especially in LIDCs, with poor working conditions and low wages**
**environmental pollution which governments tolerate to attract investment**
lack of security, with closure of operations as lower-cost locations attract investment elsewhere
in many LIDCs and EDCs jobs are mainly low skilled and labour-intensive industries eg electronics and clothing
lack of control, with key decisions that have important economic implications for a country taken overseas at company HQ
55
what country is the world's major destination of outsourcing contracts
India
especially in the provision of services of large MNCs
56
what is bangalore?
india has five of the top twenty cities in the global list of outsourcing destinations and overall employs 10 million people in Information Technology Outsourcing
Bangalore is the largest of these cities in India, with 40% of India's IT industry, including over 500 companies and accounting for around US$85 billion in exports annually
57
what are the reasons for the concentrations of India's IT industry in Bangalore
many nearby educational institutions which have provided a skilled, professional work force in IT
the ability to rapidly interchange information and knowledge about best practice and market opportunities
lower costs of providing infrastructure in one locality rather than it being dispersed
the ability to raise the market profile from a recognised specialist location
positive government incentives for investment
the widespread fluency of the English language among the work force
relatively low labour costs
58
what are the largest regional trade blocs?
the EU, the NAFTA, the ASEAN, and Mercosur.
59
what are the purpose of regional trading blocs?
their purpose is to achieve economic benefits for their member states through trade policies including:
- encouragement of intra-regional free trade between member states by removing tariffs
- **protection of manufacturing and service industries from foreign competition by using tariffs and subsidies**
- entering into inter-regional trade agreements with other countries/trade blocs
60
what is the effect of regional trading blocs on global trade?
the volume of intra-regional free trade has ensured that trade blocs are responsible for most of global trade
their negotiating power, trade agreements and defence of trade have been strong influences on the direction, composition and volume of inter-regional trade
61
what is the largest economic and political union>
| + how much of world trade its responsible for (2019)
the EU, with 27 full member states and a total population of 445 million
in 2019, it was alone responsible for over 15% of world trade
62
what is a single market
an economic union of countries trading with each other without any internal borders or tariffs
63
what is the EU's trade defence policy (and what are the benefits to EU manufacturers)
the opening up of global markets to free trade is recognised as means of achieving economic growth and development. but when 'price-dumping' occurs, ie very low prices for imported goods, the EU imposes import duty on those goods.
**this protects EU manufacturers, allowing them and their subsidiaries to stay in business, maintain jobs and compete fairly**
64
what is the EU's trade and development policy
this is designed to improve trade links between the EU and LIDCs
many of the poorest countries are being held back by lack of access to global markets. **since 2014 the EU has adopted a system of preferences for developing countries and specific imports from them by tariff reductions**
65
what are the EU's Free Trade Agreements like?
it is in the process if establishing FTAs with some of its eastern neighbours such as Ukraine
there are agreements with a range of countries in Latin America, the southern Mediterranean, Africa, the Pacific, and South East Asia including Singapore and South Korea
the EU-South Korea FTA established in 2011 helped to increase trade between the two by 35% in the first year
66
how has the EU developed trade partnerships
the EU-USA Transatlantic Trade and Investment Partnership (TTIP) is an important arrangement under negotiation between the EU and its biggest trading partner
**this removes trade barriers such as customs duties and restrictions on investment on each side of the Atlantic in order to further boost economies, create jobs and lower prices**
67
what are the benefits of countries joining the EU
memberships brings the prospect of unfettered access to the EU markets, plus the benefits of free flow of labour, capital, technology, and information
it also gives access to the EU Structural and Cohesion funds with the chance to improve quality of life
68
how has romania benefitted from joining the eu
after more than 14 years of membership, economic growth has continued to accelerate
exports increased from US$57 billion in 2012 to US$76.0 billion in 2019 as industrial output connectivity and trade relations strengthened
69
what has the growing trend of south-south trade been spurred by
rising demand in fast-growing china and india for raw materials and energy to fuel their development
the vast size of the potential customer market in asia and latin america
increasing demand from the growing middle class of countries such as Brazil, China and India
intra-regional trade between emerging nations and their immediate neighbours often within a trading bloc
growth in FDI, especially from China and India into other developing countries of Latin America and Africa
70
what is the trend in growth in trade in services globally compared to trade in merchandise
since 2000, international trade in commercial services has expanded more rapidly than trade in merchandise
in 2019, the value of world merchandise exports shrank by nearly 3% while export of commercial services grew by nearly 2%
in 2017, the World Bank estimated that the trade in services accounted for one quarter of world trade
71
what has the expansion of commercial services from the least developed countries been fuelled by?
by the expansion of travel services in new tourist destinations in Asia and Africa such as Cambodia and Uganda
and by the emergence of ICT services in new locations such as Bangladesh
72
what is the New International Division of Labour (NIDL)
is the term used to describe global reorganisation of production in the last 40 years
it is associated with the global advance of MNCs and deindustrialisation in advanced economies
this had produced a broad pattern of higher paid managerial jobs and research and development in ACs, and lower paid labourers involved in manufacturing in LIDCs
73
example of NIDL? (and what its success is based on)
an example of this type of reorganisation in 2014 was the opening of JCB's biggest factory in Jaipur, India
this investment takes advantage of the Indian government's plans for construction and road building to help boost its domestic manufacturing
**the success of this new venture is based partly on the plentiful labour supply with a range of differing skill levels and the relatively low costs**
74
what are the factors influencing international labour mobility
government policy
effectiveness of border control
demand for labour such as in construction in the Middle East
prospects of higher and regular wages which can be sent home as a migrant remittance
modern in slavery in which labour is exploited and often in restricted in movement
relative ease of labour migration within trade blocs
75
what are the main merchandise exports of india
include refined petroleum, engineering goods, chemicals, pharmaceuticals, gems, jewellery, agricultural products and clothing
76
what are the main merchandise imports of india
include crude oil, gold and silver, machinery and electricals
77
what is import substitution
promotion and development of industries within a country aimed at reducing manufacturing imports
78
what policy did india operate under until the early 1990s
until the early 1990s India adopted a trade policy of import substitution, with high tariffs on imported goods plus restrictions on foreign investment to protect its domestic agriculture and manufacturing industry
79
what are india's trading policies like now?
since the 1990s India's policies have been more liberal, and it is forging strong relationships with its trade partners
it is now one of the world's largest exporters of merchandise services and capital, and one of the fastest growing economies
80
what was the average GDP growth of India in 2019
5.3%
81
how has india's economy changed since reforms began in the early 1990s?
| (how has its global share of x changed)
during this period, India doubled its global share of merchandise exports, and share of services exports increased fivefold
82
who was india's biggest trade partner in the financial year 2019/2020
china
the value of india's merchandise exports to China was US$18.8 billion, and China's exports to India US$27 million
**there are over 100 Chinese companies in India and 165 Indian firms in China**
83
what have the economic impacts been regarding china and india's bilateral trade relationship
is one of growing economic importance
**has contributed to growth in GDP, further investment and employment opportunities and the raising of incomes at all levels**
84
political impacts of china and india's bilateral trade relationship
there is increasing political confidence
the two governments, although in competition, have common goals of improving living standards, and sharing information and best practice regarding domestic economic issues
there are still lingering border disputes but the improved trade relations have helped in stabilising political conflicts
85
how has the bilateral trade relationship between china and india impacted the environment
in the past India and China have been in conflict over environmental issues such as water supply, deforestation and land degradation in Himalayan border areas
but, recently, there has been joint monitoring and investigation of these problems
for example, trans-border rivers such as the Brahmaputra are important to the socioeconomic development of both countries. china now provides india with flood-season hydrological data **and there are the beginnings of co-operation over emergency flood management in this basin**
86
what is the trading relationship between uk and india
the UK is a long-standing trade partner of India
over 70 years after independence, India and the Uk have a strong interdependent relationship
the **UK Trade and Investment government body** is currently working with the Indian government to improve business links so that UK companies can succeed in India and Indian companies can invest in the UK
87
how does india's socioeconomic development correspond to growth in its share of the world's merchandise exports?
HDI has increased from 0.483 in 2000 to 0.645 in 2020, whilst share of merchandise has more than doubled in the same period
88
what are examples of growth stimulated by international trade around the large ports in india?
eg the automobile industry at Chennai
the multinationals GM and Ford, and major Indian companies such as Ashok Leyland (commercial vehicles) and Tractors and Farm Equipment, are all able to trade in vehicles and components by shipping at this port
ancillary industries have been attracted to the region and overall this has had the effect of contributing to GDP and stimulating the economic multiplier throughout the state of Tamil Nadu
89
how has the success of India's trade and domestic policies been partly responsible for its political stability in the last decade
the growth in India's share of global trade and the development of its trade partnerships have been driven by government policies, such as:
- creation of an open market economy including privatisation of SOEs
- trade liberalisation
- growth in inward and outward FDI
- investment in education, producing a skilled and educated work force
- investment in infrastructure and technology for transport and communications
- development of global trade agreements
90
how has increased trade impacted inequalities in india
inequality is often the result of economic growth. however, for india, the Gini coefficient has come down from 36.8 to 33.6 in recent years, and these figures compare favourably with other emerging economies
nevertheless, there are still great inequalities within India's urban areas, between urban and rural areas, and between regions in terms of health, nutrition, education, poverty and gender
91
what was japan's gdp in 2019
in 2019 the International Monetary Fund estimated that Japan's GDP would be over US$5 trillion (the third highest nation behind the USA and China)
92
what was japan's population in 2018 + its labour force?
population of 126.5 million
labour force of some 68 million
93
how much did the service sector contribute to Japan's overall GDP in 2018?
68.7%
94
who does japan have strong trade relationships with?
it has strong trade relationships with China, the USA, South Korea and Australia, and has strong trade relationships with many other economies in South America, Europe and Southeast Asia
95
who is japan's top trading partner
**china**
this is one of the world's largest bilateral trade relationships, with **US$603,000** in goods and services traded **every single minute**
trade in electrical machinery (such as electric motors and generators) is just one important category of Japanese imports from China
96
what was the FDI between china and Japan like in 2018
china FDI outflow to Japan totalled US$468 million
whereas japanese outflow to China was US$3.81 billion
97
who is Japan's second largest trade partner?
the USA
it has a large trade surplus with the USA for merchandise but has a trade deficit with the USA for commercial services
98
what is FDI like between Japan and the USA?
Japanese FDI in the USA in 2018 was US$489 billion, mainly in eg auto components, industrial equipment etc
US FDI in Japan is relatively small at US$ 125 billion, mainly in finance and insurance
99
what are the economic factors contributing to the strength of japanese trade
inward and outward FDI often by large MNCs
technology in communications including high levels of broadband connectivity
strong demand from a large domestic market
domestic investment in industry and infrastructure such as highways, airports, ports and energy
adversarial model of business
nationalistic philosophies concerning business
innovative use of technology in industry
100
what are the environmental factors contributing to the strength of japanese trade
extensive coastline with natural harbours and access to rich fishing grounds
geo-located close to large international markets in Asia, North America, and Australasia
101
what are the political factors contributing to the strength of japanese trade?
stable, democratic government, which has the ability to negotiate trade agreements providing easy access to global markets
membership of global organisations such as the WTO, OECD, GATT and regional bodies such as APEC which promotes free trade throughout the Asia/Pacific region
102
what are the social factors contributing to the strength of japanese trade
large population/work force with high levels of entrepreneurship
highly skilled and educated work force
social traditions and values commensurate with an industrious economy
103
what are the opportunities for japan created by international trade regarding job creation
a significant number of jobs in Japan are dependent on the international trade of goods and services
104
what are the opportunities for japan created by international trade regarding investment
investment leads to cumulative causation described by the economic multiplier effect. This leads to economic growth at a variety of scale and, in time, to overall sustained economic development
105
what are the opportunities for japan created by international trade regarding relations between countries
relations between countries can develop beyond economic to include improved political relationships, cultural understanding, cooperation over security and defence, and stewardship of the environment.
this benefits countries such as Indonesia through the Japan International Cooperation Agency (JICA)
106
what are the opportunities for japan created by international trade regarding the economic integration of LIDCs into global supply chains?
ACs such as Japan can have a global influence by encouraging the economic integration of LIDCs into global supply chains
for example, **the projects of Japan's Official Development Assistance (ODA) in economic growth and trade in Southeast Asia**
107
what are the challenges created by international trade for japan
the japanese government is not always successful in making industries work together in the national interest. **despite twenty years of continual pressure**, the supposedly all-powerful **Ministry of International Trade and Industry** has simply not been able to get the major computer manufacturers to pool their efforts-- something that the governments of Germany, France and the UK have all accomplished
lack of natural resources
based on OECD data, Japan's labour productivity in 2018 was $46.8 per hour; this is lesss than half the $102.3 level in Ireland, and roughly 60% of the $74.7 level in the USA
108
what is trade like in sierra leone
sierra leone is a peripheral economy with limited access to global markets and value chains
in 2019 it had a trade deficit in every category where data was recorded
merchandise trade in total was 1500 times smaller than that of the USA
it is heavily dependent on aid from the USA, UK and increasingly China
109
where is sierra leone
is a small West African country with an Atlantic coastline
has many natural resources, especially metallic ores, and the potential for a wide range of agricultural produce
110
who are sierra leone's main trade partners?
main export trade partners are china, japan and beligum
imports come from china, india, the UK and other EU countries
111
economic factors that contribute to sierra leone's limited access to global markets
overdependence on primary product exports, such as iron and titanium ores, cocoa beans, etc. makes trade vulnerable to sudden shocks as global demand and prices fluctuate
limited access to finance and secure banking sector
inadequate infrastructure, including water and energy provision, unreliable road, rail, sea and air transport, limited networks
poor communications networks with very limited access to broadband internet
high costs of production and sub optimal productivity
low levels of technology
111
what are the political factors contributing to limited access to global markets in sierra leone
slow recovery from the consequences of civil war. **previous political instability has affected confidence of investors and international trade**
inefficient government bureaucracy and prevalence of corruption
inability to control crime including illegal trading
112
social factors contributing to sierra leones limited access to global markets
high level of unemployment-- 70% of under 25s unemployed
inadequately educated work force **with high percentage (91% women, 80% men) not reaching secondary education**
gender inequality presents serious barriers to the contribution of women
other human rights abuses such as the use of child labour
other socioeconomic inequalities in health, poverty and life expectancy
113
environmental factors contributing to sierra leones limited access to global markets?
debilitating effects on the population/work force of prevalent diseases such as malaria, typhoid and Ebola
limiting effects of environmental damage to water, soil and forest reserves as a result of large-scale mining operations and agri-business
114
what are the opportunities for sierra leone created by international trade
political stability and good trade relations have improved since the civil war. there have been three successful democratic elections, the government is modernising customs to ease trade and rule of law is strengthening in dealing with corruption and new gender laws
membership of ECOWAS has benefited by abolishing tariff and non tariff barriers between member states. these include other sub-saharan lidcs such as Togo and Benin. this has increased trade, boosted economic activity, and increased competitiveness in global markets
115
what are the challenges for sierra leone created by international trade
managing conflicts between indiscriminate development and environmental degradation. unsustainable mining practices and agribusiness have caused soil erosion, silting of rivers, deforestation and displacement of communities
broadening the economic base by attracting investment in manufacturing industries and in services. in 2017, the percentage contributions to GDP were: agriculture 60.6%, industry 6.5% and services 32.9%
116
