Trade (General) Flashcards
(12 cards)
What is trade?
The buying and selling of materials, goods and services.
What is free trade?
Trade without any restrictions, eg tariffs, quotas, subsidies etc.
What % of world trade is just between HICs?
50%
What is the difference between visible and invisible exports?
Visible = physical goods/materials, eg agricultural, materials.
Invisible = Services, eg finance, tourism.
What is ‘Trade Deficit’ and ‘Trade Surplus’?
Deficit = import more than you export, -ve trade balance.
Surplus = export more than you import, +ve trade balance.
What are some advantages of a trade surplus/disadvantages of a trade deficit?
+ Shows strong economy
+ Shows more employment opportunities
+ Makes it easier to borrow
+ Don’t need to allow FDI, who may not have countries best interest at heart
Why is a trade deficit not always bad? And why are they not always true?
Country must make up for short-fall another way, eg through borrowing money or FDI. FDI can be seen as a vote of confidence, and act as a source of economic growth.
Not always true due to invisible trade.
Why does Asia have a high share of the world’s exported manufactured goods?
- Cheap labour, TNCs attracted to, eg The Asian Tigers, Taiwan.
- China has a lot of land to manufacture on, and has the IT knowledge and skill.
Name three of the world’s top exporters, give the number of one.
1) China, $3.6 trillion in 2022
2) US
3) Germany
Name three of the world’s top importers.
1) US
2) China
3) Japan
What is the UK’s trade relationship with the USA?
- USA is UK’s largest single trading partner, accounted for about 1/5 of all UK export.
- USA account for about 13% of all UK imports.
- Have a trade surplus with USA.
What is the UK’s trade relationship with China?
- China is UK’s largest import partner, mainly machinery.
- Have a trade deficit with China.
