Components of Global Trade
What are the two components of trade?
Merchandise Trade and Commercial Services
Which three continents are in the triad of global production?
Europe, Asia and North America
Which country mainly created the global trading system after 1945?
The United States
Are gains from trade evenly distributed?
No!
What did GATT morph into?
The World Trade Organization (WTO)
How is merchandise trade divided?
Generally divided among manufactured goods, agricultural products and fuels and mining.
Which continent in the triad accounts for the most of all global trade?
Europe
Which form of currency does the global trading system mainly rely on?
The USD
When did free trade develop?
After 1945
A forum for the negotiation of trade agreements with some limited capacity to deal with trade disputes.
General Agreement on Traffics and Trade (GATT)
What do commercial services typically include?
Non-tangible products
For most of the last 200 years of global trade, the most prevalent pattern was for poorer nations to export what?
Agricultural goods and raw materials to richer nations.
Which period of economic crisis led to larger imbalances driven by U.S. policies?
The 1970s.
What does achieving free trade involve?
Involves a deep web of political relationships operating within nations and between them as well.
Officially began in 1958, it established a set of stages for the elimination of tariffs and other barriers to trade. Member nations committed themselves to a single market by 1992 and to the political arrangements necessary for this.
European Economic Community (EEC)
Give three examples of commercial services
Transportation, communication and telecommunications, insurance, financial and computer services.
63 percent
What is the key measurement of global imbalances?
Current account deficits and surpluses.
Who promoted free trade in 1965?
The US and its major Cold War allies.
A global trade organization created to oversee the agreements emerging out of the Uruguay Round of international trade negotiations.
What percentage of global trade does merchandise trade make up?
80.6%
Which six nations define European trade?
Belgium, France, Germany, Italy, Netherlands and the UK.
What did the U.S. deficit account Peake at?
$800 billion or 1.3% of global GDP.
What policies did U.S. officials tolerate in 1965 regarding trade?
Asymmetrical free trade rules, with Europe and Japan engaging in policies of protection.
The Uruguay Round is which round of of multilateral trade negotiations conducted within the framework of GATT?
The eighth round