1 / 6

The nature and control of trade.

The nature and control of trade. L/O: To understand the ways in which trade occurs and is controlled. Starter – 5 mins. What do these acronyms stand for? WTO SAP NATO OECD RIC NIC BRIC EPZ IMF. Global trade. Free trade dominates trading relations.

neka
Download Presentation

The nature and control of trade.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The nature and control of trade. L/O: To understand the ways in which trade occurs and is controlled.

  2. Starter – 5 mins • What do these acronyms stand for? • WTO • SAP • NATO • OECD • RIC • NIC • BRIC • EPZ • IMF

  3. Global trade • Free trade dominates trading relations. • WTO has put in place a number of agreements since 1950s to remove: • Taxes and tariffs. • Quotas on imports. • Subsidies for domestic producers. • How do you think each of these has helped encourage foreign TNC/MNCs enter new markets? Be ready to feed your ideas back. • The result? Huge growth in trade and wealth. • Asia, China and India. • Africa is different. • Share of world trade has decline – 1970s. • There are a number of explanations for these trends: • Trade is dominated by TNCs – chosen to invest in India and China, not Africa. • Asia – free trade zones and EPZs used to attract investment. • Tax breaks, non-union areas and limited regulation. • Africa lacks developed infrastructure, high skill levels and political stability. • Not attractive to investors.

  4. Free trade? • Is trade free for all? 5 mins to come up with an answer. • Trade freedom has increased, but… • Trade is easier in trade blocs, EU, NAFTA, ASEAN which are tariff free. • Blocs also trade easily if agreements have been reached. • If outside a bloc, there can be massive trade barriers to over come. • Many African countries trapped in colonial trade patterns. • Export coffee, timber, copper to developed world. • Prices of these commodities are set on global stock exchanges and are highly volatile. (See Graph) • What does this graph tell show about the price of African commodities since Feb 07?

  5. Control • Superpowers also control innovation and technology. • Licence fees must be paid to patent holders – drugs, engines, microchips etc. • USA 41%, EU 33% and Japan 13%. • Allows them to control the availability of technology.

  6. Global Culture – Americanisation. • McDonald’s – global superpower? • 31,000 restaurants. • 50 million people a day • USA most powerful force in cultural globalisation – often referred to as Americanisation. • Read the case study on McDonald’s: Global Superpower? • How have McDonalds designed their business to increase the amount of money it produces? • How has McDonalds had to adapt in order to become a global brand? • http://www.youtube.com/watch?v=UlDOI6RsaS4 • Watch the documentary on global brands and make notes on how they achieve global dominance. • But is this traffic all one way? • UK curry is most popular take away not the burger. • 6 times as many curry houses as McDonald’s in UK • Popularity of Sushi is on the rise. • Some American sports prove hard to export – baseball and American football.

More Related