Global+Exchanges



**Topic 1: International Trade ** In 1970, the value of world exports of goods and services amounted to 0.4 trillion dollars and increased in just 34 years (2004) to 10.8 trillion dollars. Those numbers show that countries like Asia realised that they have been successful thanks to the exports of manufactured goods, thanks to International Trade.

International Trade can be the equivalent to development and because of this exports have been increasing for the last years. This is due to the success of trade agreements and technological advantages.

International Trade affects world economy (including individual nations). It looks for lows costs of manufacture production. Technology has helped to decrease transportation costs, doing the production and transportation more efficient day by day.

**Topic 2: Pattern of Trade (who sells what to whom?) ** The p attern of trade indicated that developed countries controls 50% of world trade. They specialize in high-tech goods, meanwhile developing countries controls 15% of word trade and specialize in the production of basic staples and textiles; the rest (%) is between the North/South trade. Developing countries has some methods of protect ionism in order to avoid that foreign industries have any kind of advantages over domestic industry. This allows the development of domestic economy.

<span class="TextRun SCX563231" style="color: #000000; font-family: 'Times New Roman',serif; font-size: 12pt;">Some countries export more than others. The reason is that many countries have started to open up to international trade, but others have trade restrictions since the economic crisis experienced before. Those that have joined in capital and technology, have more opportunity to participate in global economic settings. Therefore, some developing nations will be at the top of world trade. Also it is important all the rest of world production, because it is necessary to satisfy others countries with different needs that those big parties (leaders) couldn’t cover.

<span style="background-color: transparent; color: windowtext; font-family: Calibri,sans-serif; font-size: 8pt; vertical-align: baseline;"><span class="TextRun SCX563231" style="color: #000000; font-family: 'Times New Roman',serif; font-size: 12pt;">In Latin America, South Asia, India and Pakistan the government imposed heavy restrictions on manufacturing imports and those restrictions almost closed these economies to the rest of the world. This is called “Import-substituting industrialization”.

<span style="background-color: transparent; color: windowtext; font-family: Calibri,sans-serif; font-size: 8pt; vertical-align: baseline;"><span class="TextRun SCX563231" style="color: #000000; font-family: 'Times New Roman',serif; font-size: 12pt;">On the other hand, in countries like Mexico and Brazil, the local firms became more competitive, thanks to the pro-trade attitude. Also East Asia adopted the export-oriented industrialization from the 1970’s to 2003 and the gross domestic product increased 25% (from 10% to 35% on exports).