Студопедия

Главная страница Случайная страница

КАТЕГОРИИ:

АвтомобилиАстрономияБиологияГеографияДом и садДругие языкиДругоеИнформатикаИсторияКультураЛитератураЛогикаМатематикаМедицинаМеталлургияМеханикаОбразованиеОхрана трудаПедагогикаПолитикаПравоПсихологияРелигияРиторикаСоциологияСпортСтроительствоТехнологияТуризмФизикаФилософияФинансыХимияЧерчениеЭкологияЭкономикаЭлектроника






Delivering the goods






International trade is growing at a startling pace. While the global economy has been expanding at a bit over 3% a year, the volume of trade has been rising at a compound annual rate of about twice that. Foreign products, from meat to machinery, play a more important role in almost every economy in the world, and foreign markets now tempt businesses that never much worried about sales beyond their nation’s borders.

What lies behind this explosion in international commerce? The general worldwide decline in trade barriers, such as customs duties and import quotas, is surely one explanation. The economic opening of countries that have traditionally been minor players is another. But one force behind the import-export boom has passed all but unnoticed: the rapidly falling cost of getting goods to market. Theoretically, in the world of trade, shipping costs do not matter. Goods, once they have been made, are assumed to move instantly and at no cost from place to place. The real world, however, is full of frictions. Cheap labour may make Chinese clothing competitive in America, but if delays in shipment tie up working capital and cause winter coats to arrive in spring, trade may lose its advantages.

At the turn of the 20th century, agriculture and manufacturing were the two most important sectors almost everywhere, accounting for about 70% of total output in Germany, Italy and France, and 40-50% in America, Britain and Japan. International commerce was therefore dominated by raw materials, such as wheat, wood and iron ore, or processed commodities, such as meat and steal. But these sorts of product are heavy and bulky and the cost of transporting them relatively high.

Over time, however, world output has shifted into goods whose worth is unrelated to their size and weight. Today it is finished manufactured products, that dominate the flow of trade, and, thanks to technological advances such as lightweight components, manufactured goods themselves have tended to become lighter and less bulky. As a result, less transportation is required for every dollar’s worth of imports or exports.

To see how this influences trade, consider the business of making disk drives for computers. Most of the world’s disk-drive manufacturing is concentrated in South-East Asia. This is possible only because disk drives, while valuable, are small and light and so cost little to ship. Computer manufactures in Japan or Texas will not face hugely bigger freight bills if they import drives from Singapore rather than purchasing them on the domestic market. Distance therefore poses no obstacle to the globalization of the disk-drive industry.

 

Statements:

1. International trade is increasing at a greater rate than the world economy.

2. Cheap labour guarantees effective trade conditions.

3. Japan imports more meat and steal than France.

4. It is cheaper for the Japanese computer manufactures to buy the disk drives on the domestic market rather than import them from Singapore. 5. Small computer components are manufactured in Germany

 

Key: 1 – True; 2- False; 3 – Not Given; 4 – True; 5 – Not Given

 


Поделиться с друзьями:

mylektsii.su - Мои Лекции - 2015-2024 год. (0.006 сек.)Все материалы представленные на сайте исключительно с целью ознакомления читателями и не преследуют коммерческих целей или нарушение авторских прав Пожаловаться на материал