Global Trade & Development

Built it here, sell it

Everywhere

M.Thoucid

Agenda

WTOInternational Trade

Pattern of Trade BenefitsHow Does they Global Trade help to

develop the country( Mexico).

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WTO• the World Trade

Organization (WTO) is the only international organization dealing with the global rules of trade between nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.

Members

Observers

Non-Members

Formation January 1, 1995

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INTERNATIONAL TRADE

• Trade means Exchange of goods and services.• Trade plays a key role in an increasingly interconnected and

interdependent world, and it makes up a large part of the global economy.

• In 1970 value of world goods & services export was 0.4 trillion dollar a 10% of world output.

• In 2004 value of world export is 10.8 trillion dollar is a Quarter of world Output.

• The pattern of trade.

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Pattern of Trade

50% of world trade Developed Countries

1/3 is developed and developing countries.35% north south Trade

15% is developing countries in World Trade

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Developed Countries• Europe, North America and East Asia.• They are exporting Computer, automobiles and Airplanes.

Developing Countries.• Africa, south Asia and Latin America• They Exporting Basic Staples (rich, wheat and sugar)/

Textiles.

Some countries like Taiwan more free trade from others.

They export is about 50% of GDP. Uganda is 12% of they GDP.

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For Example

• Over the past 40 years, trade has grown from 9.6% to 26% of the U.S. national economy. This shift has meant that more U.S. jobs are linked to trade and that Countries can buy more low-cost goods from abroad.

• As poor countries become richer and more integrated in the global economy, It has the potential to be a significant force for reducing global poverty by economic growth, creating jobs, reducing prices, increasing the variety of goods for consumers, and helping countries acquire new technologies

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Benefits For Countries

Two Reason for Specialization and trade considered benefit

for Countries. Concept of Comparative Advantage. Economic of scale.

Comparative Advantage.

For Example:- Pakistan and Sweden.• Pakistan produce rice and mango.• Sweden produced paper and Steel products.

They both countries Export and import they goods. It is Inter

Industry trade Because relative costly to produce

(the opportunity cost like labor, resource etc)

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Economic of Scale/product differentiation

Product differentiation:-

Same Product with Some Difference.

For Example:- car

Japan and US producing cars with some different models,

technology. Make a product more effective for consumers.

the global economy has been essential in enabling many

developing countries to develop competitive advantages in the

manufacture of certain products.

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Benefits

• Policies that make an economy open to trade and investment with the rest of the world are needed for sustained economic growth.

• the average import tariff has fallen from 30 percent to 10 percent over the past 20 years.

• Although there are benefits from improved access to other countries' markets, countries benefit most from liberalizing their own markets.

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How Does they Global Trade help to develop the country( Mexico)

The global financial crisis, which hit the Mexican economy

relatively hard.(2008-09)

• The Mexican economy has successfully overcome the global financial crisis of 2008-2009 help of fiscal and monetary policy.

• Mexico has launched a unilateral liberalization programme, to be implemented between 2009 and 2013, lowering tariffs on a wide range of manufactured goods.

• Mexico simplified its tariff structure by reducing the number of tariff levels from 88 to 28 and also adopted measures to simplify customs procedures and reduce import costs.

• Mexico promotes its exports through different types of programmes, in particular the Programme for Industry, Manufacturing, Maquila(electric saver) and Export Services (IMMEX). During the period 2007-2011, 66.2% of Mexico's exports and 47.2% of its imports were made by companies under the IMMEX programme.

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Continue…• In order to promote and increase FDI, Mexico has continued to sign agreements

for the Promotion and Reciprocal Protection of Investments. As of June 2012, Mexico had 28 investment agreements in force.

• Mexico has reduced the use of anti-dumping measures. By June 2012, Mexico had 38 anti-dumping measures in force.

• Mexico strongly promotes its manufacturing export sector through financial support programmes, tax incentives and training programmes. The main programmes offering tax benefits.(import tax refund).

• Mexico continues to be one of the main petroleum producers in the world; however the production of crude petroleum declined by 17% between 2007 and 2011, despite an increase in investment in the sector. Also, Mexico is currently a net importer of refined petroleum products.

M.Thoucid

1947 1995

THANK YOU BE GLOBAL AND ACT LOCAL

M.ThoucidAhamed

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