Tina Lin Lei
CIA4U
United 5 Seminar Presentation
Global trade
Specialization
•Absolute and comparative advantages•Pros/cons •Organizations and agreements•International monetary fund and its impacts•Multilateral and bilateral negotiations
OUTLINE
“Globalization, in an economic contest, is
the movement of goods, services, technology,
investment, ideas and people throughout the
world.”
GLOBALIZAITON
Absolute and comparative advantages1. Definition
TOPIC ONE
Apples Peaches
Canada 1000 600
United States 800 1400
Total 1800 2000
Apples Peaches
Canada 1000 500
United States 1200 800
Total 2200 1300
Apples Peaches
Canada 1000 500
Unites States 1200 800
Total 2200 1300
OPPORTUNITY COST
For producing peaches:
Canada: producing 1 peach needs to give up 2 apples (1000/500=2)
United States: producing 1 peach needs to give up 1.5 apples
(1200/800=1.5)
Therefore, the United States should use all its resource to produce
peaches since they have lower opportunity cost to in peach
production.
Activity: Calculate the opportunity cost of producing one peach for each country.
What are some positive and negative side of SpecializationGlobal trade?
DISCUSSION QUESTION
Positive effect:1. Higher output2. More variety 3. Competition and
lower prices
Negative effect:1. Independence 2. Monopoly3. Unemployment
SPECIALIZATION
Positive effect:1. Outsourcing2. Lower price 3. Increased production 4. Innovation 5. Better jobs 6. Increased capital flow
Negative effect:7. Lost Canadian jobs8. Fear of job loss9. Loss of Canadian
productivity 10. Exploitation of cheap
labour11. Increase in the income
gap12. Influence of MNCs on
government
GLOBAL TRADE
General Agreement on Trade and Tariff Canada, US, and 21 other nations International agreement to reduce trade
barriers.Total of 8 roundAverage tariff reduced from 40% to 5%.Volume of national merchandise trade
multiplied 20-fold.
GATT
World Trade Organization A Multilateral trade
negotiationReplaced GATT in 199512 more countries joinedAverage tariff continued to
fall
WTO
A multilateral trade negotiation involves simultaneous agreements among a number of nations.A bilateral negotiations involves only two nations.
The roles of WTO
Liberalize world trade
Sole power to adjust based on the dispute.
Removing trade barriers.
Issue of intellectual property rights
Rules regarding foreign investment by
multinationals
WTO CONTINUED
International Monetary FundThe International Monetary Fund (IMF) is an
organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.
IMF
Haiti, as it is one of the poorest countries, is now facing huge debt of $268 million after the earthquake, which is mainly owned by IMF. Although it was wiped out latter, Haiti government borrowed another $50 million which is going to be charged by 0.5% in the future. Even though they get the aid from IMF, they will need to pay them off eventually. It could be another financial crises for Haiti when IMF calls the money back.
REAL WORLD EXAMPLE
Haidi
REAL WORLD EXAMPLES
# Does IMF help or hurt the poor countries?
DISCUSSION QUESTION
1. Go to the website: Socrative Student (GOOGLE IT!)
2.Login the room number: 182420
REVIRW THE KNOWLEDGE
Dearden, Nick. "IMF Debt Cancellation for Haiti at Last (and a
New Loan)." CADTM -. CADTM, 30 July 2010. Web. 23 May 2013.
"Haiti’s Martelly Marks Two Years in Office." Caribbean Journal
Haitis Martelly Marks Two Years in Office Comments. Caribbean
Journal Staff, 15 May 2013. Web. 23 May 2013.
WORK CITED
McManus, Wade. "IMF Imperialism in Haiti." Collegian Archives. N.p.,
n.d. Web. 23 May 2013.
Riley, Geoff. "Specialisation and Trade." Specialisation and Trade.
Tutor22, 23 Sept. 2012. Web. 23 May 2013.
"Top Ten Reasons to Oppose the IMF." Top Ten Reasons to Oppose the
IMF | Global Exchange. N.p., n.d. Web. 23 May 2013.
WORK CITED
Tina
May 24th,2013
THANK YOU