International trade

DEPARTMENT OF ECONOMICS ENGLISH FOR ECONOMICS IV Instructor : Dr. Tseliga Theodora Major : Tsavou Evaggelia S.R.N : 2536 Sinavelis Taxiarhis S.R.N : 2511 Siskas Konstantinos S.R.N : 2513

WHAT IS THE INTERNATIONAL TRADE With the term international trade we mean the exchange of capital,good and services between countries.In most countries, international trade represents a significant share of GDP.

Crisis: in Greece & worldwide The collapse of two Bear Stearns Hedge funds in 2007 reintroduces the world to an era of bank failures, a credit crunch, private defaults and massive layoffs. The Greek crisis caused by a combination of structural weaknesses of the Greek economy along with a decade long pre-existence of overly high structural deficits and debt-to-GDP levels on public accounts.

EFFECTS OF GREEK CRISIS ON GREEK ECONOMY the increasing tendency of inequality within countries. the inequality in conditions of social protection, health,etc. ecological urgent issues degradation

INTERNATIONAL TRADE The severe contraction of world trade volume during the recent global crisis ,was a major blow to the global economy . In the aftermath of the crisis,many governments in developed and developing countries contemplated or were pushed into using trade policy instruments, especially in the form of non-tariff measures (NTMs), to protect their domestic industries and producers.

Importance of international trade for Greek economy An export is the sale of a home-made good or service abroad. Despite the economic crisis in Greece, exports showed a significant increase.This increase is largely due to two factors : • Increase in the competitiveness of Greek products as a result of the reduction of prices and cost of production factors in Greece • Enhancement outward-orientation of Greek companies , through the exploration for new markets, given the recession in the domestic market An import is a purchase of a good or service made abroad. Imports remaining at almost the same levels as the previous year due to the restrictive economic policy implemented in 2012.

Main Export & Import partners Turkey Russia Italy Germany Bulgaria Saudi Arabia Cyprus Netherlands USA China U.K France

Main export & Import products Food and beverages Machinery Industrial products Fuel Petroleum products Food products Chemical products Vehicles for transportation

trade Positive effects : Expansion of consumers' potential Comparative advantage Mutual benefits Increase of effectiveness Economy’s growth Negative effects : Raise of unemployment Inequality Poverty

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