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Quote " From an economic point of view, what is important is that the

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1 Quote " From an economic point of view, what is important is that the
country participates in the newest technologies and innovations, not whether it innovates itself." World Economic Forum Global Competitiveness Report 2000 Harvard's Center for International Development and the World Economic Forum concluded that a countries widespread use of IT is more important than the source of its technology. This conclusion argues against protectionist trade policies.

2 III. Trade and Tariffs Trade Exports Tariffs The third section examines trade, tariffs, non-tariff barriers and the influence these have on the cost and domestic use of IT products. Non-Tariffs Barriers

3 World Exports 1970 - 2001 $ trillions
But first, let's take a quick look at the growth of global exports since 1970. During the last 30 years, global exports have grown by a factor of 20. sources: IMF World Economic Outlook Database and WTO

4 World Exports vs Global GDP Purchasing Power Parity
$ trillion GDP PPP*: 10 times growth Exports: 20 times growth The IMF has developed a purchasing power parity GDP used to compare the relative purchasing power of countries with different currencies and cost structures. Global GDP Purchasing Power Parity has also grown dramatically since 1970 by a factor of ten. * PPP is Purchasing Power Parity sources: IMF World Economic Outlook Database and WTO

5 The result is the share of global exports that make up the global GDP.
Exports as % of GDP PPP GDP PPP Global exports as a percent of GDP PPP is calculated by dividing the GDP PPP by exports. The result is the share of global exports that make up the global GDP. In the 1970's, exports grow rapidly relative to GDP. The early 1980's recession resulted in a global decline of exports relative to GDP. Since 1990, global exports as a share of global GDP was stable in a range of 16% to 18%. Clearly, global exports play are a significant part of global economy. Exports * PPP is Purchasing Power Parity sources: IMF World Economic Outlook Database

6 Exports of Goods per Capita for Selected Countries 1999
Similar to GDP per capita, a nation's exports of goods per capita is another way of measuring an economy's global competitiveness. The range of exports per capita is significant. From Taiwan's $5,477 to India's $36 represents a very large gap.. Export data in this presentation is for goods only and does not include services. sources: WTO and Global Competitiveness Report 2000


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