1. Chapter 13: International Trade Patterns Learning objectives in this chapter: –Describing the evolving patterns of international commerce –Documenting emerging markets for global exports –Examining global trade flows in six major commodity groups

2. Backdrop Capitalism is in constant political and economic flux (****key interpenetration of these two themes*****) This chapter complements Chapter 12, with a largely empirical description of international trade International trade has gradually expanded in the post WW-II time period, and its growth has generally outpaced GDP expansion (Figure 13.3) Global economic growth has been uneven, and has reflected global recessions and expansions – see Figure 13.1, Figure 13.2, Tables 13.1, 13.2

3. World Economic Growth (% Change in GDP)

4. Table 13.1: Shifting Proportions of World Output

5. World Bank GDP % Change

6. Figure clearly shows rising rates of exports compared to overall production levels, especially in manufacturing ? What about services? All the evidence we have points to the same trend

7. Emerging Markets Table 13.2 & Figure 13.3 make the point that globally the developing countries in Asia are the key points of expansion for export markets Post 2000? Impact of shift from natural resources to manufactured goods in this bar chart Text discussion of differences in trade policy

8. World Patterns of Trade: The United States Note Change in Scale!

9. The Shifting Geography of U.S. Merchandise Trade Scale must be off – high by 1,000 Figure 13.7 – U.S. – Canada Trade, Figure 13.5 updates this to 2000 Table 13.4 indicates how concentrated U.S. trade is with a few nations

10. U.S. Services Trade Unlike merchandise, the U.S. has a big trade surplus in services Exports include quasi-services such as software Intellectual property & multimedia Telecommunications Travel – business & tourist Financial ??? Offshoring of services???

11. U.S. Trade in Key Commodities The rise of Airbus, Bombardier (sp?) Rise of imports from Japan, Korea, Mexico, And Canada

12. U.S. Trade in Key Commodities The shift from a net exporter to a net importer

13. Canadian Exports: The U.S. Dependence Mismatch in size between U.S. and Canadian economies

14. Canadian Exports: From A Staples- based economy to diversified products Most trade today is without tariffs: but lumber exports to U.S. are an exception

15. The EU The largest trading block of countries in the world – see Figure 13.10 Exports are relatively large, given the population of Europe There are several explanations for this: –The relative wealth of European countries –The small sizes of the countries and their relatively strong reliance on neighbors for markets (like states in the U.S. in many ways) –Highly developed transportation system

16. Germany: Europe’s Largest Exporter Solid trade surplus

17. Great Britain: More strongly tied to Europe than Germany, but this figures excludes service exports

18. France: Strong European Ties A more diversified mix of exports and imports than Germany or the U.K.

19. Italy: Much more Strongly Integrated with Europe than Germany, UK, and France Is a gravity model type relationship evidence in %’s of exports/imports for Germany, Italy and France?

20. Western Europe’s Trade Balance

21. Latin America A divergent set of economies – some very stable, others unstable – some very poor and others with middle incomes Diverse resource endowments Diverse historical backgrounds Diverse political structures The shift in development strategies from import-substitution to export-led industrialization

22. Mexico’s Exports & Imports Huge U.S. Dependence Relatively large staples exports Ignores services exports / imports