1. Principles of International Economics Prof. Dr. Hans H. Bass, Bremen University of Applied Sciences, International Degree Programme in Economics Summer Term 2010

2. Principles of International Economics Topic 2: International Trade – Basic Facts

3. March 15, 20103 1.International Trade in Commodities 2.International Trade in Services Agenda International Economics

4. March 15, 20104 Data Source: WTO Merchandise Trade 1970-2008 International Trade

5. March 15, 20105  growth rate merchandise trade > growth rate world production (annual average percentage change). Characteristics International Economics

6. March 15, 20106 Source: WTO, ITS 2009

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9. 9  different periods, but always: growth rate merchandise trade > growth rate GDP  different spatial growth patterns: “Triade”, EA-NICs, RoW Characteristics International trade in commodities

10. March 15, 201010 UN Comtrade http://comtrade.un.org/db/dqQuickQuery.aspx Data sources International trade in commodities

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15. March 15, 201015 CAGR (t0, t1) = ((Yt0/Yt1) (1/(t1-t0)) – 1)*100, where t0 indicates the starting period, and t1 indicates the end period, while Y indicates the Variable CAGR International trade in commodities

16. March 15, 201016 1.International Trade in Commodities 2.International Trade in Services Agenda International Economics

17. March 15, 201017 Trends International trade in services

18. March 15, 201018 Background: Fourastié Hypothesis International trade in services

19. March 15, 201019  higher income elasticity of demand for personal services vis-à-vis commodities  technical changes in business-related products: “compacks” Reasons for an increase in trade in services International trade in services