Global Economic Environment

International Trade
Group 2 Neil Hamlin, Yingkai Wang,
Jiatong Cao, Yunpeng Li, Ziheng Sun

Identify the major flows of imports and exports bet

ween countries/trading blocs

D Figures Oct 2012 Data Extract

Countr
ies
Billion US $

Percentage of global
total

Import

expo
rt

import

export

EU

458

463

25.5

26.5

US

189

127

Canada 38

37

Mexico

30

30

NAFTA

251

194

14

11

China

148

161

8.2

9.2

Japan

72

68

3.9

Russia

26

49

1.4

2.8

Australi 20
a

21

1.1

1.2

Consider trade links between triad and non-triad c

ountries
The Triad accounts for 50% of world exports and imports
The triad is also dominant in investment, but even here its position is under challenge from
emerging countries such as China and India.
The Triad is connected with the great developing economies like China and India and has
a lot of complex cooperation agreements with these countries.
Increased interdependence is indicated by increases in exchanges across borders of
goods and services, financial capital, and people.
The dominance of the triad is being challenged by the emergence of China, India, and
Russia as world economic powers e.g. China has become the second largest trader in
manufactured goods after Germany and ahead of the USA (World Trade Organization
2007).
The majority of world trade takes place either within each Triad member or between the
trading blocks however, most of this trade is internal i.e. NAFTA is not heavily dependent
on trade with either the EU or with Japan.
Other parts of the world tend to play only a minor role

Highlight any major trading partnerships

World Trade Organisation - 157 members on 24 August 2012 - The WTO
provides a forum for negotiating agreements aimed at reducing obstacles to
international trade and ensuring a level playing field for all, thus contributing
to economic growth and development.
NAFTA US, Canada, Mexico
EU: European Union most mature economic integration with single
currency, customs union, single market; economic union and political union
e.g. foreign and security.
SE Asia Trading Partnership based around Japan but increasingly China,
also includes South Korea, Singapore, Taiwan and Hong Kong

OECD - Twenty countries originally signed the Convention

on the Organisation for Economic Co-operation and
Development on 14 December 1960. Since then fourteen
countries have become members of the Organisation
SAFTA - 6 January 2004 created a free trade area in
Bangladesh, Bhutan, India, Maldives, Nepal Pakistan and Sri
Lanka
Western Europe dominated by EU member states;
4

References
1. World Trade Organization (2007) World Trade Report
2. Hamilton, L. and Webster, P. (2012) The International Business Environment.
Oxford: Oxford University Press
3. China daily, 2012
4. OECD Figures Oct 2012 Data Extract