International
Linkages
South Africa
and World
Trade
26
Government
and Trade
South Africa
and the Global
Economy
GATT
WTO
European
Union
Last Word
Key Terms
End Show
26-1
Copyright 2011 The McGraw-Hill Companies
Chapter Objectives
International
Linkages
South Africa
and World
Trade
Government
and Trade
GATT
WTO
European
Union
Last Word
• Key Facts About S.A.
International Trade
• How and Why Government
Sometimes Interferes with Free
International Trade
• Role Played by Free-Trade
Zones and the WTO in
Promoting International Trade
• Trade Blocs
• Global Competition
Key Terms
End Show
26-2
Copyright 2011 The McGraw-Hill Companies
International Linkages
International
Linkages
Trade Flows
Goods & Services
South Africa
and World
Trade
Government
and Trade
South
Africa
Economy
GATT
WTO
European
Union
Resource Flows
Capital & Labor
Other
Information &
National
Technology Flows
Economies
Information & Technology
Last Word
Financial Flows
Money
Key Terms
End Show
26-3
Copyright 2011 The McGraw-Hill Companies
South Africa and World
Trade
International
Linkages
South Africa
and World
Trade
Government
and Trade
GATT
WTO
European
Union
Last Word
• Volume
• Dependence
• Trade Patterns
• Financial Linkages
Key Terms
End Show
26-4
Copyright 2011 The McGraw-Hill Companies
South Africa and World Trade
Exports/Imports as % of GDP
100
90
International
Linkages
80
South Africa
and World
Trade
GATT
60
%
Government
and Trade
70
50
40
WTO
30
European
Union
20
Last Word
10
0
Angola Australia Botswana Brazil
Key Terms
China
Ghana
Hungary
Kenya
Mexico
End Show
26-5
Copyright 2011 The McGraw-Hill Companies
Exports Imports
Nigeria
Saudi
Arabia
Senegal
South Venezuela Zambia
Africa
South Africa and World
Trade
SA volume of Exports and Imports Indices
International
Linkages
South Africa
and World
Trade
140
Government
and Trade
100
WTO
European
Union
Index
GATT
120
80
60
40
20
Last Word
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Year
Key Terms
Exports
End Show
26-6
Copyright 2011 The McGraw-Hill Companies
Imports
World Comparative Exports
Participants in International Trade
International
Linkages
South Africa
and World
Trade
Government
and Trade
GATT
WTO
European
Union
Last Word
Key Terms
End Show
GLOBAL PERSPECTIVE
Comparative Exports - 2004
0
100
Germany
United States
China
Japan
France
Netherlands
Italy
United Kingdom
Canada
Belgium
South Korea
Mexico
Russia
Taiwan
Singapore
200
300
400
500
600
700
800
900
$912
$819
$593
$566
$449
$358
$349
$347
Billions of Dollars
$317
$307
$254
$189
$184
$183
$180
Source: World Trade Organization
26-7
Copyright 2011 The McGraw-Hill Companies
International
Linkages
South Africa
and World
Trade
Government
and Trade
GATT
WTO
European
Union
Last Word
Key Terms
Government and Trade
Why Government Trade
Interventions?
• Misunderstanding the
Gains from Trade
• Political
Considerations
• Costs to Society
End Show
26-8
Copyright 2011 The McGraw-Hill Companies
Government and Trade
International
Linkages
South Africa
and World
Trade
Government
and Trade
GATT
WTO
European
Union
Last Word
Key Terms
Multilateral Trade Agreements
And Free-Trade Zones
• General Agreement on
Tariffs and Trade (GATT)
–Equal Trade Treatment
–Reduction in Tariffs
–Elimination of Import
Quotas
• Uruguay Round
End Show
26-9
Copyright 2011 The McGraw-Hill Companies
Government and Trade
International
Linkages
South Africa
and World
Trade
Government
and Trade
GATT
WTO
European
Union
Last Word
Multilateral Trade Agreements
And Free-Trade Zones
• World Trade
Organization (WTO)
• Doha Round (Doha,
Qatar)
• The European Union
(EU)
–EU Trade Bloc
–The Euro
Key Terms
End Show
26-
Copyright 2011 The McGraw-Hill Companies
Government and Trade
GLOBAL PERSPECTIVE
International
Linkages
South Africa
and World
Trade
Government
and Trade
GATT
WTO
European
Union
Last Word
Key Terms
End Show
Global Competition
Top 12 Globalized Nations - 2005
1-Singapore
2-Ireland
3-Switzerland
4-United States
5-Netherlands
6-Canada
7-Denmark
8-Sweden
9-Austria
10-Finland
11-New Zealand
12-United Kingdom
Source: A. T. Kearney, Foreign Policy
26-
Copyright 2011 The McGraw-Hill Companies
Petition of the Candlemakers
International
Linkages
South Africa
and World
Trade
Government
and Trade
GATT
WTO
European
Union
Last Word
Key Terms
End Show
26-
• Problems with Protectionism
• Satire on Candlemakers 1845
• Sought to Remove Competition
from Trade on Light Sources
• The Sun is also a Light Source
• Close Out All Natural Light to
Increase Demand for Candles and
Raw Materials to Make Them
• Taken to Extreme, There is No
Way to Remove Competition
Copyright 2011 The McGraw-Hill Companies
Key Terms
International
Linkages
South Africa
and World
Trade
Government
and Trade
GATT
WTO
European
Union
Last Word
• International linkages
• South Africa and World trade
• General Agreement on Tariffs and
Trade (GATT)
• World Trade Organization (WTO)
• Doha Round
• European Union (EU)
• trade bloc
• euro
Key Terms
End Show
26-
Copyright 2011 The McGraw-Hill Companies
Last Chapter Preview…
International
Linkages
South Africa
and World
Trade
Government
and Trade
GATT
WTO
European
Union
The Economics
Of Developing
Countries
Last Word
Key Terms
End Show
26-
Copyright 2011 The McGraw-Hill Companies