Global and International Trade

1. What is Trade?
Trade, as a noun can refer to the action of buying-selling or exchanging goods
and services between people, companies, countries, and other entities. The term is
often synonymous with ‘commerce’. It may also refer to a particular industry as in
the building, tourist or fur trades.
Job or Skill
The term can mean a job or skill, especially one that involves working
with one’s hands. Examples includes carpentry, plumbing, and mechanics.
Traditionally, tradesman were people with these skills. Rich Homes,
hotels, and business premises used to have a ‘tradesman’s entrance’.
People who work in trades are those employed in a particular industry or
business, as in “That warehouse only sells its good to the building trade, never
directly to the public.”
2. What is globalization?
Globalization, the worldwide movement toward economic, financial, trade, and
communications integration. Globalization implies the opening of local and
nationalistic perspective to broader outlook of an interconnected and
interdependent world with free transfer of capital, goods, and services across
national frontiers. However, it does not include unhindered movement of labor
and, as suggested by some economics, may hurt smaller or fragile economies if
applied indiscriminately.
3. Importance of Trade:
 Make use of abundant Raw Materials, some countries natural (Qatar),
metal, fish (Iceland), Congo (Diamonds) butter (New Zealand). Without trade,
these countries would not benefit from natural endowments of raw materials.
 Comparative Advantage, the theory of comparative advantage states that
countries should specialize in those goods where they have a relatively lower
opportunity cost. Even if one country can produce two goods at a lower
absolute cost- doesn’t mean they should produce everything.
 Greater choice for consumer, New Trade Theory places less emphasis on
comparative advantage and relative input costs. New trade theory states that in
the real world, a driving factor behind the trade is giving consumers greater
choice of differentiated products.
 Specialization and economies of scale- greater efficiency, another aspect of
new trade theory is that it doesn’t really matter what countries specialize in,
the important thing is to pursue specialization and this enables companies to
benefit from economies of scale which outweigh most other factors.
  Service sector trade, trade tends to conjure images of physical goods import
bananas, export cars. But, increasingly the service sector economy means
more trade is of invisibles- services, such as insurance, IT services and
banking.
 Global growth and economic development, international trade has been an
important factor in promoting economic growth. This growth has led to a
reduction in absolute poverty levels- especially in south east Asia which has
seen high rates of growth since the 1980s.
4. Give the Top Ten Trading country.
 China
European States
 United States
 Germany
 Japan
 South Korea
 France
 Netherlands
 Italy
Hong Kong
 United Kingdom
 Canada
5. List the top ten Trading items products in the Philippines.
Top ten Filipino Exports with Canada
The following major export products represent almost three-quarters
(72%) of total shipments from the Philippines to Canada. Shown within
parenthesis is the corresponding percentage value for each products in 2018:
 Insulated wire/cable: US $235.5 million (40.5%)
 Copper ores, concentrates: $66 million (11.3)
 Integrated circuits/micro assemblies: $ 34.8 million (6%)
 Lock, lock-keys: $19.3 million (3.3%)
 Coconuts: $15.7 million (2.7%)
 Printing machinery: $12.1 million (2.1%)
 Miscellaneous preserved fruits: $11 million (1.9%)
 Bread, biscuits, cakes, pastries: $8.9 million (1.5%)
 Fruit and vegetables juices: $7.9 million (1.4%)
 Cases, handbags, wallets: $7.7 million (1.3%)
 Global and International
Trade

Submitted by: Gemmalyn A. Sy

Course: BSBA-HRDM
Submitted to: Dr. Isaias B. Borres