MAJOR GLOBAL TRADE FLOWS

Commercial Geography | Group - 1

Gagan R Goel (14023) | Akshay Vij (123005) | Amber Miglani (123006)

Anant Jain (123007) | Ankit Narang (123008) | Arjunveer Singh (123013)
Microelectronics
● Includes semiconductors, integrated circuits, parts for integrated circuits, and
other electronic components
● Japan and the East Asian countries, especially the Four tigers of South Korea,
Taiwan, Hong kong, and Singapore together dominates the world production and
exports
● United States no longer leads the world in the manufacturing of semiconductors
● However, still a major player in the Global trade flow of microelectronics(single
largest flow of this product is from United States to other developing countries)
● Canada and the Western European nations of the EU and European free trade area
(EFTA ) accounts for much smaller portion of overseas trade in this category
● However, Intra-European trade in microelectronics account for $15 billion
Automobiles
Automobiles account for the largest single flow of trade from EU

Germany being the largest producer followed by France and Spain

Between 1960 -2007 Japanese automobile manufacturer did the maximum global
penetration USA being the major consumer followed by Europe

Two giants from USA Ford and General motors faced a tough competition at
home and are forced to diversify and develop the international markets

US automobile market demand depends on the fuel prices , making fuel efficient
japanese models a preferred choice
Steel
● Steel production requires large and highly efficient plants, which are possible only with
tremendous capital investments and large economies of scale
● America has lost as much as two-thirds of its steel employment in the past 30 years
and now is a net importer of steel
● Western Europe countries will lead the world in steel production and trade
● EU sends billions of dollars of steel to developing countries
● The single largest flow of steel is from Japan to the developing countries
● The migration of steel production to the third world reflected the growing importance of
labour cost, government subsidies, and taxes to the delivered cost of steel
 Textile and Clothing
▪ Textile and Clothing manufacturing is largely shiting to developing countries like China, India,
Central America

▪ Labour Cost in these countries countries is much lower as compared to developed counterparts

▪ Developing countries account for growing share in Global Textile Exports

Source: wto-reports-world-textile-and-apparel-trade-in-2018
 Grains and Feed
● Wheat, corn, rice, other cereals, feed grains, and soybeans are included in the category of
grains and feed
● The United State is the world leader in this category, although Canada is also a major
exporter.
● Among developing countries, India, Egypt and Argentina are some of the largest net
exporters.
● Now, grains, feeds, and food products have become a steadily declining share of world
trade.
● Some of this reduction is because Western seeds, grains, and fertilizers are now
commonplace in Third World nations and the green revolution has made it possible for
some developing countries to provide for themselves
● Another reason is the worsening terms for trade for primary goods; prices of manufactures
and energy have risen rapidly, which gives producers of feeds, grains, and agricultural
products less leverage in the world trade commerce.
 Non Oil Commodities

● In the discourse of International trade

the term commodity means raw
materials
● It Includes copper, aluminium, zinc,
nickel, tin, iron ores, etc
● U.S. is the largest exporter of this group
of goods primarily to Europe and Japan
● The largest single flow of raw materials
is from developing countries to Japan,
which lacks significant natural Figure: Non Oil Commodities
resources and arable land