1. Chapter 13 International Trade Patterns
Describing the evolving pattern of international commerce
Documenting the emerging markets for global exports
Examination of global trade flows in six major commodity groups

2. World Patterns of Trade (1)
A clear trend
towards
rising
exports/imports
as a share of
output (GDP)

3. World Patterns of Trade (2)
Europe – many
small countries
with strong
trade to other
small countries,
somewhat like
trade among
U.S. states
US – a huge internal market

4. World Export Trends

5. World Exports by Category
One year change
Is very short,
But the total
Change (8%)
Seems low
Given the
Data for
Individual
industries

6. The extreme position
of the United States,
a mixed picture
for Europe,
the need to view
these data over
time, which would
not alter the U.S.
position for the
last several decades.
China’s huge trade
surplus: what to do
with the money?

7. Major U.S. Trading Partners
Geographic proximity; country economy size as explanations for level of trade.
The notable absence of India from this table.

8. U.S. Commodity Imports and Exports

9. U.S. Trade in Services
Unlike trade in goods, where the U.S. has a persistent trade deficit, the U.S. has a persistent trade surplus in services
This is based on services involving intellectual property, finance, producer services, information services
Implicit trade in services: government debt, in which foreigners hold huge reserves of US $

10. Key Trade Relations for Other Countries and Country Groups (1)
Canada – Strong ties to the U.S., a “gravity model” outcome, exports dominated by “staples”, rapid growth in trade in services
EU – Table 13.4, many small nations strongly tied to other EU countries, analogous to trade among state in the U.S. But a layer of countries with economic specialties traded globally – Germany: autos and machinery; France: food and wine; Italy: travel & mfg; UK – finance, …..
Latin America – strong exports of raw materials, linkages to Europe, strategies to promote “import substitution.”
Mexico – the largest US trade partner – dominated by petroleum, manufacturing, but a huge tourist trade

11. Key Trade Relations for Other Countries and Country Groups (2)
East Asia as the emergent source of exports in the last several decades – Japan after WW-II
The 4 Tigers: Taiwan, South Korea, Singapore, Hong Kong – a view from the 1970’s to ca. 1990
Displaced by China, Vietnam, Indonesia, India, and other SE Asian countries in recent years as a source of manufactured goods exports
Today a realization by the less developed countries in Asia that they must develop a robust producer services sector to be globally competitive; this is a huge challenge for the centrally planned economies.

12. Key Trade Relations for Other Groups of Countries (3)
Australia – Small in population, rich in resources, the Colonial connection
India – In some ways quite unique among large global economies (see next slide, from the previous edition of this text)
South Africa – shifting from raw materials and manufacturing to services
Russia – the rise of oligarchs, the stagnation of the economy in a global context, uncertainty of its future
The Middle East – clearly dominated by OPEC, but new spinouts from oil wealth in services – hotels, airlines, new cities

13. India – Exports & Imports
Very
Different
Mix of
Imports
And
Exports
Compared
To other
Countries
In the text
Does not capture the boom in services work being done in India – call
centers, software, and a host of advanced service activities. Very strong
higher education system – producing cadres of engineers & scientists

14. The next slides are from the previous edition of the textbook
They are a reasonable proxy for current data

15. Trade Flows in Microelectronics
Numbers in
the text
do not
correspond
to the
values in
this figure
Dominated by Mexico
And East Asia

16. Trade Flows in Automobiles
Again, numbers
in figure differ
from those
in the text
Dropping
as domestic
production
by Japanese
firms rises
Mostly
From
Mexico

17. Global Rise of Japanese Auto Manufacturers
Figure 13.14documents the global production presence of GM and Ford

18. Global Trade in Steel Strong exports From Japan And EU: A capital-
Intensive sector
?Lack of
Intra-country
data &
data differ
from text

19. Global Trade in Textiles and Clothing
Clearly huge
Exports from
The developing
World to all
Developed
Economies, due
To labor
Intensity
See Figure 13.31

20. Global Trade in Grains and Feed
Reduced
trade in grains
and feeds as
many nations
have developed
capacity in
these sectors
Exports partly
governed by
global climate
and opportunities
to exploit scale
economies in
areas with high
yields

21. Trade in Non-oil Commodities
Includes:
metals,
ores,
crude rubber,
wood and pulp,
hides,
cotton fiber &
other textile
fibers,
crude animal
and vegetable
materials
As in the
colonial past,
developing
countries are
the primary
sources of
these commodities,
but resource-rich
developed
economies such as
the U.S. and
Canada also have
significant
exports II