1. Chapter 2: Globalization
Charles van Marrewijk
International Trade
Chapter 2: Globalization

2. 2.2 world income and trade, log scale
income (GDP)
Note: in a log graph with time on horizontal axis the slope of the line reflects the growth rate
trade (export + import)

4. 2.3b world trade and income growth; 5-year moving average, %

6. 2.5 traditional and fragmented production processes
I. traditional production process
production block country A firm 1
inputs
markets
The link between globalization and fragmentation is analyzed in Chapter 15
II. globalized fragmented production process
inputs
production block 1 country A firm 1
production block 2 country B firm 1
service
link
service
link
inputs
production block 3 country C firm 2
production block 4 country A firm 1
service
link
service
link
markets
inputs
inputs

7. 2.6 development of world income per capita; 0-2014, log scale

8. % below world average (country = 100) -400 Iraq
% above world average
2.7 Leaders and laggards in income per capita: a widening perspective
Switzerland
Australia
USA
Netherlands UK
200
Italy
Iran
Iraq
Italy
1600
1700
1800
1900
2000 1
1000
1500
Many
Many
Other Africa
Western Offshoots
Western Offshoots
New Zealand
Australia
India
-200
New Zealand
China
% below world average (country = 100)
-400
Iraq

9. 2.8 carrying capacity of European merchant fleets; 1470-1780, metric tons

10. 2.9 two waves of globalization; merchandise exports, % of GDP

11. A rise in Britain import demand
price
2.10 international trade and market integration
America export supply
A rise in Britain import demand
Britain import demand
quantity

13. 2.12 London external bond spread; 1870-1940, fourteen core and empire bonds

14. 2.13 foreign capital stock; assets / world income, 1860-2000

15. 2.14 relative migration flows; western europe and western offshoots, 1870-2010

16. Russia
Brazil
S Africa
China
India

17. China
India
Russia
Brazil
S Africa

18. 2.16 global Gini coefficient; 1970-2050, base scenario

19. 2.17 projection of world distribution of income, 2010 – 2015
500
2010
2020
2030
millions of people
2040
400
2050
300
200
100
10,000
income level
log scale
100
1,000
100,000
1,000,000

20. 2.18 projection of regional distributions of income, 2010-2050
120
2.18 projection of regional distributions of income,
Year 2010 SA
millions of people EA 60
SSA
OECD
120
1,000
10,000
100,000
income level
log scale
1,000,000 SA
Year 2050
millions of people EA
SSA 60
OECD
100
income level
log scale
1,000
10,000
100,000
1,000,000