In this time I'm decide to write totally away from my previous articles. As I'm being a management student, the things which I already feel and my experiences will include in near future. For my first step consider which is most importing part in industrial management, marketing.As the first Management article name called
"Patterns of world trade "
For easy to explain I mainly divided it in to two parts,
- Merchandise trade in area wise
- Merchandise trading product wise
Merchandise trade in area wise
First consider about trade in Asia (Japan, China and India). And also how they are emerging global economic players in Asia. Because they already have,
- High economic growth rate
- Rapidly rising share in world in world exports
- Large inflows of foreign investment
- Engines of demand growth in commodities
- Positive demographics
American countries merchandise trade
Major imports trading partners are, Asia and Europe.Their main importing product categories such as, office equipments, telecom equipments, iron and steel, clothing, toys, sporting items and footwear etc.. and also exporting items
, automobiles, aircrafts, chemicals, agricultural Products etc..
European countries
Major traders are, Germany, Norway, Sweden. Major exporting products such as, automobiles, chemicals etc.. and Importing products such as, spices, dyes, sugar, pearls, precious stones, woven materials etc..
African and Middle East Countries
Major traders are, South Africa, Morocco, Dubai. Exporting products such as, oil, clothing, fish etc.. Importing products such as, automobile, agricultural product and telecom equipment etc..
Food & Agricultural SectorIn general low cost producing countries are the market leaders in agriculture sector.They compete easily on the world market with countries with a high cost agricultural structure. Market leaders are benefit from specialization and comparative advantage to achieve more goods at lower resource cost. Competitiveness influence by many other factors in agricultural industry,
- Input prices (Specially labor)
- New technologies use to improve production efficiency
- State policy towards international trade
Automotive IndustryThe Automotive industry is the industry involved in the design, development, manufacture, marketing and sale of motor vehicle. In motor vehicle production at present the leading counties are Japan, USA, Germany. At the end of the 2007 Markets in USA, Western Europe and Japanese are standing while South America and Asia are growing.
At present Automotive industry moves to China and India. High end Automobile require lots of design, very tight engineering tolerance and often a grade deal of manual labor in finishing.
India and China gaining the competitive advantage in above factors as their improvements in technology and low labor cost. They have huge labor cost advantage and thy will retain important economies of scale in their domestic markets over other countries. So we can suggest that more and more of the world Automobile industry migrate to those two countries in next 25 years.
Textile & Clothing
Manufacturing of textile & Clothing moving to Asian Countries. most Asian countries seem to be on the winners' side. India has increased its share of textile and garment deliveries to the US and European. China is reinforcing its penetration of the major TC markets, with modern factories and cheap labor.
Electronics Products Many of the world's major electronics companies are based in Japan. Japanese Firms have the ability to both design in grater functionality, and performance for any given size product or to reduce the size or cost of the product at any given level.
Conclusion
To explain the patterns of International trade is difficult, because by using one or two theories we cannot exactly explain the existing patterns. When time passed the strategies used by the companies and countries are changed.
As an example Some countries using Factor endowments to Expand their business in the world market and some countries trying to reached the world market by using the technology.
If we consider the world merchandise Exports of manufacturing goods are moving to Asian countries Gradually. In the future we assume that technology will not be a powerful factor in the merchandise trade to gain competitive advantage since the development of the telecommunication sector and the movement towards the global products. If they do not having the required technology or advanced Factor endowments such as skilled labor they invest in other countries where they can gain the competitive advantage. Global Products is another strategy that some companies are used as they lack in factor endowments.
Finally we can say that international Trade occurs because of
- Relative price changes in factor endowments (Especially in Advance Factors)
- Differences in the level of technology
- Differences in the level of efficiency
- Position in Basic factor endowments
We cannot exactly develop a Trade theory which we can explain the International trade completely.
All above informations are highly recommended me. I hope that you have wide practical knowledge and bit of theoretical things about the world trade patterns and if you need more information about regrading this topic plz comment me.
(comment s really appreciate)
Thank you
