Transcript
International trade began to assume in the 17th and 18th centuries.
The volume of trade which moved in international channels during 1947 is estimated to have been greater by at least 10 per cent than the 1946 volume and was probably slightly above the 1938 level.
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1946 1947
volume
The level of world trade in 1957 reached the unprecedented figure of just over $100 billion, thus continuing the expansion that has been
characteristic of world trade for the past ten years.
In the course of these ten years, world exports have more than doubled from $46,800 million in 1947 to $102,000 million (preliminary figure) in 1957. 0
20,000
40,000
60,000
80,000
100,000
120,000
1947 1957
Exports
The increase over 1956 amounted to 11 per cent.
Two main forces contributed to the increase:
1. world industrial production which increased by four per cent; and
2. the prices of goods, which increased by five per cent.
As in 1956, the main expansion was due to greater exports of the industrial countries, which are the world's largest traders,
Globalization: Integrating and merging of the distinct world markets into a single market……..
Economic Revenue/GDP the global trade which was just 12% of the world GDP in 1962
increased to 30% of the world GDP in 1993.
Levis jeans
The four stages
1. Domestic in focus 2. Home focus, but with exports
(ethnocentric). 3. Adapt stage two organizations marketing
mixes to overseas operations. The focus switches to multinational (polycentric) and adaption becomes paramount.
4. Global organizations which create value by extending products and programmes and focus on serving emerging global markets (geocentric)
International trade theory
To predict patterns of trade and to analyze the effects of trade policies.
1. Ricardian model: countries specialize in producing what
they produce best 2. Heckscher-ohlin model:. It predicts that countries will
export those goods that make intensive use of locally abundant factors and will import goods that make intensive use of factors that are locally scarce.
3. New trade theory: most trade is between countries with similar factor endowment and productivity levels, and the large amount of multinational production (ie foreign direct investment) which exists.
4. Gravity model of trade: The gravity model, in its basic form,
predicts trade based on the distance between countries and the interaction of the countries' economic
sizes
Top Ten Exports (Products )
Rank Name of Commodity Apr 2006 -
Feb 2007
Export Value of Goods
%Growth %Share
Value (INR in Crores)
Value (INR in Crores)
Value (INR in Crores)
1 INDIA EXPORT OF PETROLEUM (CRUDE & PRODUCTS)
76,683.05 63.10 15.02
2 INDIA EXPORT OF GEMS & JEWELLARY
62,586.53 1.98 12.26
3 INDIA EXPORT OF RMG COTTON INCL ACCESSORIES
27,520.53 7.77 5.39
4 INDIA EXPORT OF MACHINERY AND
INSTRUMENTS
26,512.59 34.08 5.19
5 INDIA EXPORT OF DRUGS,PHRMCUTES & FINE
CHEMLS
21,833.63 11.66 4.28
6 INDIA EXPORT OF MANUFACTURES OF
METALS
20,156.05 20.88 3.95
7 INDIA EXPORT OF TRANSPORT
EQUIPMENTS
19,064.44 16.43 3.73
8 INDIA EXPORT OF PRMRY & SEMI-FNSHD
IRON & STL
17,856.68 53.39 3.50
9 INDIAN EXPORTS OF COTTON YARNS, FABRICS, MADE
UPSETC
16,682.33 6.67 3.27
10 INDIA EXPORT OF IRON ORE
15,074.03 3.92 2.95
12.26
15.02
3.732.95
4.28
0
2
4
6
8
10
12
14
16
G&J PETRO Transport Iron Ore Drugs
% of share
Rank Name of Commodity Apr 2006 -
Feb 2007
Export Value of Goods
%Growth %Share
Value (INR in Crores)
Value (INR in Crores)
Value (INR in Crores)
1 India Import Of - PETROLEUM, CRUDE
& PRODUCTS
236,601.84 34.47 32.10
2 India Import Of - ELECTRONIC GOODS
65,281.46 25.32 8.86
3 India Import Of - GOLD 58,704.81 37.35 7.97
4 India Import Of - MACHRY EXCPT
ELEC & ELECTRONIC
56,216.24 43.37 7.63
5 India Import Of - PERLS STONES
30,061.51 -21.37 4.08
Top Import (Products)
6 India Import Of – IRON & STEEL
24,413.75 40.20 3.31
7. India Import Of - ORGANIC
CHEMICALS
22,405.24 18.93 3.04
8. India Import Of - COAL,COKE &
BRIQUITTES ETC
18,363.64 19.77 2.49
9. India Import Of - OTHER
COMMODITIES
18,258.34 -22.47 2.48
10 India Import of- Wheat
1,417.61 - 0.19
32.1
8.86
4.083.04 2.49
0
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10
15
20
25
30
35
Petroleum Electronic Perals Organic Che coal, cokee
% of Share
India & Global Trade: India had a significant share in the
world trade at the time of independence. However, since then there was a secular decline in India’s share in the world exports till 1980. since from 1950 to 1980 the percentage declined from 2 to 0.4. it has, how ever improved to about 0.8 by 1997 and is expected to reach one percent by 2000.
00.20.40.60.8
11.21.41.61.8
2
1950 1980 1997
percent
India’s Global shareFactor India’s share (percentage)
Area 2.47
Arable land 11.24
Population 16.78
GNP 1.50
GNP at purchasing power parity
5.45
FDI 0.5
Merchandise exports 0.7
Merchandise imports 0.8
Service exports 1.2
Service imports 1.4
India’s share of Developing Countries
Factor India’s share (performance)
Population 19.72
GNP 7.43
GNP at purchasing power parity 12.13
FDI 1.6
Merchandise exports 2.42
Merchandise imports 3.07
India’s Rank
Factor Rank Factor Rank
Population 2 Milk production 1
Area 7 Butter and ghee production 1
Arable land 2 Sugar production 2
Irrigation area 1 Merchandise exports 31
Tractors in use 2 Merchandise imports 26
Nitro fertiliser consumption 2 Service exports 22
Rice production 2 Service imports 19
Wheat production 2 GNP 12
Tobacco production 2 GNP at purchasing power parity
4
Tea production 1
Indices of Global Competitiveness
Growth competitiveness
Government express
Regulatory standard
Export promotion
Average tariff
Investment rates
Overall infrastructure
Technological sophistication
E- commerce
India 49 19 49 5 59 14 54 38 51
USA 1 25 5 26 15 41 7 1 1
Singapore 2 13 15 1 2 4 1 8 10
Finland 6 52 8 43 17 46 2 2 7
Canada 7 42 12 7 29 47 11 13 3
Hong Kong 8 2 25 45 1 11 8 18 20
UK 9 40 10 16 26 54 22 15 8
Switzerland 10 38 11 44 10 43 4 9 13
conclusion
Imports> Exports:Developing Country:
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