Latin America, continued

• Relatively weak internal trade relationships compared to Europe or North America

• Relatively strong trade relationships with Europe

• A growing trade relationship with Asia• High debt levels, high debt service, and

strong pressure from IMF leading to currency devaluation, austerity, and angry reactions to the global north

Brazilian Trade

Trade withArgentina,Paraguay,Uruguay

?? Why not part of Mercosur

Includes computersand peripherals

Japanese Trade

Imports dominatedby lower valueraw materials

Exports dominatedby high-valuemanufacturedproducts

Modest tradeties with nearbyChina and Korea

Japanese Trade Surplus – has led to huge financial holdings abroad including real estate, T-bills, Cash, powerful banks, and is fueled by restrictions on sales in the Japanese market (such as rice)

Japanese Auto Sales: Exports in 1991 were about double their level in 1998

Does not convey the foreign production power of Japanese automakers

Fig 13.14 Japanese Auto Exports – Note the big decline from previous figure

Chinese TradeMost of thisIs “re-exports”

Huge growth in export trade; strong inward foreign investment (ownership restrictions); special economic zones; highly unbalanced development; impact of WTO membership; impact of realignment of the Yuan

Hong Kong Employment Trends

Hong Kong Employment Trends

0

200

400

600

800

1000

1200

1975

1979

1983

1987

1991

1995

Job

s in

Th

ou

san

ds

Mining & quarrying

Manufacturing

Electricity & Gas

Construction Sites

Wholesale & retail

Transport, Storage,Communications

F.I.R.E. & BusinessServices

Community & SocialServices

Public Sector

Hong Kong Re-Exports and Export/Import Jobs

Hong Kong Re-Exports & Export/Import Jobs

0

200

400

600

800

1000

1200

1400

1977

1980

1983

1986

1989

1992

1995

1998

Re-Exports $1990

Export/importjobs (thousands)

Fast Growth Sectors in China and South Korea

Must be $ billionsStrong growthIn infrastructure

Decline?

Movement of labor intensivework out of Korea as wagesrise to near European levels

Imports & Exports in Taiwan and South Korea

U.S. accountsfor about ¼ ofTaiwan and S. Korea trade.

Strong ties toJapan

Diverse exportsIn high-techIndustry, and Much FDI by S. Korean and Taiwanesecorporations

Australian Exports and Imports

Raw material exporter; small country w/o scale economies in productionOf many manufactured goods, leading to imports (Japan, U.S. EU)

EU?

India – Exports & Imports

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

VeryDifferentMix of Imports And ExportsComparedTo otherCountries In the text

Other Countries

• South Africa – exports largely of rawmaterials, imports of more highly manufactured products

• Russia – downfall of Soviet system & collapse of bases for economic growth. Corruption, inefficient industrial organization

• The Middle East – Oil dominated exports, but textiles are important (Egypt) and specialized industries in Israel (diamond cutting and polishing

Trade Flows in Microelectronics

Numbers inthe textdo notcorrespondto the values inthis figure

Dominated by MexicoAnd East Asia

Trade Flows in Automobiles

Again, numbersin figure differfrom those in the text

MostlyFromMexico

Droppingas domesticproductionby Japanesefirms rises

Global Rise of Japanese Auto Manufacturers

Figure 13.27 documents the global production presence of GM and Ford

Global Trade in Steel

Strong exportsFrom JapanAnd EU:A capital-Intensive sector

?Lack ofIntra-countrydata & data differ from text

Global Trade in Textiles and Clothing

Clearly hugeExports from The developingWorld to allDevelopedEconomies, dueTo labor IntensitySee Figure 13.31

Global Trade in Grains and Feed

Reducedtrade in grainsand feeds asmany nationshave developedcapacity inthese sectors

Exports partlygoverned byglobal climateand opportunitiesto exploit scaleeconomies in areas with highyields

Trade in Non-oil Commodities

II

Includes:metals,ores,crude rubber,wood and pulp,hides,cotton fiber & other textilefibers, crude animaland vegetablematerials

As in the colonial past,developingcountries arethe primarysources of these commodities,but resource-richdeveloped economies such asthe U.S. and Canada also havesignificant exports