Tina Lin Lei

CIA4U

United 5 Seminar Presentation

Global trade

Specialization

•Absolute and comparative advantages•Pros/cons •Organizations and agreements•International monetary fund and its impacts•Multilateral and bilateral negotiations

OUTLINE

“Globalization, in an economic contest, is

the movement of goods, services, technology,

investment, ideas and people throughout the

world.”

GLOBALIZAITON

Absolute and comparative advantages1. Definition

TOPIC ONE

Apples Peaches

Canada 1000 600

United States 800 1400

Total 1800 2000

Apples Peaches

Canada 1000 500

United States 1200 800

Total 2200 1300

Apples Peaches

Canada 1000 500

Unites States 1200 800

Total 2200 1300

OPPORTUNITY COST

For producing peaches:

Canada: producing 1 peach needs to give up 2 apples (1000/500=2)

United States: producing 1 peach needs to give up 1.5 apples

(1200/800=1.5)

Therefore, the United States should use all its resource to produce

peaches since they have lower opportunity cost to in peach

production.

Activity: Calculate the opportunity cost of producing one peach for each country.

What are some positive and negative side of SpecializationGlobal trade?

DISCUSSION QUESTION

Positive effect:1. Higher output2. More variety 3. Competition and

lower prices

Negative effect:1. Independence 2. Monopoly3. Unemployment

SPECIALIZATION

Positive effect:1. Outsourcing2. Lower price 3. Increased production 4. Innovation 5. Better jobs 6. Increased capital flow

Negative effect:7. Lost Canadian jobs8. Fear of job loss9. Loss of Canadian

productivity 10. Exploitation of cheap

labour11. Increase in the income

gap12. Influence of MNCs on

government

GLOBAL TRADE

General Agreement on Trade and Tariff Canada, US, and 21 other nations International agreement to reduce trade

barriers.Total of 8 roundAverage tariff reduced from 40% to 5%.Volume of national merchandise trade

multiplied 20-fold.

GATT

World Trade Organization A Multilateral trade

negotiationReplaced GATT in 199512 more countries joinedAverage tariff continued to

fall

WTO

A multilateral trade negotiation involves simultaneous agreements among a number of nations.A bilateral negotiations involves only two nations.

The roles of WTO

Liberalize world trade

Sole power to adjust based on the dispute.

Removing trade barriers.

Issue of intellectual property rights

Rules regarding foreign investment by

multinationals

WTO CONTINUED

International Monetary FundThe International Monetary Fund (IMF) is an

organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.

IMF

Haiti, as it is one of the poorest countries, is now facing huge debt of $268 million after the earthquake, which is mainly owned by IMF. Although it was wiped out latter, Haiti government borrowed another $50 million which is going to be charged by 0.5% in the future. Even though they get the aid from IMF, they will need to pay them off eventually. It could be another financial crises for Haiti when IMF calls the money back.

REAL WORLD EXAMPLE

Haidi

REAL WORLD EXAMPLES

# Does IMF help or hurt the poor countries?

DISCUSSION QUESTION

1. Go to the website: Socrative Student (GOOGLE IT!)

2.Login the room number: 182420

REVIRW THE KNOWLEDGE

Dearden, Nick. "IMF Debt Cancellation for Haiti at Last (and a

New Loan)." CADTM -. CADTM, 30 July 2010. Web. 23 May 2013.

"Haiti’s Martelly Marks Two Years in Office." Caribbean Journal

Haitis Martelly Marks Two Years in Office Comments. Caribbean

Journal Staff, 15 May 2013. Web. 23 May 2013.

WORK CITED

McManus, Wade. "IMF Imperialism in Haiti." Collegian Archives. N.p.,

n.d. Web. 23 May 2013.

Riley, Geoff. "Specialisation and Trade." Specialisation and Trade.

Tutor22, 23 Sept. 2012. Web. 23 May 2013.

"Top Ten Reasons to Oppose the IMF." Top Ten Reasons to Oppose the

IMF | Global Exchange. N.p., n.d. Web. 23 May 2013.

WORK CITED

Tina

May 24th,2013

THANK YOU