Global Trade and Transport Dynamics
Key Economic Definitions
Trade Fundamentals
Trade: Consists of the purchase and sale of goods to satisfy the needs of the population.
Trade Balance: The difference between what a country sells abroad (exports) and what it buys from other countries (imports).
Balance of Payments: A record of all economic transactions between a country and the rest of the world, encompassing material goods, financial services, and resources.
Information and Movement
Information Flow: Has become widespread with the advent of Information and Communication Technologies (ICT), which permit the instant dissemination of news and knowledge globally.
Travel: The activity by which persons or goods are transported from one location to another.
Transport Systems: Air, land, and sea.
Means of Transport: Elements used to carry out transportation (e.g., trucks, cars, ships).
Transport Networks: A set of infrastructure where vehicles can move easily.
Transport Axes: Networks linking connected points.
Transport Nodes: Central sites within a transport axis.
Understanding Trade Types and Characteristics
Domestic and International Trade
Domestic Trade: Is of two types:
- Wholesale Trade: Involves large quantities; wholesalers buy and sell goods to other dealers or retail businesses.
- Retail Trade: Involves small quantities sold directly to the public (e.g., supermarkets, bakeries, shoe stores).
International Trade: The trade conducted by a country with other countries, including both exports and imports.
Key Characteristics of Modern Trade
- Moves huge amounts of products, requiring high-capacity and efficient transportation.
- Creates a network of global relationships.
- Involves a large number of people.
- Shows growing trade concentration in a small number of companies.
International Trade Development and Flows
Evolution of Global Trade
Since the 20th century, international trade has developed spectacularly. Key trading regions include the EU, Japan, China, Asia, and the Eastern U.S. The main products are electronics, electrical goods, and chemicals. Many countries participate less actively in global trade.
Major Trade Flows
Trade flows refer to the movement of goods from producers to buyers. They can be categorized as:
- Raw Materials: Basic international trade goods, constituting major trade flows (40%) of world trade.
- Manufactured Goods: Critical commercial flows, especially from industrialized countries. Emerging powers (e.g., Brazil, India, China) and newly industrialized countries in Southeast Asia are becoming new competitors.
- Capital: Mobilizes large amounts of money circulating globally. Major circulation areas include the EU, Japan, and the U.S.
The Rise of Trade Blocs
Many countries have grouped together, sharing common characteristics:
- Geographic Proximity
- Customs Union
- Industrial Redistribution
- Common Front
- Complementarity and Joint Forces
The Role and Evolution of Transport
Functions of Modern Transport
- Facilitates daily displacement of the population.
- Enables travel to distant locations, supporting tourism.
- Distributes goods and services.
The Transport Revolution: Significant Changes
- Increase in intermodal tonnage (combining various elements like planes, trains, and ships).
- Increase in speed.
- Improvement of road infrastructure.
- Reduction in transport prices.
- Advances in telecommunications.
Major Transport Systems
A dense network of infrastructure has been formed, including prominent road and rail transportation networks.
Road Transport
Widely used for transporting people and goods. It is the most dense and structured means of transportation, although differences exist between developed and underdeveloped countries.
Rail Transport
Optimal for spanning long distances. It is a fast, secure, and economic means of transport. Disadvantage: The rigidity of the railway network.