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International Trade: Trade Barriers, Freeing up Trade and the Work of the WTO

This resource is designed specifically for Unit 30 of the Edexcel BTEC National qualification, 'Business and the Economic Environment'.

Aim:

The aim of this resource is to enhance your understanding of how global trade policy influences business activity. By the end, you should be able to:

• Identify the main organisations overseeing the rules of world trade
• Understand the reasons why these bodies are necessary
• Enhance your understanding of globalisation
• Research into the arguments in favour of and against the globalised system of trade

Resources:

• PowerPoint Presentation - International Trade [57K]

Activity:

When looking at world trade, it has become more important than ever before to examine the phenomenon of 'globalisation'. In this Activity, we look at some of the key issues surrounding globalisation and try to make sense of some of the conflicting arguments. You will be asked to research into the pros and cons of the global trade system and make some convincing arguments for and against this process.

OK, so firstly, what is it? Globalisation can be seen as a process that enables the financial and investment markets to operate internationally, as a result of the deregulation of markets and the improvements made to communications technology. In other words, money can move freely around the world and decisions can be made affecting global production.

How does it work? By making use of modern communications:

• a British bank can use a call centre in Bombay, India to handle its customer enquiries
• a training shoe manufacturer can design in Germany, manufacture in Thailand and sell in New York

What's the problem with that? Critics say that globalisation changes domestic economies in the developing world, opening them up to powerful foreign multi-national corporations. This, they say, is a new form of imperialism.