MARK 201 Chapter Notes - Chapter 7 part 1: North American Free Trade Agreement, World Trade Organization, Gross Domestic Product
Document Summary
The dollar value of world trade has more than doubled in the past decade. 75% is manufactured goods in world trade, 25% is services, transportation, education. All nations do not participate equally in world trade. China is the world"s leading exporter, followed by the u. s and germany. U. s is world"s largest importer, followed by china and germany. A country"s imports affects its exports and exports affect its imports. Trade feedback effect: as the exports of one nation increase, its national output and income rise, which leads to an increase in the demand for imports. The nation"s greater demand for imports stimulates the exports of other nation"s. Increased demand for exports of other nation"s energizes their economic activity, resulting in higher national income, which stimulates their demand for imports. Countertrade: the practice of using barter rather than money for making global sales. U. s has been the world"s perennial leader in terms of:
