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trade - Coggle Diagram
trade
- b - current patterns of international trade are related to global patterns of economic development
stability
trade encourages states to cooperate; multilateral trade agreements can contribute to political and economic stability
some bilateral agreements extend beyond trade to assist in political issues, such as strengthening democratic processes
international trade can contribute to stability and international peace, especially if nations trade under the WHO's "most favoured nation" principle
economic growth
trade stimulates production, contributing to GDP growth and further investment
employment opportunities are created, incomes are raised and poverty levels are reduced
the economic multiplier can be enforced by international trade at local, regional and national scales
development
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the removal of tariffs and other obstacles to LIDC trade help generate foreign exchange, which can be invested to reduce internal inequalities
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conflicts
trade disputes can arise over tariffs, prices, and changes in agreements
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inequalities
in many LIDCs, internal inequalities are exacerbated by trade activity
many LIDCs have limited access to global markets, worsening the development gap
skilled workers, especially men, tend to benefit the most
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- a - access to markets is informed by a multitude of interrelated factors
technology, transport and communications have increased connectivity of global supply chains
role of regional trading blocs, such as the EU
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increasing influence of MNCs, including outsourcing
- a - trade involves flows of merchandise, services and capital, which vary spatially
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services: tradeable activities producing expertise which relies on workforce skills, experience, and knowledge, rather than processing or production of physical materials
capital: accumulated wealth of any kind used in producing more wealth; this may include tangibles such as machinery and buildings, or intangibles such as investment finance
- b - there is interdependence between countries and their trading partners
EDC case study: India
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economic, political, social and environmental interdependence with trading partners
impacts of trade on the EDC, including economic development, political stability, and social equality
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