international trade & it’s impact on the economy
Post on 08-Apr-2018
217 Views
Preview:
TRANSCRIPT
-
8/7/2019 International Trade & its impact on the economy
1/23
nternational Tradenternational Trade& t s impact on thet s impact on theconomy of Pakistanconomy of PakistanPresented by:
Farrukh Kiani
Reg# 14426
-
8/7/2019 International Trade & its impact on the economy
2/23
InternationalTrade
Internationaltrade isexchange of
capital,goods, andservicesacrossinternationalborders orterritories
-
8/7/2019 International Trade & its impact on the economy
3/23
Net exports isthe amount bywhich foreign
spending on ahome country'sgoods andservices
exceeds thehome country'sspending onforeign goods
and services
Investopedia Says!!!Investopedia Says!!!
-
8/7/2019 International Trade & its impact on the economy
4/23
Ricardian model
New Trade Theory
Gravity model
Neo-Ricardian trade theory
Heckscher-Ohlin model
Economists theories &Economists theories &modelsmodels
-
8/7/2019 International Trade & its impact on the economy
5/23
C o u n trie s +E xp o rts Im p ortsI
Date
nited States , , , ,3 173 000 000 000 .010 esteople's Republic ofhina , , , ,2 813 000 000 000 .010 estermany , , , ,2 457 000 000 000 .010 est
apan , , , ,1 402 000 000 000 .010 estrance , , , ,1 086 400 000 000 .010 estnited Kingdom , , ,952 100 000 000 .010 est
taly , , ,918 100 000 000 .010 estouth Korea , , ,884 200 000 000 .010 est
etherlands , , ,859 700 000 000 .010 estanada , , ,813 200 000 000 .010 est
ong Kong , , ,795 600 000 000 .010 est
-
8/7/2019 International Trade & its impact on the economy
6/23
Trade OrganizationsGeneral Agreement on Tariffs and
Trade (GATT)
World Trade Organization
(WTO)
-
8/7/2019 International Trade & its impact on the economy
7/23
Pakistan TradeMajor Exports:Textiles
Rice
Leather goods
Sports goods
Chemicals
Carpets and rugs
-
8/7/2019 International Trade & its impact on the economy
8/23
Pakistan TradeMajor Imports:Petroleum & Petroleum products
MachineryPlastics
Transportation equipment
Edible oilsPaper and paperboard
Iron and steel
-
8/7/2019 International Trade & its impact on the economy
9/23
Important TermsTrade Surplus: The positive difference between net
exports and net imports
Trade Deficit:
The negative difference between netexports and net imports
-
8/7/2019 International Trade & its impact on the economy
10/23
Pakistan International
TradePakistan over the years is caught
up in the Trade Deficit cycle. Its
trade deficit has been increasingover a number of years speciallyin the last 5 years it has crossed
almost $20 Billion. Lets have alook at the Exports and Importsof Pakistan, and see trade deficit
over the last 25 years.
-
8/7/2019 International Trade & its impact on the economy
11/23
-
8/7/2019 International Trade & its impact on the economy
12/23
Export Partners of
Pakistan
-
8/7/2019 International Trade & its impact on the economy
13/23
Import partners of
Pakistan
-
8/7/2019 International Trade & its impact on the economy
14/23
Foreign trade statistics ofForeign trade statistics ofPakistanPakistan
-
8/7/2019 International Trade & its impact on the economy
15/23
International trade
organizations Pakistan is a member of international
trade organization included:
ASEANECO
SAFTA
WTO
-
8/7/2019 International Trade & its impact on the economy
16/23
Factors effecting
International TradeEnergy crisis
Oil prices
Devaluation of moneySurging Imports
High Level of Consumption
Flaws in Agriculture Productivity
Political instability
-
8/7/2019 International Trade & its impact on the economy
17/23
How to increase Exports????
Decrease in Cost of production andinterest rate
Reduction of custom duties
Cost of transport should be minimized
Adoption of new productiontechniques
-
8/7/2019 International Trade & its impact on the economy
18/23
How to increase
Exports????Production and export of value
added goods
Encouragement of new industries
Enhancement of labor productivity
Production and development of newproducts and goods
-
8/7/2019 International Trade & its impact on the economy
19/23
How to decrease
Imports???New industries should be setting
up
For production of edible oils,seeds should be grown locally
Tea consumption should be
discouragedImport of luxurious items shouldbe banned or heavily taxed
-
8/7/2019 International Trade & its impact on the economy
20/23
Searching for New
MarketsTrade agreement with new countries
should be made
Participation in trade fairs arranged byforeign countries
Seminars and trade exhibitions shouldbe arranged within country
Research for marketing should beconducted
-
8/7/2019 International Trade & its impact on the economy
21/23
ContinueQuality and Packaging of International
Standard
Joint collaborations
-
8/7/2019 International Trade & its impact on the economy
22/23
ConclusionThe impact of higher Trade Deficit is
very negative on the economy as it
results in problematic Balance ofPayments report, as Trade Deficitimpacts the current account of thatreport. The result is that thegovernment has to inject more justto balance this deficit. As a result wesee hyper inflation from time to time
or government looks for outside
-
8/7/2019 International Trade & its impact on the economy
23/23
top related