CASE STUDY 3.2International trade to quadruple by 2050

According to a report from the international bank HSBC, which was summarised in Fairfax newspapers on 24 November 2015, international trade will increase fourfold in value by 2050. The report is quoted as saying this will result from another wave of globalisation driven by:

• global population growth increasing the number of consumers

• improved standards of living creating 3 billion more middle class consumers, mainly in emerging markets

• new technologies helping businesses reduce costs

• governments lowering barriers to trade. (Source: Based on ‘International trade to quadruple by 2050, says HSBC’, The Age, 24 November 2015.)

Analysis

1 What will happen to international trade between 2015 and 2050?

2 How will this benefit people and businesses in different countries?

Figure 3.7 As the world population grows, so does consumption