EC1111 Lecture 1 Top 4 Nations (by population) 1) China 2) India 3) United States 4) Indonesia Top 4 Nations (by land area) 1) Russia 2) China 3) Canada 4) United States Income To measure the value of all goods and services we distinguish: · GDP = Gross Domestic Product (located in a country) (Production capability of country in monetary terms) · GNP = Gross National Product (residents of a country) o GDP + net receipts of factor income = GNP E.g. Japanese people making cars in Sweden counts as Japan GNP. Also, remittance payments to relatives back in Japan. To correct for the large differences in prices between countries (especially for non-traded goods and services) the United Nations International Comparison Project calculates: · Purchasing Power Parity exchange rates Top 4 Nations (by income) - 1999 1) United States 2) Japan 3) Germany 4) United Kingdom Income per capita International Trade & the World Economy; @ Charles van Marrewijk Top 4 Nations (by income) - 2014 1) United States 2) China 3) Japan 4) Germany (UK 6th) Income per capita, ppp 9,900 to 41,300 (42) 4,500 to 9,900 (37) 2,100 to 4,500 (37) 400 to 2,100 (44)
Trade : Some Stylized Facts . Enormous expansion in world trade after WWII . Bretton Woods conference - fixed exchange rates to facilitate international trade . General Agreement of Trade and Tariffs (GATT), then WTO, with the objective of reducing trade barriers o Trade is growing between developed and developing countries · Dramatic expansion in exports from East Asia · Developing countries typically export largely primary products o But this has changed in Asia and a little in Latin America 500 · Huge increase in manufacturing exports from developing countries, but still a long way to go · Further growth in manufacturing exports and agricultural goods is hampered by protectionism in the first world 400 300 index (1960 = 100) 200 GDP population o e.g. subsidies to farms in the USA and in the EU 100 0 1960 1970 1980 1990 2000 World GDP increases faster than world population International Trade & the World Economy; @ Charles van Marrewijk Global Regions and International Trade Flows (% of World Total) North America N. America exports 3% to Australia ? 3 (4) Austral Asia Regional export of 6.% in N. America T3 (3) Latin America 1 (1) International Trade & the World Economy; @ Charles van Marrewijk International Trade - Leading Exporters (% of GDP) 3 (4) West Europe 1 (1) 28 170 - exports much more than _ producing or amount of its GDP goods but exporting 1.7x Because it is re-exporting 150 133 e .g. China exports Shirt, singapore unbores to places their label on it and exports it 102 99 122 115 113 107 100 88 88 1 (2) >1 (1) 50 Sub-Sahara Africa 0 Better off regions ·de more amongst selges Sonth mlernational Trade & the World teoromy; O Charles van Marrewijk Bahrain Malta Ireland Singapore Hong Kong Malaysia Swaziland Guyana