Chapter 18 Foreign Trade December. 2005
Chapter 18 Foreign Trade December, 2005
Procedure 1. Summary of chapter 18 2. Students' presentations 3.In-class activities
Procedure 1. Summary of chapter 18 2. Students’ presentations 3. In-class activities
Al Introduction -From Imperial Power to European Partner o The dominant economic philosophies in nineteenth century Britain were laissez-faire(non involvement of the government in business)and free trade o After World War l, britain initially established EF TA (European Free Trade Association) in 1950 along with other non-EEC European countries o Increasingly closer union between Britain and her European partners
A1 Introduction – From Imperial Power to European Partner ❖ The dominant economic philosophies in nineteenth century Britain were laissez-faire (noninvolvement of the government in business) and free trade. ❖ After World War II, Britain initially established EFTA (European Free Trade Association) in 1950, along with other non-EEC European countries. ❖ Increasingly closer union between Britain and her European partners
A2 Imports Exports o With 1% of the world's population, Britain has approximately 5% of world's trade o Britain is the fourth or fifth largest trading nation in the world, ranking behind the USA, Germany and Japan, and sometimes France
A2 Imports & Exports ❖ With 1% of the world’s population, Britain has approximately 5% of world’s trade. ❖ Britain is the fourth or fifth largest trading nation in the world, ranking behind the USA, Germany and Japan, and sometimes France
Major trading nations; values of exports imports in us dollars (billions)2000 USA Germany Japan france Britain Italy 口 Im ports Canada 口 Exports Netherlands Belgium Switzerland 200 400 600 800 100012001400
Major trading nations; values of exports & imports in US dollars (billions) 2000 0 200 400 600 800 1000 1200 1400 Switzerland Belgium Netherlands Canada Italy Britain France Japan Germany USA Imports Exports
.o In the past, the Commonwealth countries were Britain's chief trading partners. This trade has declined and trade with europe has increased. The diagram on p. 291 shows the changing pattern of Britain's export trade
❖ In the past, the Commonwealth countries were Britain’s chief trading partners. This trade has declined and trade with Europe has increased. The diagram on p.291 shows the changing pattern of Britain’s export trade
冷 The European Union Or Britain joined the EEC in 1973 and as one of its members Britain is now part an EU trading bloc accounting for about one third of the world's trade Nowadays the nations of the European Union taken as a whole are the largest group of countries both as suppliers and markets for the UK. In 1998 they bought 58% of British exports and provided 55% of the country's imports Within the EU Germany is Britains major market and supplier of imports mainly machinery and manufactured goods including cars and chemicals Next in importance are france which sells manufactures and food to britain and the Netherlands which provide dairy produce and other food, followed by Italy, Belgium and Ireland In 1992 the Single European Market was introduced. This enables the free passage of goods, capital and labour between the member countries
❖ The European Union --- Britain joined the EEC in 1973 and as one of its members Britain is now part of an EU trading bloc accounting for about one third of the world’s trade. --- Nowadays the nations of the European Union taken as a whole are the largest group of countries both as suppliers and markets for the UK. In 1998 they bought 58% of British exports and provided 55% of the country’s imports. --- Within the EU Germany is Britain’s major market and supplier of imports (mainly machinery and manufactured goods including cars and chemicals). Next in importance are France, which sells manufactures and food to Britain, and the Netherlands which provide dairy produce and other food, followed by Italy, Belgium and Ireland. --- In 1992 the Single European Market was introduced. This enables the free passage of goods, capital and labour between the member countries
A3 THE INTERNATIONAL ROLE OF THE CITY OF LONDON The City of London has o the greatest concentration of foreign banks in the world .o a banking sector that accounts for the largest share- almost one-fifth of total international bank lending . o one of the world's biggest international insurance markets the world's largest foreign exchange market .o the largest centre in the world for trading overseas equities one of the world s most important financial derivatives markets .o the principal markets for transactions in a large number of commodities .s a comprehensive range of ancillary and support services, including legal, accountancy and management consultancy g s a history of innovation and flexibility, which contributes to London's strength as a financial centre
A3 THE INTERNATIONAL ROLE OF THE CITY OF LONDON The City of London has ❖ the greatest concentration of foreign banks in the world. ❖ a banking sector that accounts for the largest share - almost one-fifth - of total international bank lending. ❖ one of the world’s biggest international insurance markets. ❖ the world’s largest foreign exchange market. ❖ the largest centre in the world for trading overseas equities. ❖ one of the world’s most important financial derivatives markets. ❖ the principal markets for transactions in a large number of commodities. ❖ a comprehensive range of ancillary and support services, including legal, accountancy and management consultancy. ❖ a history of innovation and flexibility, which contributes to London’s strength as a financial centre
A4 MULTINATIONALS o In 1999 Britain ranked second in the world at attracting inward investment. It attracted 29% of all inward investment into the EU. Overseas businesses investing in Britain generate an estimated 40% of UK exports. 48% of inward investment projects in Britain are from the USA . British investments overseas are even greater. The uK was the worlds largest outward investor in 1999(US $212 billion), surpassing the United States for the first time since 1988. This amounts to approximately 15% of the world total
A4 MULTINATIONALS ❖ In 1999 Britain ranked second in the world at attracting inward investment. It attracted 29% of all inward investment into the EU. Overseas businesses investing in Britain generate an estimated 40% of UK exports. 48% of inward investment projects in Britain are from the USA. ❖ British investments overseas are even greater. The UK was the world’s largest outward investor in 1999 (US $212 billion), surpassing the United States for the first time since 1988. This amounts to approximately 15% of the world total
Company Product Country Ford Motor vehicles USA Philips Electrical goods Netherlands Michelin es France C Chemicals UK Haier Domestic China appliances Marks Clothing and UK Spencers food
Company Product Country Ford Motor vehicles USA Philips Electrical goods Netherlands Michelin Tyres France ICI Chemicals UK Haier Domestic appliances China Marks & Spencers Clothing and food UK
