2thechangingstructureofworld__outputandtrade.pptVIP

The Change Structure of World Output and Trade Since the end of the WWⅡ, the world has experienced a period of extremely rapid economic growth. On average, world output has grown at a faster rate than in any other period of history. A major cause of the growth in output has been the rapid growth of world trade. Throughout this period, world trade consistently grew faster than world output. This faster expansion of trade relative to output has three implications. 1. The trade has been growing faster than output implies an increase in the degree of international specialization between countries. 2. It also implies that those countries that have shared in the process have become increasingly interdependent. “shocks” from one part to other parts Three implications of trade expansion 3. At the same time, the growth of world trade has brought important changes in the structure or composition of world trade. -----First there are some important changes in the geographical composition of world trade. This shows the share of world trade accounted for by a different countries or regions. ------Second, structural shifts have also taken place in the commodity composition of world trade. ------Third, the growth of service trade has been rapid. Learning Goals To understand the growth and pattern of world output after WWⅡ To understand the driving momentum behind the quick growth of word trade and the changing structure in world trade both in geography and composition Key Words NICs new industrial countries Trade-led growth the expansion of trade has led the growth in output rather than following it OPEC Organization of Petroleum Exporting Countries Finished manufactures The final products which have undertaken the complete process of production Semi-finished manufactures The products which have been subject to a degree of processing but which must pass through further stages of manufacturing before the good is in a condition for sale to t