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National 5 Trade and globalisationGlobal citizens rely on a network of communications between countries. Declining and emerging economies can have a positive and negative impact. Fair trade can protect employees and the environment. Part of Geography Global issues
quiz Test
Trade and globalisationIntroduction - what is trade?Trade is the buying and selling of goods and services between different countries around the world. Goods that are brought into a country are called imports and those that are sold to another country are called exports. Trade occurs because no country has enough raw materials or manufactured goods to be self-sufficient. Global trade has been made possible through the process of globalisation. What is globalisation?Countries throughout the world now communicate and share their cultures and goods through travel and trade. Improved communications enables products to be transported around the world rapidly. A huge global economy means that if something happens in one area it can have a knock-on effect worldwide. This process is called globalisation. Globalisation is the process by which the world is becoming increasingly interconnected as a result of a huge growth in trade and cultural exchange. Globalisation has increased the production of goods and services. The largest companies are no longer national firms, located in one single country; they are multinational corporations with businesses in many countries. Globalisation has been taking place for hundreds of years but has rapidly increased over the last 30 years or so. Globalisation has resulted in:
Although globalisation is most likely helping to create more wealth in developing countries, it is not helping to close the gap between the world's poorest countries and the richest.
National 5 Subjects
What is the buying and selling of goods and services between countries?Trade is the art of buying and selling goods and services. It helps people to make money. It can be done within a country as well as with other countries of the world.
Which trade means selling goods and services from another country?Foreign trade refers to the exchange of goods and services between different countries. It comprises both imports and exports. For example, India's import of arms from Russia and India's export of refined petroleum to Australia can be considered as foreign trade.
What is selling goods to other countries?In global trade, exporting is the process by which companies from one country sell their goods and services to companies or consumers in a different country.
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