Global International Trade

International trade has changed our world drastically over the last couple of
centuries. In this entry we begin by analyzing available data on historical trade
patterns around the world, and then move on to discuss more recent data,
outlining trade patterns from the last couple of decades. In the last section, we
turn to analyze empirical evidence regarding the determinants and consequences
of international trade.

From a historical perspective, international trade has grown remarkably in the last
couple of centuries. After a long period characterized by persistently low
international trade, over the course of the 19th century, technological advances
triggered a period of marked growth in world trade (the first wave of
globalization). This process of growth stopped, and was eventually reversed in
the interwar period; but since the Second World War international trade started
growing again, and in the last decades trade expansion has been faster than ever
before. Today, the sum of exports and imports across nations is higher than 50%
of global production. At the turn of the 19th century this figure was below 10%.

In the last couple of decades, transport and communication costs have decreased
across the world, and preferential trade agreements have become more and
more common, particularly among developing countries. In fact, trade among
developing nations (often referred to as SouthSouth trade), more than tripled in
the period 19802011.

Free international trade is often seen as desirable because it allows countries to

specialize, in order to produce goods that they are relatively efficient at
producing, while importing other goods. This is the essence of the comparative
advantage argument supporting gains from trade: exchange allows countries to
do what they do best, and import the rest.

Available empirical evidence shows that while trade does lead to economic
growth on the aggregate, it also creates winners and losers within countries so
it is important to consider the distributional consequences of trade liberalization.
Trading globally gives consumers and countries the opportunity to be exposed to
new markets and products. Almost every kind of product can be found on the
international market: food, clothes, spare parts, oil, jewelry, wine, stocks,
currencies and water. Services are also traded: tourism, banking, consulting and
transportation. A product that is sold to the global market is an export, and a
product that is bought from the global market is an import. Imports and exports
are accounted for in a country's current account in the balance of payments.
Increasing international trade is crucial to the continuance of globalization.
Without international trade, nations would be limited to the goods and services
produced within their own borders. International trade is, in principle, not
different from domestic trade as the motivation and the behavior of parties
involved in a trade do not change fundamentally regardless of whether trade is
across a border or not. The main difference is that international trade is typically
more costly than domestic trade. The reason is that a border typically imposes
additional costs such as tariffs, time costs due to border delays and costs
associated with country differences such as language, the legal system or culture.
Another difference between domestic and international trade is that factors of
production such as capital and labor are typically more mobile within a country
than across countries. Thus international trade is mostly restricted to trade in
goods and services, and only to a lesser extent to trade in capital, labor or other
factors of production. Trade in goods and services can serve as a substitute for
trade in factors of production. Instead of importing a factor of production, a
country can import goods that make intensive use of that factor of production
and thus embody it. An example is the import of labor-intensive goods by the
United States from China. Instead of importing Chinese labor, the United States
imports goods that were produced with Chinese labor. One report in 2010
suggested that international trade was increased when a country hosted a
network of immigrants, but the trade effect was weakened when the immigrants
became assimilated into their new country
Volume of merchandise exports and imports by level of
development, 2012Q1-2015Q4

Source: WTO Press Release

The preliminary figure of 2.8% for world trade growth in 2015 refers to the
average of merchandise exports and imports in volume terms, i.e. adjusted to
account for differences in inflation and exchange rates across countries. This
figure is in line with our most recent forecast of 2.8% from last September, but
that forecast did not predict some regional developments.

Exports from North America came in below expectations, while shipments from oil
exporting regions (Africa, Middle East and the Commonwealth of Independent
States) were stronger than anticipated. Meanwhile, European imports were
stronger than predicted while those of oil producing regions were weaker. The
relative strength of Europe's trade can be explained by the recovery of intra-
European Union trade, while the softness of oil producers' imports is explained by
low oil prices, which deprive these countries of the export revenues that they
need to pay for imports.

Source: WTO Press Release

Negative import growth in South and Central America in 2015 was mostly due to
the severe and ongoing recession in Brazil, although other distressed countries in
the region contributed to the negative result as well.
Contributions to world trade volume growth by region, 2011-
2015
Annual % change

Source: WTO Press Release

Asia also did more than any other region to lift merchandise export volume growth
between 2011 and 2014, but its contribution fell below that of Europe in 2015. In
the latest year, Asia was responsible for 1 percentage point of the 3.0% rise in
world merchandise exports, or 35% of export growth, whereas Europe's 1.3
percentage point contribution accounted for 44% of the rise.

North America's contribution to exports growth in volume terms was close to zero
in 2015 as demand for US goods slowed in Canada, Asia and South and Central
America. Meanwhile, South and Central America and other regions made small
positive contributions to export volume growth. The combination of increased
export volumes in oil producing regions and falling imports in Asia likely
contributed to falling energy prices in 2015, as oil supply outstripped energy
demand, causing prices to plunge

Source: WTO Press Release

The fact that all geographic regions were affected to varying degrees by the trade
slowdown in the first half of 2015, although the impact was strongest in the
second quarter. Imports of resource dependent economies (mostly in South and
Central America and Other regions) were squeezed by falling export revenues and
did not see their imports recover in the second half of 2015, whereas imports of
the more industrialized regions (Europe, North America, Asia) staged a partial
recovery in the second half.
 Merchandise trade volume and real GDP, 2012-2017
Annual % change

Sources: WTO Secretariat for trade, consensus estimates for GDP.

World merchandise trade by region and selected economies,
2015
$bn and %
Source: WTO Secretariat.

Source: WTO Secretariat.

World commercial services trade by region and selected
economies, 2015
$bn and %

Source: WTO and UNCTAD Secretariats

Leading exporters and importers of merchandise trade, 2015
$bn and %
Countries in the World by Its Highest Valued Export:
Unsurprisingly, much of the world runs on oil, particularly the Middle East and
Central Asia. Europe is the world's workshop, where most of the machinery and
motor vehicles are made, from optical instruments to BMWs. Latin America brings
a blend of food products and oil to the trading table. Asia is the world's
manufacturing center, where the world's clothing, wood products, and
semiconductors are made. Africa is extremely rich in natural resources, particularly
precious metals and oil. A substantial part of the continent makes its money on
diamonds, gold or oil.
 Major Player for International Trade:
International trade helps to grow and support a nations economy. Some nations,
in fact, take part in so much international trade that the combined value of all of
their imports and exports exceeds their entire gross domestic product, or GDP.
While these countries are smaller markets and may therefore be overlooked by
many businesses in their market entry strategies, they have incredibly high rates
of trade for their size and could make ideal expansion targets.

Major Player for international trade 2015(billion EUR)

Source: eurostat statics explained

International Trade of Major Countries:
United States (US):
Export & Import: The total value of US trade in Goods (export and import)
worldwide from 2004 to 2015 (in billion US dollars) is given below
US Trade Balance:

The world map of US trade balance in 2015 is given below:

US trade with China:
China is currently our largest goods trading partner with $598 billion in total (two
way) goods trade during 2015. Goods exports totaled $116 billion; goods imports
totaled $482 billion. The U.S. goods trade deficit with China was $366 billion in
2015.

US Exports of trade goods to China

US imports of trade goods from China
US China Trade Wars in the near term and long term
President elect Trump claimed during his campaign that he would designate China
as a "currency manipulator," imposing a 45 percent tariff on imported Chinese
goods. He has also urged opposition to TPP and globalization.

Experts at a seminar held by the Center of China and Globalization think

opportunities can be found to improve the China-U.S. relationship.

An Gang, a senior editor and journalist at World Affairs, holds the view that
Trump's promises to cut taxes for enterprises and return manufacturing jobs to
the U.S. are likely to pose the most major obstacles for China-U.S. cooperation
under his leadership. However, Trump also said he would improve the
infrastructure of the U.S., and Chinese companies may have a chance to
participate in this effort in the future, according to An.

Zhou Xiaojing, former director of the Asia-Africa Development Research Institute

under the Development Research Center of China's State Council, also believes
that Trump's success may bring more favorable than troubling news for China-
U.S. relations. However, China should still make preparations and take measures
to handle pressure on the RMB exchange rate and China-U.S. trade.

Trump mentioned imposing a tariff of 45 percent on all imports from China. But
he later avoided specifics and he has limited power to do so anyway. The law
allows him to impose tariffs of no more than 15 percent, and for as long as 150
days, on all imports, unless a national emergency is declared. Other laws allow
him to impose tariffs on targeted goods.

Should Mr. Trump want to signal an aggressive stance quickly, he could move
against imports of steel and aluminum from China. The Obama administration has
been preparing to file a World Trade Organization case against China over claims
that it subsidized aluminum exports. And the United States, Japan and the
European Union already complain that Chinese government subsidies have
 produced a bloated domestic steel industry that they say dumps millions of tons
of excess goods on world markets each year.

China is more vulnerable given the sheer amount of stuff it sells to America. For
more than a decade, China has consistently exported about $4 worth of goods to
the United States for each $1 of goods that it imports. Exports to the United
States represent about 4 percent of the Chinese economy; American exports to
China are only about two-thirds of 1 percent of the United States economy.

Source: US census Bureau

United Kingdom:
the UK's biggest export in the year to date was nuclear reactors, boilers,
machinery and mechanical appliances (including parts thereof). Mineral fuels,
mineral oils and products of their distillation,bituminous substances and mineral
waxes followed in second place, although incidentally it was also the most highly
imported product in 2011 rising by 46% on the year.

UK Exports
Vehicles other than railway or tramway rolling-stock, and parts and accessories
thereof ranked as both third highest import and export. In the year to date
(October 2011) the UK exported 23bn worth and spent 32bn on importing
these items.

UK Imports
 UK Trade and Current Account Balance (% of GDP):
In 2015,the UK`s current account deficit was 96.2 billion pound up from a deficit
of 92.5 billion pound in 2014.the deficit in 2015 equated to 5.2% of GDP at
current market prices.

Source: www.tradingeconomics.com/united-kingdom
China:
The statistic shows China's total import and export value from 2010 to 2015. In
2014, the total value of Chinese imports and exports ranged at about 26.4 trillion
yuan. In 2012, China surpassed the United States to become to the world's largest
trading country in terms of export sums and imports of goods.

China Exports
China Imports
China`s Import as a percentage of world total (in 2015)
China Trade Balance
 Russia:
Russia total imports in 2015 stood at USD 177292663000, declined from 2014s
USD 286648777000. The country recorded the highest import value in 2012,
when it purchased goods worth USD 316192918000. And the lowest trade figures
of Russia imports stood at USD 41865362000 in 2001. China was the largest
exporter country to Russia imports in financial year 2015-16. It did the business of
USD 34077598000 with Russia during the said period. Lets have the complete
Export Genius Russia imports report from 2001 to 2015 right away, whilst
accessing the import data of Russia trade..

Russia Import Value 2001-2015 (USD000)

Source: http://www.tradingeconomics.com/russia
 Russia Export Value 2001-2015 (USD000)

Source: http://www.tradingeconomics.com/russia
Russia Current Account:
Russia recorded a Current Account surplus of 1900 USD Million in the third
quarter of 2016. Current Account in Russia averaged 11667.08 USD Million from
1994 until 2016, reaching an all time high of 39286.00 USD Million in the first
quarter of 2012 and a record low of -3637.00 USD Million in the second quarter of
1998.

Russia Current Balance Jan14-Jul15 (USD Million)

Japan:
Japan is the 4th largest export economy in the world and the most complex
economy according to the Economic Complexity Index (ECI). In 2014, Japan
exported $714B and imported $754B, resulting in a negative trade balance of
$40B. In 2014 the GDP of Japan was $4.6T and its GDP per capita was $36.6k.

The top exports of Japan are Cars ($93.3B), Vehicle Parts ($33.9B), Integrated
Circuits ($31.1B), Industrial Printers ($15.2B) and Refined Petroleum ($12.7B),
using the 1992 revision of the HS (Harmonized System) classification. Its top
imports are Crude Petroleum ($116B), Petroleum Gas ($80.1B), Refined
Petroleum ($23.9B), Computers ($19.7B) and Coal Briquettes ($16.7B).

Source: International Trade Statistics Yearbook 2015

The top export destinations of Japan are China ($131B), the United States
($128B), South Korea ($52.5B), Other Asia ($37.4B) and Hong Kong ($36B). The
top import origins are China ($166B), the United States ($67.5B), Australia
($43.1B), Saudi Arabia ($42.5B) and the United Arab Emirates ($37.5B).

Source: International Trade Statistics Yearbook 2015

Japan is an island and borders China, South Korea, the Philippines, North Korea,
Taiwan and Russia by sea.
Germany:
Germany is the 3rd largest export economy in the world and the 3rd most
complex economy according to the Economic Complexity Index (ECI). In 2014,
Germany exported $1.41T and imported $1.13T, resulting in a positive trade
balance of $271B. In 2014 the GDP of Germany was $3.87T and its GDP per capita
was $46.4k.

The top exports of Germany are Cars ($163B), Vehicle Parts ($63.2B), Packaged
Medicaments ($52B), Planes, Helicopters, and/or Spacecraft ($31.8B) and Human
or Animal Blood ($20.8B), using the 1992 revision of the HS (Harmonized System)
classification. Its top imports are Crude Petroleum ($53.3B), Cars ($47.3B), Vehicle
Parts ($38.2B), Refined Petroleum ($31.1B) and Computers ($27.7B).

Source: International Trade Statistics Yearbook 2015

 The top export destinations of Germany are the United States ($121B), France
($119B), the United Kingdom ($100B), China ($96.7B) and the Netherlands ($85B).
The top import origins are the Netherlands ($113B), China ($101B), France
($85.4B), the United States ($61.6B) and Italy ($61.3B).

Source: International Trade Statistics Yearbook 2015

Germany borders Austria, Belgium, Switzerland, the Czech Republic, Denmark,

France, Luxembourg, the Netherlands and Poland by land and the United
Kingdom and Sweden by sea.
India:
India is the 18th largest export economy in the world and the 50th most complex
economy according to the Economic Complexity Index (ECI). In 2014, India
exported $292B and imported $421B, resulting in a negative trade balance of
$129B. In 2014 the GDP of India was $2.05T and its GDP per capita was $5.7k.
The top exports of India are Refined Petroleum ($53.9B), Packaged Medicaments
($12.1B), Jewellery ($11.8B), Rice ($7.75B) and Cars ($5.82B), using the 1992
revision of the HS (Harmonized System) classification. Its top imports are Crude
Petroleum ($122B), Gold ($31.1B), Petroleum Gas ($17.7B), Diamonds ($17.5B)
and Coal Briquettes ($15.4B).

The top export destinations of India are the United States ($35.9B), the United
Arab Emirates ($29.6B), China ($13.9B), Saudi Arabia ($13B) and the United
Kingdom ($10.6B). The top import origins are China ($52.5B), Saudi Arabia ($30B),
the United Arab Emirates ($24.4B), Switzerland ($21.3B) and the United States
($18.2B).

India borders Afghanistan, Bangladesh, Bhutan, China, Burma, Nepal and Pakistan
by land and Indonesia, Sri Lanka, Maldives and Thailand by sea.
 Bangladesh:
Bangladesh is the 61st largest export economy in the world and the 136th most
complex economy according to the Economic Complexity Index (ECI). In 2014,
Bangladesh exported $33.4B and imported $36.9B, resulting in a negative trade
balance of $3.49B. In 2014 the GDP of Bangladesh was $172B and its GDP per
capita was $3.12k.

Source: International Trade Statistics Yearbook 2015

The top exports of Bangladesh are Non-Knit Men's Suits ($5.26B), Knit T-shirts
($5.25B), Knit Sweaters ($4.17B), Non-Knit Women's Suits ($3.32B) and Non-Knit
Men's Shirts ($2.37B), using the 1992 revision of the HS (Harmonized System)
classification. Its top imports are Refined Petroleum ($2.24B), Heavy Pure Woven
Cotton ($1.31B), Raw Cotton ($1.15B), Light Pure Woven Cotton ($1.12B) and
Palm Oil ($1.01B).
The top export destinations of Bangladesh are the United States ($5.23B),
Germany ($5.11B), the United Kingdom ($3.13B), France ($2.24B) and Spain ($2B).
The top import origins are China ($11.7B), India ($6.22B), Singapore ($3.13B),
Indonesia ($1.38B) and Hong Kong ($1.37B).

Bangladesh borders India and Burma.

Bangladesh Trade with USA:

Bangladesh is currently our 58th largest goods trading partner with $6.1 billion in
total (two way) goods trade during 2013. Goods exports totaled $712 million;
Goods imports totaled $5.4 billion. The U.S. goods trade deficit with Bangladesh
was $4.6 billion in 2013.

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