International Trade and Transportation
Trade
Domestic Trade
This trade takes place within a country. It can be:
- Wholesale trade: Carried out by wholesalers who buy large quantities of goods from producers and sell them to other traders or companies.
- Retail trade: Selling smaller quantities of goods directly to consumers.
Foreign Trade
This trade is conducted between countries. It includes the sale of domestic products (exports) and the purchase of foreign goods (imports).
Trade Balance
The difference between the value of a country’s exports and imports. A positive trade balance occurs when exports exceed imports. A negative trade balance occurs when imports exceed exports.
Balance of Payments
A record of all economic transactions between a country and the rest of the world, including goods and services. A surplus occurs when revenues exceed expenditures. A deficit occurs when expenditures exceed revenues.
International Trade
Modern international trade moves enormous quantities of diverse products and requires efficient, high-capacity transportation at reasonable prices. It creates a global network of relationships and employs many people, alongside the transport sector. This activity is increasingly concentrated within a limited number of companies.
International Business Exchange
Since the second half of the 20th century, international trade has grown significantly, encompassing wider areas and increasing economic value. The largest trade volumes occur between the European Union, Japan, China, other East Asian states, and the United States. Manufactured products are the most important traded goods. Trade among EU member countries is substantial, facilitated by a dense global transportation network. Other countries play a less active role, primarily exporting raw materials and agricultural products.
Trade Flows
Trade involves the movement of goods between sellers and buyers.
Flows of Raw Materials
Basic raw materials are central to international trade. Producing countries are not always the largest consumers. Raw materials represent about 40% of world trade, with oil being the most important.
Flows of Manufactured Goods
Large amounts of money constantly circulate globally, enabling bank loans, investments, and the buying and selling of company shares. The largest capital flows occur between the United States, Japan, and the EU, with poorer countries participating less.
Flow of Information
Information and communication technologies allow instant dissemination of news and knowledge worldwide. However, the spread of these technologies is uneven, depending on each country’s development level.
Trading Blocs
Globalization has led many countries to form trading blocs to reduce rivalries and regulate trade flows. These blocs often share characteristics like proximity, customs unions, industrial redistribution, and a united front for coordinated efforts.
Transportation
Transportation is the activity of moving people or goods from one place to another. Roads, railways, ports, and airports are essential infrastructure.
Functions of Transportation
Transportation enables daily movement of people, facilitates long-distance travel, and makes the distribution of goods possible.
The Transportation Revolution
The main goals are to carry larger quantities of people and goods faster, safer, and more economically. Significant changes include:
- Increased tonnage: Primarily in ships, trucks, and aircraft.
- Intermodality: Combining multiple modes of transport.
- Increased speed: Affecting rail and air travel.
- Improved road infrastructure: Reducing travel time.
- Increased safety.
- Reduced transportation costs.
- Advances in telecommunications.
Transportation Networks
Transportation networks consist of lines (axes) connecting two or more points, forming a mesh covering a territory with varying density. Central axes are transportation hubs. The structure is uneven, with economically important areas (Western Europe, the United States, Canada) having dense networks. Poorer countries and less developed regions have sparser networks.
Ground Transportation
Land-based transport is the most used system, with a dense but non-homogeneous global infrastructure network.
Road Transport
The most used infrastructure for moving people and goods. The road network is the densest and most structured of land transport systems.
Rail Transport
Optimal for medium and long distances, for both passengers and goods. Trains are fast, economical, and safe, allowing for the transport of heavy and bulky products. However, they have a drawback: the inflexibility of railway tracks. Improved techniques allow for greater passenger and cargo capacity:
- High-Speed Trains (TGV): Offer advantages for medium distances and require less land than highways. However, they consume a lot of energy and are less suitable for goods transport, and they have a significant land impact.
- Tilting Trains: Can use existing infrastructure and circulate at speeds approaching TGVs, with lower maintenance costs and energy consumption.
Air Transport
Most suitable for long-distance travel and light, high-value goods due to its speed and safety, but it is expensive. Aircraft consume a lot of fuel, require large areas, and rigorous maintenance. Effective air transport relies on airports.
Water Transport
Ideal for moving heavy or dangerous goods long distances cheaply. Sometimes complemented by river transport, although rivers may have irregular water levels or obstacles. Disadvantages include slow speed, limiting its use for passengers and some dangerous goods. There are also risks to marine ecosystems.