GLOBAL

TRADE
CLASSE 5A-A.S.2022/2023
COMMERCE Distribution and
sale of goods

It is divided into 2
main areas: trade
and services to
trade
 Activity of buying
and selling goods
and services

Home trade: trade

TRADE within a single
country

International trade:
trade between
different countries
 SERVICES TO TRADE

Activities giving support to trade

Some examples include: storage,

transport, banking, insurance,
communication and marketing
 Sale and distribution of
products in a country from
the producer to the
consumer

HOME TRADE

In the chain of distribution the

2 main operators of home
trade are wholesalers
(grossisti) and retailers
(commercianti al dettaglio)
HOME TRADE OPERATORS

WHOLESALERS RETAILERS

• Buy goods in bulk • Buy goods from

from producers wholesalers or
and sell them in manufacturers
smaller quantities and sell them in
to retailers small quantities to
consumers
RETAILERS CATEGORIES

OTHERS
(SUPERMARKETS,DEPARTMENT
INDEPENDENT RETAILERS STORES)

• Specialise in one • Specialise in a

product or service variety of products
Global trade

Improved
The world is technology has
becoming made faster
interconnected and easier for
as a result of countries to
globalization trade goods
and services
The waves of global trade

1950-1914: diffusion of new technologies

(steamship and the telephone) made
transport and communication between
countries easier

Europe lowered trade barriers

Sharp increase in foreign investments

1945-1980

After the II World War new organizations such

as the World Bank and the International
Monetary Fund were created to support global
trade

There were technological advances in

transport (high speed railways, supersonic
aircraft)

New commercial relations between Japan

and the Us and western European countries
1980-now

The World Wide Web has made

easier to trade goods globally

A vast amount of trading takes

place online via e-commerce

Greater inclusion of developing

countries, such as Brazil, China,
India, South Africa
INTERNATIONAL TRADE

Depending on what
Represents a
the country
significant part of
produces or needs,
the GDP of a
it can export or
country
import goods
REASONS FOR INTERNATIONAL TRADE

Some products can only be produced Some products are cheaper in some
in some areas of the world areas of the world (offshoring)
INTERNATIONAL TRADE

EXPORT IMPORT

• Process of selling • Process of buying

goods and goods and
services abroad services from other
countries
 Difference between If the country
total exports and imports more than
imports over a exports there is a
certain period of trade deficit:
time disavanzo
THE BALANCE
OF TRADE
(BOT)
If the country
exports more than
imports there is a
trade surplus:
surplus
THE BALANCE OF PAYMENTS (BOP)

Difference between the It is the record of all the

money coming into a international
country and the money transactions (foreign
going out over a investments, money
certain period of time transfer)

If the a country has If the country has paid

received money this is or given money this is
known as a credit known as debit