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Global Trading Environment
AndRecent Trade
Made By:Tushar Chawla
MB12D16
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Major Economies of the World
With their GDP (PPP).
United States - $15.6 trillion
China - $12.4 trillion
India - $4.8 trillion
Japan - $4.5 trillion
Russia - $3.4 trillion
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WHAT IS GLOBAL TRADINGENVIRONMENT???
Refers to Exchange of capital, goods, and
services across international borders.
Represents a share of GDP.
Guiding Principle of global trade is comparativeadvantage.
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UNITED STATES OF AMERICA
World's largest national economy since the1920s.
Second-largest trading nation in the world behind
China.
Worldsthird largest exporter, after the European
Union and China.
60% of funds used in international trade are U.S.
dollars.
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15.30%
14.60%
13.30%
5.30%4.20%
2.80%2.60%
41.90%
Trading Partners of US.
Canada
China
Mexico
Japan
Germany
South Korea
United Kingdom
Others ( Brazil , Taiwan , India,Netherlands,Italy,
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27.90%
24.80%
11.80%
9.40%
8.60%
7.60%
6.10% 3.80%
Exports of USA (2012):
$1.564 trillion
Capital Goods
Industrial Supplies
Consumer Goods
Automotive vehicles and
components
Food and beverages
Fuel , oil and petroleumproducts
Aircraft and components
Others
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22.70%
18.70%
18.40%
13.70%
13.10%
5.40%
4.80%3.10%
Imports of USA (2012):$2.299 trillion
Consumer Goods
Capital Goods
Industrial Supplies
Crude Oil
Automative vehicles and
components
Computers and Accessories
Food and beverages
Others
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China
World's second largest economy by nominal
GDP and by purchasing power parity .
China is also the largest exporter .
Second largest importer of goods in the world
The world's fastest-growing major economy,with growth rates averaging 10% over the past
30 years.
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Exports $ 1906.08 million
Imports - $ 1620.90 million
Balance of Trade - $ 285.18 million.
From 2004 to 2009 Chinas annual trade surplus has
increased 10 times.
Export includes apparel , textiles , iron ore , steel , opticaland medical equipments.
Major Export partners are
United States 17.2 %
Hong Kong 15.8%
Japan 7.4%
South Korea- 4.3%
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INDIA
Third-largest by purchasing power parity (PPP).
One of the G-20 major economies and a member
of BRICS.
India is the 19th-largest exporter and the 10th-
largest importer in the world.
India's Gross Domestic Product grew at 4.4 percent
in the second quarter of 2013- worst quarterly rate
since 2002.
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Indiasimports Rs 2342.13 billionIndiasexports Rs 1652.02 billion
Trade deficit - Rs 690.11 billion
Export includes software , petrochemicals,
pharmaceuticals , textiles , precious stones ,
machinery , iron ore.Import includes crude oil , coal , fertilizer , gold
, chemicals.
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Export Partners
Column1
U.S.AU.A.E
China
Singapore
Hong Kong
Japan
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Japan
Fourth largest by Purchasing Power Parity [10].
The world's second largest developed economy.
World's 3rd largest automobile manufacturing
country.
Exports include motor vehicles, iron and steel
products , auto parts , plastic materials.
Import Includes petroleum , liquid natural gas, coal,
semiconductors . Export to China ( 18%)
United States ( 17.7%)South Korea ( 7.7%)Thailand ( 5.5%)
Hong Kong (5.1%)
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Imports from China (21.3%)United States (8.8%)Australia ( 6.4%)
Saudi Arabia (6.2%)United Arab Emirates (5%)
Exports JPY 5783.71 billion Imports - JPY 6744.04 billion Trade deficit 960.33 billion
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RUSSIA
Fifth largest by purchasing power parity.
Russia's oil and gas production and pipeline projects have
been a primary source of Russia's economic growth.
Abundance of natural resources, including timber, preciousmetals, and particularly fossil fuels (oil, natural gas, and
coal).
Exports petroleum and petroleum products, natural gas,metals, wood to Netherlands, China , Italy , Germany.
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Imports machinery, vehicles, meat , fruits
and nut , optical instruments , iron , steel
from majorly China , Germany and Ukraine.Exports - $ 43455 million
Imports - $ 30144 million
Trade surplus - $ 13311 million
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Recent Trends in
World Trade
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Chinasexport rose 7.2% in Aug and imports rose by 7%.
Manufacturing Sector regained momentum, and service sector was at
five monthshigh.
Global oil prices rose; due to turbulence in Libya and prospects on
Syria.
GDP growth for oil companies declined.
WTO has slashed its forecast forIndias
global trade growth to 3.3%in 2013 from 4.5% .
Called for strengthening the multilateral system to enable trade to
emerge as an engine to growth.
Trade growth is expected to remain sluggish in 2013 as the economicslowdown in Europe continues to suppress global import demand.
Global trade growth may touch 5% in 2014.
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India & Japan have expanded bilateral currency swap to $ 5 billion.
They had inked bilateral swap agreement for $15 bn on 4 Dec 2012.
Lead to more dollar flows.
Russia has lifted the ban on imports of rice and peanuts after 9
months.
A positive impact on Indias export and better trade relations.
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Petroleum Minister plans to lower dollar
outflow Crude Oil Payments.
Expected to import 11mn tones at an avg
of $105 per barrel .i.e. $8.47 billion.India imports 44% of its crude oil from
Iran, as a set of against Irans import(
Rice).
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US Federal Reserves QuantitativeEasing.
A third round of quantitative easing, QE3, was
announced on 13 September 2012.
Launched a new $40 billion per month, open-endedbond purchasing program of agency mortgage-backed
securities..
On 12 December 2012, amount of open-ended
purchases increased from $40 billion to $85 billion per
month.
On 18 September 2013, the Fed decided to hold off
on scaling back its bond-buying program.
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QEs Impact on US-
Higher inflation than desired.Can fail to spur demand.
May depreciate USsexchange rates versus other
currencies.
Does not necessarily increase the
aggregated money supply.
But inflationary risks are mitigated if the
system's economy outgrows the pace of the
increase of the money supply from easing.
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Impact on Emerging Asia
Increase in Foreign exchange reserves .
During QE 1 -Capital inflow of $9 billion per
quarter .
Increase in the monetary base (in US dollar
terms).
During the QE2 period, the increase in the
monetary base was $19 billion per quarter .
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THANK YOU