Geographic distribution of international trade - the main exporters and importers at international level

The geographic position influenced the evolution of international economic relations since the appearance of the first commercial flows among countries. Internationa trade between countries and regions led to the globalization. The interdependence of countries increased because of the deepen integration of trade, finance, people and ideas in the global marketplace.

I’ve choosen the topic of international trade and its distribution because of its multiple brought opputunties. Foreign trade led to division of labour and specialisation at the world level. Due to specialisation, unproductive lines are eliminated and wastage of resources avoided. In other words, resources are channelised for the production of only those goods which would give highest returns. Thus there is rational allocation and utilization of resources at the international level due to foreign trade.

Prices can be stabilised by foreign trade. It helps to keep the demand and supply position stable, which in turn stabilises the prices, making allowances for transport and other marketing expenses.

Foreign trade helps in providing a better choice to the consumers. It helps in making available new varieties to consumers all over the world. International trade is highly competitive. To maintain and increase the demand for goods, the exporting countries have to keep up the quality of goods. Thus quality and standardised goods are produced. It also helps in generating employment opportunities, by increasing the mobility of labour and resources. It generates direct employment in import sector and indirect employment in other sector of the economy. Such as Industry, Service Sector (insurance, banking, transport, communication), etc.

In the 1st Chapter of the prokect it will be analyzed the geographic distribution of international trade in goods and services. The analysis of the distribution of international trade will be made chiefly by world regions: North America, South and Central America, Europe, Africa, Middle East, Asia and then by countries. It will be charachterized the world trade developments in 2012 and how trade flows changed in the last year. Moreover, in this chapter will be presented the leading importers and exporters of goods and commercial flows at international level and the most exported and imported commodities.

In the 2nd Chapter the theme of the project will be addressed to the Republic of Moldova. It ill be analyzed mainly the distribution exports of our country. A review of the evolution of exports will show the tendencies of Republic of Moldova trade flows in the last decades and the main events that influenced the evolution. Furthermore, it will be presented the most important commercial agreements of our country which influenced its perspectives especially on the European Union markets. Lastly, it will be studied the export potential of a more specific sector, the walnut sector.

The objectives of the project are to present the opportunities of international trade among regions and to assess the influence of international flows on the direction of exports and imports and on the development of economies. Anothr objective is the positioning of Republic of Moldova in world treade flows as well.

I. GEOGRAPHIC DISTRIBUTION OF INTERNATIONAL TRADE IN GOODS AND COMMERCIAL SERVICES

1.1 International trade flows by world regions

The 2008 financial crisis, which became a global economic crisis, had an intensive impact on international trade flows trends. In the fourth quarter of 2008, world trade flows started to deteriorate unevenly across regions.

Year 2012 is characterized by a fall of world trade growth of 3.2 per cent, declining sharply from 5.2 per cent in 2011 to 2 per cent in 2012. World Trade Organization economists anticipate that in 2013, world trade growth will still be below 6 per cent of the pre-crisis period (1990-2008) and below 20-year average of 5.3 per cent, with a prediction rate of 3.3 per cent. The below the average rate will be caused by the economic decline in Europe which restrains global import demand. The abrupt reduction of trade in 2012 was determined by the slow growth in developed economies and of uncertainty crises over the future of the euro. Regressing output and high unemployment in developed countries reduced imports and led to a lower rhythm of export growth in both developed and developing economies.