Geography 1. Trade

Latin America is a group of countries in western hemisphere. Latin America exports foodstuffs, raw materials and manufactured goods.

Malaysia is a country in south-east Asia. Rubber and tin are found abundantly in Malaysia.

Industrial countries export finished products to the less industrial countries. Mostly a developed country is an industrial country.

1. China - silk

Explanation: China is a country in Asia and a major producer of silk. People living in China were the inventors of silk fabric and were exporting in bulk through silk route.

2. Oil - middle east

Explanation: middle east is a transcontinental region centred in Western Asia. Oil was first discovered in the Middle East. The Kingdom Of Saudi Arabia is the largest exporter and producer of mineral ore.

3. Paper- Canada

Explanation: The paper and pulp industry in Canada is one of the country ’s most important and profitable industries mostly concentrated near Ontario. This industry developed here because the climate is favourable for timber trees.

4. Africa – mineral ores

Explanation: African countries are the biggest exporters of mineral ores and tropical raw materials and importers of manufactured goods.

5. Tin - Malaysia

Explanation: Malaysia is a country in Asia. Tin ore in Malaysia is the oldest industries in Malaya.

Trade within the country is called internal trade. Internal trade is also known as domestic trade. It is the exchange of domestic goods within the boundaries of a country.

Industrial raw materials are primary products. Without raw material industry can't produce anything because for production of anything raw material is must.

Switzerland also known as Swiss confederation is a sovereign state in Europe. It is a developed country famous for manufacturing watches.

Bilateral trade is exchange of commodities between two countries. Multilateral trade is between a numbers of countries.

Two major categories of commodities that enter into world trade are agricultural commodities and minerals.

Trade is the action of buying and selling goods and services. Trade occurs because of surplus of goods in one place and demand for same in another place. This difference of natural resources of countries forms the basis of trade between the countries.

the climate of a country is the deciding factors of the production of raw materials or food crops in that country. Climate also determines the natural habitat of most of the people living in that area, resource of food, fuel, income and shelters. It also helps in determining the surplus amount of materials grown and to be made as an exchange of commodities. All these things and conditions decide what to sell and what to buy.

Balance of trade is the difference between the value of country’s imports and exports in a given time period. It is used to measure the economic health of a country. It is also known as international trade of balance.

If a country export is a greater value than its imports, it is called trade surplus, or positive balance, if a country imports a greater value than its exports, it is called trade deficit, or negative balance. In the words of the economy, the trade deficit is considered bad point in balance of trade of a country.

there are 4 basic factors that influence the trade:

•The geographical position of the country- if a country is near the coastal region then it is good for navigational trade. But if a country is situated in a mountainous region it becomes difficult to trade.

•The natural resources- availability of natural resources determines the surplus resource to be traded to the countries having great demand of that natural resource. But deficit of natural resource of a country causes the negative balance of trade.

•The economics of the country- the economic development of a country can directly affect the trade of a country. Developing countries have relatively backward economy, so the foreign trade is relatively less in that region.

•The political factors- the political or international relation also impacts the trade between the countries. Countries which are allies help each other economically by trade. And the country’s bad political relation to the others can block the trade with country causing a trade deficit.

Major trading regions of the world include:

•Europe- the exports in this region is mainly the finished and semi-finished products. Imports are basically industrial raw materials. Europe is highly industrialized regions and shares about 30% volume of trade.

•North America- USA together with Canada export machinery, automobiles, chemicals, and other products.

•Latin America- together are Caribbean islands and central and South American countries. They are exporters of foodstuffs and raw materials and import manufactured goods.

•Africa- African countries are exporters of mineral ores and tropical raw materials. They import manufactured goods.

•Asia- they export raw materials and minerals. They export manufactured goods except Japan.

•Australia- Australia exports agricultural products and minerals. They import food grains, petroleum and machinery.

•Canada and Sweden - paper and pulp exporters.

•Middle east and gulf countries- oil exporters

•Malaysia- rubber and tin exporter.

Tamil Nadu exports: automobiles, software,, electronics, telecommunications equipment, armaments, locomotives, steel, aluminum, transportation equipment, tyres, textiles, leathers, chemicals, cement, seafood, vegetables, fruits, tea and coffee.

Tamil Nadu imports:- metal ferrous ore and metal scraps, fertilizers manufactured, coal, coke, gold, pearls, petroleum, crude oil, wheat, iron and steel.

the countries from which five important commodities are imported by India from different parts of the world are:

•USA

•CHINA

•SAUDI ARAB

•UNITED ARAB EMIRATES

•SWITZERLAND

MAJOR IMPORTERS OF COMMODITIES TO INDIA

Currencies of the following countries are

i. USA – United States dollar ($)

ii. Germany - Euro (€) (EUR)

iii. Sri Lanka – Sri Lankan rupee (LKR)

iv. Korea- North Korean won (₩) South Korean won (₩)

v. Japan- Yen ( �)

vi. Brazil- Real (R$)

vii. Kuwait - Kuwaiti dinar (KWD)

viii. Russia- Russian ruble (₽)

ix. Singapore- Singapore dollar

x. Morocco- Moroccan dirham

(i) Association of Southeast Asian Nations is an intergovernmental organization constituting 10 south East Asian countries. It promotes intergovernmental cooperation and facilitates security be it political and military or economical. It maintains sociocultural integration among members. It is major partner of the Shanghai cooperation organization (SCO). It was created on 8^th August 1967. Members of ASEAN are: Singapore, Brunei, Malaysia, Thailand, Indonesia, Vietnam, Philippines, Laos, Cambodia, and Myanmar.

(ii) Organization of petroleum exporting countries is an intergovernmental organization of 15 nations, founded in 1960. Its headquarter is in Vienna, Austria. These 15 countries account for 44% of global oil production and accounts for 81.5% of oil reserves. It coordinates and unifies the petroleum policies of its member countries and ensures the stabilization of oil markets. OPEC members are: Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, and the Republic of the Congo, Saudi Arabia (the de facto leader), United Arab Emirates, and Venezuela. Indonesia is a former member.

(iii) European union country consists of 28 member states. The member states of the European Union are subjected to binding laws in exchange for representation within the common legislative and judicial institutions. Member states constitute Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, spain, Sweden, united kingdom.

(iv) World trade organization intergovernmental organization that regulates international trade. Came into force on 1^st january 1995. It is the largest international economic organization in the world.

The WTO deals with regulation of trade in goods, services and intellectual property between participating countries by providing a framework for negotiating trade agreements and a dispute resolution process aimed at enforcing participants' adherence to WTO agreements, which are signed by representatives of member governments. Its headquarter is in Geneva.