Unit 10 Trade | Geography | Pakistan Studies O level 2059 | Paper 2 | WS Studio | Geo Notes скачать в хорошем качестве

Unit 10 Trade | Geography | Pakistan Studies O level 2059 | Paper 2 | WS Studio | Geo Notes

Trade The action of buying and selling goods and services between different areas / counties is called trade. Types of Trade There are two types of trade 1. Internal Trade Trade within the country is called internal trade. 2. External / International Trade Trade with different countries is called International trade. International trade has two types. i. Exports The goods we sell to abroad called exports. e.g. Ready made goods. ii. Imports The goods we buy from abroad called imports. e.g. Tea. Importance of Trade / Benefits / Advantages 1. Specialization of production. 2. Promotes industrialization. 3. May lead to rise in GNP (Gross National Product). 4. Production of value-added goods. 5. Transfer of Information Technology. 6. Utilization of domestic resources / raw material. 7. Employment opportunities. 8. Earn Foreign exchange. 9. Increase National Income. Exports The goods we sell to abroad called exports. e.g. Ready-made goods. Pakistan like all other countries, needs to trade in order to survive. Each year we sell millions of rupees worth of goods and services to other countries. These are ‘Exports’. An export is represented by a flow of foreign exchange coming into the country. Major Exports Pakistani exports can be classified into three categories these are following. 1. Primary Goods / Commodities 2. Processed Goods / Semi Manufactured Goods 3. Manufactured Goods 1. Primary Goods / Commodities Things obtained directly from ground / Sea. These things consumed directly or can be used as raw material in different industries e.g. Raw Cotton. 2. Processed Goods / Semi Manufactured Goods Processing of raw material (Primary goods) in such a way, that it becomes useful but further processing could be possible called processed goods e.g. Cotton Yarn. 3. Manufactured Goods Final products are those in which further processing is not possible and they are ready to be sold commercially into the market e.g. Ready-made Garments. Measures to increase the Exports 1. Reducing imports specially capital and consumer goods. 2. Maintain the standard and quality of the goods. 3. Export of value-added goods. 4. Establishment of small scale industries. 5. Incentives to the investors. 6. Establishment of EPZ and industrial estates. 7. Establishment of Air ports. Imports The goods we buy from abroad called imports. e.g. Tea. An import is represented by the flow of foreign exchange leaving Pakistan. Without exports and imports, consumers would have fewer goods and services to choose from and many workers would be unemployed and many producers would go out of business. Imports of Pakistan Pakistan import large number of items from other countries. The items can be grouped as follows. Food items. Machinery. Petroleum and petroleum products. Fertilizers and other chemicals. Metals. The above items can be classified into three types of goods. These are following. 1. Capital Goods. 2. Raw material for capital goods and consumer goods. 3. Consumer goods. 1. Capital Goods The goods that are used in producing other goods. e.g. Machinery. 2. Raw Material Things obtained directly from ground / Sea. e.g. Minerals. 3. Consumer Goods The goods bought and used by consumers. OR Goods which are produced to satisfied the daily necessities of life. e.g. Soap. Direction of Imports Pakistan is importing from more than hundred countries, but 40 % of the imports come from six / seven countries like, Saudi Arabia, Kuwait, United States of America, Japan, Malaysia, Germany, UK, China and EU. Balance of Payment Balance of Payment = Value of exports – Value of imports. OR It refers to the balance of exports and imports on visible and invisible items. Visible Items It refers to the exchange of imports and exports of goods such as food items. Invisible Items It refers to the movement of finance. Balance of Trade It refers to the trade balance in visible goods i.e. exports and imports. Causes (Negative Balance of Payment) 1. Import of capital goods. 2. Import of consumer goods. 3. Import of mineral oil. 4. Import of food items. 5. Import of raw material for steel industry. 6. Less exports due to poor standard and quality. Effects (Negative Balance of Payment) 1. Developmental projects have to be curtailed. 2. Reliance on foreign assistance increases. 3. The imbalance of trade has to be filled by taking loans, which increases debt. 4. In case of non-payment of loans, an economic or trade embargo may be imposed. 5. In order to repay the loans, the assets of the country may have to be sold to foreign companies. Measures (To correct the Balance of Payment) 1. Increase exports specially value-added. 2. Reduce import specially consumer goods. 3. Stop the import of service industry. 4. Improve the standard and quality of goods. 5. Ban the export of raw material (raw cotton). #trade #geography #wsstudio #geographyofpakistan #olevel