Geography 2143A/B Lecture Notes - Lecture 8: Alchi, Navigability, Ras Laffan Industrial City
9 Nov 2016
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Week 8 - trade and transport: protect own industries, prevent someone from competing, four types of trade union. Free trade is less binding followed by customs union, common market, and economic union. Economic component: nafta agreement between canada, usa, and mexico, trade wouldn"t happen if both parties do not benefit, european union economic union type, nafta (1994) free trade area type. Usa has a deficit more imports than exports. Cij < (pj pi) or equal to the production cost differential. For trade to take place between 2 points the transport cost cij must less than: volume, back haul. Will not export if the transport cost and cost of production is more than the selling price. Transport cost can be as much as 10% of price of everyday consumer items: diapers, kitchen wrap and toilet paper. Freight industry is suffering from lack of demand. Capesize the biggest: to operate daily. Technology and innovation: pallets (introduced in the 1930s)
