ECONOMICS 120
SUMMARY
CHAPTER 20: SOUTH AFRICA IN THE
GLOBAL ECONOMY
LEARNING OUTCOMES:
• Some key facts about South Africa's international trade
• Why the government sometimes interferes with free international trade.
• The roles played by free-trade zones and the World Trade Organisation (WTO) in
promoting international trade.
INTERNATIONAL LINKS
Economic flows between nations:
1. Goods and services flows: -
2. Capital and resource flows: factors of production.
3. Information and technology flows: Transfer of Information about one nation's
economy to another, e.g., Interest rates.
4. Financial flows: Transfer of taxes and fees in conjunction with exporting and
importing.
SOUTH AFRICA AND WORLD TRADE
The higher the volume of trade the more inefficient the production of all goods and services
of a nation is.
GOVERNMENT AND TRADE
The true benefit of international trade is the overall inc4rease in output obtained through
specialisation and exchange. International Trade enables society to use its resources in ways
that increase its output and therefore its overall well-being.
GLOBAL COMPETITION
Globalisation is the integration of industry, commerce, communication, travel and culture
among the world's nations. It is one of the major trends of our time.
SUMMARY
CHAPTER 20: SOUTH AFRICA IN THE
GLOBAL ECONOMY
LEARNING OUTCOMES:
• Some key facts about South Africa's international trade
• Why the government sometimes interferes with free international trade.
• The roles played by free-trade zones and the World Trade Organisation (WTO) in
promoting international trade.
INTERNATIONAL LINKS
Economic flows between nations:
1. Goods and services flows: -
2. Capital and resource flows: factors of production.
3. Information and technology flows: Transfer of Information about one nation's
economy to another, e.g., Interest rates.
4. Financial flows: Transfer of taxes and fees in conjunction with exporting and
importing.
SOUTH AFRICA AND WORLD TRADE
The higher the volume of trade the more inefficient the production of all goods and services
of a nation is.
GOVERNMENT AND TRADE
The true benefit of international trade is the overall inc4rease in output obtained through
specialisation and exchange. International Trade enables society to use its resources in ways
that increase its output and therefore its overall well-being.
GLOBAL COMPETITION
Globalisation is the integration of industry, commerce, communication, travel and culture
among the world's nations. It is one of the major trends of our time.
