1. THE INTERNATIONAL TRADING ENVIRONMENT Session 2

2. GLOBAL TRADE FLOWS

3. PERCENTAGE OF THE TOTAL OF WORLD EXPORTS IN MERCHANDISE (2007) Country Germany United States China Japan France Netherlands Britain Italy Canada Belgium Percentage % 9.3 8.7 7.3 3.4 4.4 3.9 3.7 3.5 3.4 3.9 Source: WTO.org

4. % Changes On Previous Year: CONSUMER PRICES AND REAL GDP/GNP 2007 Country Argentina Australia Belgium Brazil Canada China Czech Rep France Germany Hong Kong India Italy Japan Malaysia % inflation rate 9.8 2.8 1.8 3.7 2.0 2.1 3.3 1.4 1.4 2.5 6.1 1.9 0.4 3.4 % growth rate 6.3 2.9 2.1 3.3 2.4 10.4 4.8 2.0 1.6 5.0 9.2 1.2 1.9 5.2 Source: The Economist (2007) Country Mexico Netherlands Poland Russia Singapore South Africa South Korea Spain Taiwan Thailand Turkey UK USA Venezuela EU % inflation rate 3.8 1.7 2.5 9.2 1.0 5.6 2.3 2.7 1.5 3.6 8.6 2.2 2.2 17.0 2.0 % growth rate 3.2 2.3 4.7 6.5 5.0 4.2 4.2 3.0 3.9 4.3 4.0 2.4 2.2 5.5 2.0

5. Trade Balance in Merchandise Trade 2007 Source: World Bank: World Development Indicators (2007) US $ Billion Argentina Australia Brazil China Germany Hong Kong Japan Mexico Malaysia +12.4 -9.4 +46.1 +177.5 +203.0 -17.9 +79.6 -5.8 +28.6 Netherlands Poland Russia Spain Taiwan Turkey UK USA EU +39.4 -4.1 +140.8 -112.8 +21.3 -53.2 -152.2 -837.2 -15.7

7. Market Entry Barriers

11. MAIN TYPES OF TRADE ASSOCIATIONS Type Economic co-operation Bi-lateral or multi-lateral trade treaty Sectoral free trade agreement Trade preference agreement Free trade area (or agreement) Customs union Common market Economic union Political Common external tariff No No No No No Yes Yes Yes Yes Free movement of capital and people No No No No No Possibly Yes Yes Yes Example Canada - EC framework agreement, APEC The Peru, Chile accord The multi-fibre agreement South African Development Cone (SADC) ASEAN NAFTA Mercosur Economic Community of West African States European Single Market European Monetary Union Would resemble federal states (e.g. US, Canada, Germany)

12. REGIONAL TRADING AREAS OF THE WORLD