Free Essay

International Trade

In: Business and Management

Submitted By Sirsarib
Words 3082
Pages 13
CONSTRUCTION PROCEDURE FOR BIOGAS PLANTS
Construction of fixed dome biogas plants is a specialised task that can be performed by artisans who have been trained as Biogas Technicians. A radius stick ensures uniform radius of block work around the central point, pivot, and support brick before they bind during construction, especially when the plant construction starts.

1.1 PLANT CONSTRUCTION METHODOLOGY
The general methodology includes the following steps, in stages:
• Clear site and demarcate the positions of major elements of the plant.
• Prepare the site for construction.
• Excavate the digester pit, the inlet and the outlet chambers.
• Provide construction materials and organise qualified labourers.
• Organise the construction site.
Construction of the 1st phase of digesters:
• Fixing of the Reference Line
• Casting and reinforcement of digester foundation,
• Construct digester walls up to outlet pipe level
• Plastering of outlet wall
• Back-filling and ramming
• Casting of foundations for outlet chambers
• Construction of outlet trench from digester to outlet chamber
Construction of the 2nd phase of digesters
• Cross-checking of the Reference Line
• Digester construction up to inlet chamber level
• Fixing of inlet pipe from digester to inlet chamber
• Plastering of outside and inside walls
• Back-filling and ramming
• Casting of foundations for inlet chamber
• Construction of inlet trench from digester to inlet chamber
Construction of the 3rd phase
• Cross-checking of the Reference Line
• Construction of digester up to neck level
• Plastering of outside and inside walls
• Construction of outlet chamber
• Construction of inlet chamber
• Back-filling and ramming
• Construction of digester neck
• Final site levelling
• Assembling of gas piping and accessories
• Construction of structure for central gasholder.
• Installation of central gasholder.
• Installation of gas piping from digester to central gasholder.
• Installation of gas meter
• Installation of gas utilization equipment (gas stove and burner)
• Prepare short report on construction phase 3 and assembling (including a photo documentation)
• Carry out a test-run of the plant.

1.2 GENERAL LAYOUT OF A BIOGAS PLANT

Fig. 1: Position of digester to stable floor. The ideal situation is a sloping ground, falling from the stable via the digester to the crop plantation (1). On horizontal ground (2), it might be necessary to lift the floor of the stable (H).

2. PRINCIPLE OF DESIGN OF BIOGAS PLANTS

The standard fixed dome plant has a half-bowl spherical shape with flat bottom and a top opening. The outer walls rest on a foundation ring beam. The floor has no static function. The upper part of the sphere is separated from the lower part by a joint, called the "weak ring". Gas tightness of the upper part is achieved by a crack-free structure and a gas-tight inner surface plaster. The Inlet pipe is connected to the spot of dung disposal in the stable. The outlet pipe connects the digester with an expansion chamber of reduced spherical shape. The overflow of the expansion chamber - really the final outlet of the digester - leads to the slurry disposal system, i.e. the distribution channel, storage tank or compost pit.

Principle of Statics of Fixed Dome Plants

The plant consists of a non-load bearing bottom (A), the lower slurry-tight digester (B), the upper gas-tight gas storage part (C), the neck (D) and the gas-tight lid (E). Gas storage part and digester are separated by the weak-ring ( 10) in order to allow free reaction of the strong-ring (3) and to prevent cracks which have developed in the lower part of the digester to "grow" into the gas storage space. The plant rests on a foundation ring (1) bearing mainly the vertical loads of' the construction and the soil cover (7). The surrounding soil supports the construction to resist gas pressure (5) and slurry pressure (6). Concrete at the outside of the lower layer of bricks (2) helps to reduce tangential forces at the foot point (9). The ring forces of the upper part are absorbed by the strong-ring (3).

Fig. 2: Statics of the Fixed Dome Plant
3. DIGESTER CONSTRUCTION PROCEDURE

3.1 THE REFERENCE LINE

Because the slurry is a liquid, the biogas plant follows the physical law of communicating tubes. A reference line is used in construction to keep the exact levels, which are of outmost importance for the functioning of the system. Main vertical measurements of the working drawings are given in relation to the reference line. The reference line is 35 cm above the overflow of the expansion chamber and marks the lowest possible point of the stable floor from where the dung is pushed into the mixing chamber. It is also the minimum level for soil covering of the dome.

At the site, the reference line is marked by a string passing over the centre of the digester, preferably in direction from inlet to outlet. The string is fixed in absolute horizontal position with a spirit or hose-pipe level. The pegs for the reference line should be sturdy and well protected during construction time. In order not to lose the level of the reference line it is advisable to also mark it on a tree or a building near to the plant.

In case there is an existing stable, a horizontal string is fixed from the lowest point of the floor to the place of the proposed overflow of the expansion chamber. The overflow might be 35 cm or more below this string. The convenient overflow level might be decided and the string of the reference line is tied 35 cm above that point. In all cases, it will be at, or below, the lowest floor level of the stable. In case of a 16 m³ standard plant, the centre of the digester is 3,30 m away from the inlet point. The point of overflow is 5,00 m away from the centre.

In case a new stable will be constructed, the point of overflow of the expansion chamber might be decided according to the convenience of slurry disposal. A horizontal string 35 cm above this point forms the reference line. The lowest point of the stable floor might be on the same level or preferably above the reference line; but never below this level. In case of a 16 m³ standard plant, the centre of the digester is 5,00 m away from the point of overflow. The inlet chamber attached to the stable is 3,30 m away from the centre.

3.2 DIGGING THE PIT AND CASTING THE FOUNDATION

For safety of the laborers, the sides of the pit must be sloped according to the soil properties. Excavated soil should be placed 1 m away from the rim of the pit. Place of inlet and expansion chamber should be kept free from excavated soil. The pits of the digester and the expansion chamber are excavated in their proper sizes and positions down to their respective final depths. If soil is soft or of unequal strength, stone or sand packing below the foundation is required. Provide drainage facilities in case of ground or hill water.

Fig. 3: The reference line

The reference line (RL) is marked by a string during construction to maintain proper levels of essential parts of the gas plant. The lowest point of the stable floor (SF), i.e. the lowest point of the urine drain, must be 35 cm above the overflow point (OP) in order to allow sufficient depth (min. 15 cm) of the inlet chamber. On uneven ground it may be required to fix the string l m above the real reference line. Then, 1 m must be added to all measurements. The reference line may be lower than the stable floor (1).
It should never be higher as to avoid lifting up the feed material for filling the plant. The reference line also marks the necessary soil cover above the dome (4).

The foundation ring is excavated immediately before filling the concrete of the foundation. A mixture of 1: 2: 4 (cement: sand: aggregate) is used and the concrete is firmly rammed. Casting of the foundation should be done early in the day as to allow sufficient time to place the first two layers of brickwork into the fresh concrete at the same day. These two layers are back-filled with a lean concrete mixture of 1: 3: 9.

3.3 DIFFERENT SHAPES OF BOTTOM OF DIGESTER FOR STABILITY

In the construction of underground digesters, the fixed dome is preferred when considering statics and stability. Further, during excavation, the structure of the soil at the bottom further determines how the lowest part of the digester must be shaped.
A flat bottom (A) is the weakest in view of statics A conical shape (B) is much stronger and strongest solution is a bowl-shaped bottom (C).

Fig. 4: Different Shapes of Bottom of Digester for Stability

For project sites along the coast, where sandy soils are predominant, the bowl-shaped bottom is adopted for maximum stability. A design radius of 2.4 m (240 cm) will give a dome-shaped digester a volume of 40 m3.
It is further proposed that in situations where during excavation works for the digesters it has been established that the underground water table is high, rubble drains should be incorporated to protect the underground structures.

Fig. 5: Spherical Bottom Design and Brickwork of Fixed Dome Digesters.

3.4 CONSTRUCTION OF THE LOWER PART OF THE SPHERE

(1) Foundation ring of concrete 1: 2: 4; (2) First two layers of' bricks laid in cement-lime mortar 1: 1/4 : 4; (3) Supporting concrete ring 1: 3: 9; (4) Brickwork up to the bottom of the weak ring laid in mortar 1: 1/4 : 4; (5) 2 cm thick outside cement-lime plaster 1: 1/4 : 4; (6) Backfilling soil rammed in layers of max. 30 cm height.

For measuring the correct mixtures a gauge box is used (7). The brickwork is erected with the help of a radius stick (8). The radius stick is set at the centre of each brick. The surface of the brick follows the direction of' the radius stick (9). It rests with a groove at the nail of the centre point (10). Because the floor has not yet been laid, the peg of the centre point is 3 cm above the excavated ground. The upper nail (11) of the radius stick (11) marks the inner edge of the brick. The measure of the stick is reduced by 4 cm for placing the headers of the strong ring (12). When laying the bricks, they are first knocked horizontally, then vertically.

Fig. 6: Construction of the lower part of the sphere

3.5 BRICKWORK OF SPHERICAL WALL

The centre point at the bottom of the digester is the heart of the construction. The centre peg should be firmly driven in at proper position and level according to the reference line. A nail on the head of the peg marks the exact centre.

To construct the spherical masonry wall, a guide stick is used which keeps the radius constant and helps to create an absolute half bowl shape. Each brick of the wall is laid against the nail of the radius stick. It is easier to do than to describe. Just start putting brick by brick, keeping the top of the brick in the same slope as the direction of the radius stick, which is radial, pointing to the centre. Automatically, brickwork will turn out in spherical shape.

Bricks must be of good quality, preferably of 7•12•23 cm in size. If bricks are less than 5 cm in thickness they should be used in flat layers. The wall becomes then 10-12 cm thick and more bricks will be required. The bricks are soaked in water before laid into 1 cm mortar bed of mixture 1: 1/4 : 4 (cement: lime: sand). Gauge boxes are used to measure the volumes for mixing the mortar. Only sieved and washed river sand is permitted; otherwise the amount of cement must be increased if only quarry sand is available. Vertical Joints should be "squeezed" and must, of course, be offset. The inner edge of the brick forms always a right angle with the radius stick.

3.6 INLET AND OUTLET PIPE

Inlet and outlet pipe must be placed in connection with brick-laying. It is not possible to break holes later into the spherical shell; this would spoil the whole structure. The pipe rests below on a brick projecting 2 cm to the inside. Above, it is kept in position by being tied to pegs at the rim of the excavation.

The inlet pipe is of 10 cm (4") diameter. Its upper side is in line with the top of the weak ring. The outlet pipe which connects the digester with the expansion chamber is of 15 cm (6") diameter in order to avoid clogging. It starts at the bottom at the 4th layer of bricks and continues above the dome of the expansion chamber to allow poking in case of blocking. A collar of cement mortar 1: 1/4: 4 at the outside of the wall seals the Joint between the outlet pipe and the brickwork. At the level of the expansion chamber it is cut out to allow for slurry flowing in and out.

3.7 OUTSIDE PLASTER OF THE LOWER PART

Only sieved and washed river sand is to be used for plaster. After brickwork has reached the level of the weak ring, smooth plaster of 2 cm thickness and of 1: 1/4 : 4 mixture is applied all over the outside. The plaster should harden over night before back-filling of soil is done. The outer plaster protects the brickwork against roots growing into the joints. It forms also a smooth surface which reduces friction between soil and structure and thus, reduces static stress of the brickwork.

Fig. 7: Inlet and Outlet Pipe

The outlet pipe (Ø 6" ) rests on a flat brick (1) above the 4th layer of the spherical wall. At the outside of the wall it is surrounded by a mortar collar (2). The inlet pipe (0 4") penetrates the weak-ring (3). The pipe is not allowed to be higher than the top of the weak-ring, because it would then disturb the strong-ring. From the outside it is sealed only by the plaster of the lower brick work. At the top, the pipes are kept in position by pegs (4).

4.0 POSITION OF TREATMENT SYSTEM FOR EFFICIENT FUNCTION
The ideal situation is to place digester and baffle chamber at positions with gradient to allow flow with gravity (without pumping). Effluent utilisation also follows the same principle for discharge with gravity, either into the natural water way or to grow woodlots for firewood. The non-use of gadgets and movable parts like pumps and stirrers in anaerobic waste water treatment renders such systems the advantage of being simple and unsophisticated to handle. Thus gravitational flow is essential in the conservation of energy. Conventional aerobic treatment systems require energy for pumps and mechanical agitators, while anaerobic systems release energy in the form of Methane gas.

4.1 DESIGN ARCHITECTURAL DRAWINGS

Fig. 9: Slurry condition inside the CAMARTEC digester (1) Settlement of sand and soil. (2) Viscous slurry or sludge, having a TS-content of 6-7%. (3) Liquid slurry fraction, having a TS-content of 12%. (4) Floating scum, having a TS-content between 15 and
50 %. (5) Biogas.

Fig. 10: System of the fixed dome plant
The digester (1) is filled via the inlet pipe (2) up to the bottom level of the expansion chamber (3).The level of original filling is called the zero line. The gasplant is closed by a gas-tight lid (4). Under the airless (anaerobic) condition, biogas is produced. When the gas valve (5) is closed, biogas collects in the upper part of the digester, called the gas storage part (6). The accumulating gas displaces part of the slurry into the expansion chamber. When the expansion chamber is full, slurry overflows into the slurry drain for use as manure. When the main valve (9) is opened, the gas escapes off the gas storage part until the slurry levels inside the digester and inside the expansion chamber balances. The gas pressure "p" depends on the prevailing difference of the slurry levels
(10). The substrate is filled daily so that slurry flows out daily at the time when large amount of gas is stored. Regular gas consumption requires smaller gas storage space. Consequently, the zero-line will rise. While daily feeding of the plant continues, gas is released before the slurry reaches the overflow level. The slurry level rises also when there is gas leakage. The level in the expansion chamber at zero gas pressure indicates the level of the zero line. The volume of slurry above the zero line inside the expansion chamber is equal to the gas storage space.

4.2 CONSTRUCTION MATERIALS
Round-shaped underground structures have better resilience against lateral pressures, hence the preference for dome-shaped digesters. For best stability of domes, the following mix proportion table is recommended in the GTZ Biogas Handbook by Sasse et al.

Lime is added to both brickwork and plastering mortar to allow better bondage and resilience against lateral forces. Addition of waterproof cement to foundation slab and digester wall plastering renders the bio-digesters impermeable, thus preventing seepage into underground water sources. Sieved coarse sand is used for the manufacture of sandcrete blocks in brick sizes on site.

MATERIALS MIX PROPORTION TABLE
DESCRIPTION CEMENT LIME SAND AGGREGATE
Foundation concrete 1 2 4
Lean concrete (for backfilling) 1 3 9
Curved/spherical slab 1 3 6
Brickwork mortar 1 ¼ 4
Plastering mortar inside/outside 1 ¼ 4
CONSTRUCTION STAGES IN PICTURES
PIT EXCARVATION

EXCARVATION DURING DRY SEASON DURING THE RAINY SEASON, PUMPS MAY BE USED FENCING OF EXCARVATED AREA

FOUNDATION RING CASTING (RAINY AND DRY SEASON)

CONSTRUCTION OF LOWER PART OF DOME

LOWER DOME AND FIXING OF OUTLET PIPES

UPPER DOME AND POSITIONING OF INLET PIPES COMPLETED CARMATEC DESIGN BIOGAS PLANT (50 M3):
1. INLET; 2. WATER TRAP; 3. DOME NECK; 4. THREE EXPANSION CHAMERS

Literature:
1. Improved Biogas Unit for Developing Countries. SASSE L, et. al; GTZ, 1991
2. Field pictures: Biogas Engineering Ltd, 1994 to 2007
The Biogas Extension Service (BES) of CAMARTEC (Centre for Agricultural Mechanization and Rural Technology) in Arusha/ Tanzania was carried out in cooperation with Deutsche Gesellschaft fuer Technische Zusammenarbeit
(GTZ), Eschborn, Germany.…...

Similar Documents

Premium Essay

International Trade

...International Trade Simulation The term international trade is defined as the economic interaction among different nations involving the exchange of exports and imports. The main principle of international trade is comparative advantage, which indicates that every country, no matter their level of development, can find something that it can produce cheaper than another country. The purpose of the International Trade Simulation is to show how countries interact with one another when exporting and importing. International trade depends on nations working together, while looking out for their own personal interests. When I began the International Trade Simulation my strategy was to acquire as much wealth as I could for my nation, South America. As the game progressed I began to switch strategies and began to acquire as many different goods as I could for my nation, so that I could offer the people of my nation an array of goods. The global economy at the beginning of my game was horrible and did not proceed to get much better as the game went on. Even though the global economy was bad I was still able to achieve my first goal of acquiring as much wealth as I could. I did this by exporting my goods at top dollar. I found that some countries would buy what I was exporting no matter what price I would ask for even though the global economy was poor, especially when I was exporting crude oil. This made sense to me because most countries depend of crude oil for......

Words: 560 - Pages: 3

Premium Essay

International Trade

...The Heckscher-Ohlin theory explains why countries trade goods and services with each other. One condition for trade between two countries is that the countries differ with respect to the availability of the factors of production. They differ if one country, for example, has many machines (capital) but few workers, while another country has a lot of workers but few machines. According to the Heckscher-Ohlin theory, a country specializes in the production of goods that it is particularly suited to produce. Countries in which capital is abundant and workers are few, therefore, specialize in production of goods that, in particular, require capital. Specialization in production and trade between countries generates, according to this theory, a higher standard-of-living for the countries involved. New notes The Heckscher Ohlin model Introduction The Heckscher Ohlin model Predicts that different factor endowments between countries is a key issue in the international trade flows but others such a WW Leontief, who in 1954 tried o test the theory empirically, found that this model failed to explain United States trading patterns. Read more: http://www.ukessays.co.uk/essays/economics/heckscher-ohlin-model.php#ixzz2DPfWNkhU The Heckscher Ohlin assumption The Heckscher Ohlin theory explains why countries trade good and services to each other. To apply this theory countries have to respect conditions; one of those is that the countries obviously differ with respect to the......

Words: 2387 - Pages: 10

Premium Essay

International Trade

...International Trade and Finance Speech James DeBose ECO/372 January 17, 2013 Professor Pretzsch International Trade and Finance Speech This speech will discuss several topics concerning international trade and finance. The first topic of discussion will explain what happens when there is a surplus of imports brought into the United States, and the specific example used will be China trade surplus as it jumped in July 2012. China exports to the United States rose 13.6% to $165.3 billion and their exports to Europe fell 0.8%. The increase in the surplus of imports causes businesses to have more products to offer consumers, lower the prices of the products, and leads to consumers purchasing more products. Purchasing more products increases the revenue for businesses, and causes major movement of money. The next topic that will be discussed is the effects of international trade to GDP, domestic markets, and university students. International Trade helps our government and markets earn income from foreign countries. International Trade affects university students by offering school supplies such as computers more affordable because they are made and sold at a cheaper rate. University students are able to achieve a higher education when the school supplies are produced in a domestic market where the college student resides, and leaves the student more money for tuition. A government choice on tariffs and quotas has different affects on international relations and trade....

Words: 821 - Pages: 4

Premium Essay

Trade Barriers to International Trade

...WHAT IS GLOBAL/INTERNATIONAL TRADE? Global trade is the exchange of capital, goods, and services across international borders or territories. In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), it’s economic, social, and political importance has been on the rise in recent centuries. Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders. International trade is, in principle, not different from domestic trade as the motivation and the behavior of parties involved in a trade do not change fundamentally regardless of whether trade is across a border or not. The main difference is that international trade is typically more costly than domestic trade. The reason is that a border typically imposes additional costs such as tariffs, time costs due to border delays and costs associated with country differences such as language, the legal system or culture. Another difference between domestic and international trade is that factors of production such as capital and labor are typically more mobile within a country than across......

Words: 7774 - Pages: 32

Premium Essay

International Trade

...Module Code: EO314 Module Title: ISSUES IN INTERNATIONAL ECONOMICS Module Convenor: Stephen Smith ID: 03004367 Topic: INTERNATIONAL TRADE This project will attempt to research and gain an understating of whether there is linkage between trade liberalisation and poverty in (SSA) sub Saharan Africa. The project will contain a balance of key analytical approaches and empirical evidence on trade liberalisation and economic growth. In the world of economics and politics, trade and poverty is one of the major issues which has been debated over last decade. On the international stage, there is a growing concern among super powers, African leaders, and other observers that the independence and credibility of the state continues to be endangered due to the negative balance of trade, heavy dependence on international aid and the high levels of indebtedness in Sub Saharan Africa. The debt relief has come to be viewed not only as a basic condition for arresting Africa’s socio-economic decline but also for stimulating and sustaining development. Consequently, debt has had an adverse impact on the majority of the population, poverty, unemployment and socio-economic, inequalities has increased, physical infrastructures has deteriorated, political and civil conflicts have worsened and corruption has become more persistent. The concern with how to tackle the debt crisis has led to a number of developments, however the main one is for the G-8 countries to have......

Words: 3689 - Pages: 15

Premium Essay

International Trade

...cities within a country is called a trade. Through the trading process people of the respective countries or states gain a greater choice of products or services that otherwise would not be available to them. For example let’s take a look at United States and Finland. Although United States has vast forests, they can lack a certain quality that is in demand for the country, in this case the wood- based products from Finland might be of a certain quality that fills a gap in the U.S. marketplace (2008, John J. Wild). In order to fulfill the need U.S. would either purchase, sell, or exchange goods to fulfill there demand. In the olden days trade was done in a form of barter system. This is where commodities were exchanged rather then currency. Commodities that were being exchanged had equal values and were equally desirable to both parties (indianchild.com). In the modern world, money is used for exchange and the barter system is extinct. The concept of trade is centered on the simple activity of the exchange of goods and services. In relation to trade and world output, we must remember that world output almost always will influence the amount of international trade. If the world economic output decides to take a slump then it will cause the level of international trade to slow down. On the flip side if output increases then it will generate a larger amount of International trade (Associated Content, 2009). However, the primary reason why Trade and World Out put are closely......

Words: 960 - Pages: 4

Premium Essay

International Trade

...------------------------------------------------- Chapter 9 International Trade & Exchange rate ------------------------------------------------- What You will Learn in this Chapter * Study the theory of Comparative Advantage * Differentiate between Terms of Trade and Balance of payments * Explain Exchange Rate Determination * Describe the Concepts closely related to exchange rate of exchange A. The theory of comparative Advantage: In his book ‘Principles of Political Economy’, David Ricardo (1817) explained his theory of Comparative Advantage (comparative costs). This theory, subsequently modified by John Stuart Mill, is the foundation of the theory of international trade. The trade between two countries takes place because the same commodity is produced at different costs in different countries. The differences in the cost of production arise because of differences in factor endowments in different countries and the degree of specialization. Thus trade relies on cost differences. The Doctrine of Comparative costs states that a country will benefit by specializing in the production of those commodities in which its comparative cost advantage is greater, exporting these commodities in exchange for commodities in which the comparative cost advantage is less. Panel (a) illustrates the fact that over the past 40 years, the United States has exported a steadily growing share of its GDP to other countries and imported a growing......

Words: 2369 - Pages: 10

Premium Essay

International Trade

...International Trade Steven Harvey XECO/212 April 13, 2014 Timothy Simpson International Trade As we all know and have agreed on international trade is a vital part to the continuous growth of any country. International trade allows us to expand our markets for both goods and services that otherwise may not have been available to us. With international trade our market will have greater competition and therefore more competitive prices, which brings a cheaper product home to our consumer. I feel that initially we should begin trade with our neighbors for the simple facts that they are close to us and the cost of exporting and importing will be less expensive than it would be to do business with countries that are farther away, this is not to say that in the future we want do business with other countries. As we all know we have three neighboring countries that we share our borders with. They are Uthania, which thrives in agriculture with the production of mainly corn, soybeans, coffee, cocoa, and dairy and poultry products. Then we have Suntize which is a very popular tourist location and they specialize in the manufacturing of various electronics such as dvd players, computers, and etc. And last we have Alfazia they specialize in the growing of corn, rice, cotton, fruits, and vegetables. After analyzing the products each country specialize in and taking our specialties into consideration I feel as it would be in our advantage to start out producing and exporting......

Words: 263 - Pages: 2

Premium Essay

International Trade

...International trade theories and the Indian software industry Different theories developed throughout time exist regarding international trade. In this first section the most important theories will be discussed and compared, leading to an explanation of the location-specific advantages of the Indian software industry. The most well-known international trade theories are mercantilism, the theory of absolute advantage, the theory of comparative advantage, and the factor endowment theory (Heckscher-Ohlin theory). Mercantilism is based on the beliefs that a nation’s wealth depends on accumulated treasure, and that government policies should encourage exports and discourage imports so as to increase wealth (Ball et al.) Over time is has become clear that this theory contains many flaws and is not widely applicable. Whereas mercantilism is a theory which assumes that government control determines all aspects of international trade, other theories rather assume that market forces are the determinants of the direction, volume and composition of international trade (Ball et al.) When a country, firm or individual has an absolute advantage it implies that, the firm, country or individual can fabricate more goods, or the same amount of goods more efficiently than its competitors for an equivalent amount of inputs. Occasionally it occurs that a country, firm or individual solely has absolute disadvantages. In such cases the good produced at the lowest opportunity cost......

Words: 1116 - Pages: 5

Premium Essay

International Trade

...International trade is the exchange of capital, goods and/or services across international borders. Recently, there has been an increase of political, social and economic importance. Globalization, multinational corporations and outsourcing are all some examples that have a major impact on the international trade system. If there was no international trade, these territories would be limited on the goods and services produced within their own border. For me, personally, I particularly am against the unrestricted international trade. As with any important business decision come risks that must be taken into factor. When dealing with international trade, the following risks become evident: 1.(Politically): There is a risk of non-acceptance. There may be an issue where the exchange of these goods and/or services may not live up to the expectations of what one party is expecting. Thus this may lead to negative relations with other countries. 2. (Business): The expansion of international trade has opened up a wealth of opportunity for many businesses since they are able to extend operations to a global level. This opportunity both increases and diversifies the kinds of business ventures companies can embark upon, giving them a chance to expand their wings and become more competitive. 3. (Economic): Taxes are an important aspect which has an effect on international trade. Governments typically impose tariffs on any trade products, and while not normally a threat, this can put......

Words: 255 - Pages: 2

Premium Essay

International Trade

...* What are the effects of international trade to GDP, domestic markets and university students? Throughout history trade amongst international countries has existed. Countries may import and export their goods, and the prices of importing or exporting will be determined by how high or how low the exchange rate will be. The Gross Domestic Product, also referred to as GDP, is the total amount of goods and prices a country produces in one year. The International trade will have effects on GDP by expanding our markets with the importing of goods and services that are not available in this country. Products such as coffee, oil, bananas, and cars from other countries like Japan and Germany. The import of goods may increase our economy GDP and may also allow U.S. to export their own product helping other countries to have the economic expansion as our country. However, International trade provides economic expansion and diversity of goods and services that will result in more competitive prices that will increase market competition among producers, which provide domestic consumers with cheaper products. * How do government choices in regards to tariffs and quotas affect international relations and trade? Although trading and importing products is a great thing for expanding economies, it also has disadvantages. Governments impose certain restrictions and limitations for trading to protect domestic production. Governments apply taxes on......

Words: 338 - Pages: 2

Premium Essay

International Trade

...A troubling trajectory; International trade Competition in smartphones has intensified thanks to lower-cost rivals such as China's Xiaomi. It uses a similar supply chain, but slightly fewer parts are imported: the growing sophistication of Chinese manufacturers means that more components are being made at home. The rapid spread and subsequent slight retreat of such far-flung supply chains provides one possible explanation to a puzzle that is troubling policymakers: why international trade has been growing no faster than global GDP in the past few years. The notion of "peak trade" is being taken increasingly seriously. The composition of global demand could yet move back towards greater trade intensity, for several reasons. Whether trade is declining relative to GDP and why may not be clear for years. Yet one thing is: were more barriers to be lifted, especially in areas like services and farming where many still remain, it would probably lead to a new spurt in the evolution of supply chains that would lift trade far above today's "peak". Fears are growing that trade's share of the world's GDP has peaked. But that is far from certain WHEN Apple launched the iPhone in 2007, it deployed a state-of-the-art global supply chain. Although the pioneering smartphone was designed in America, and sold first to consumers there, it arrived in stores from Shenzhen, China. It had been assembled there by Foxconn International from parts made by two firms in Singapore, six in Taiwan and...

Words: 1438 - Pages: 6

Premium Essay

International Trade

... International Trade CONTENTS INTRODUCTION 3 HISTORY 4 IMPORTANCE OF TRADE 5 INTERDEPENDENCE 6 LAW OF COMPARATIVE ADVANTAGE 7 BENEFITS OF DIVERSITY 7 COMPETITIVENESS 8 ECONOMIES OF SCALE 9 FREE TRADE 10 PROTECTIONISM 10 METHODS OF PROTECTIONISM 11 MEASURES OF TRADE 12 Global Trade Risk: 14 Types of Risk, Ways to Manage 14 CONCLUSION 17 REFERENCES 18 INTRODUCTION International trade has a big influence in our day-to-day lives, even if we do not realize it, it is a fact that almost every transaction or purchase we make, we are part of the global economy. This is because products or parts of the products have point of origin all over the world. International trade is the system by which countries exchange goods and services. Countries trade with each other to obtain products that are better quality, lower cost or just different from these goods produced at home. The goods and services that a country buys from other countries are called imports, and goods and services that are sold to other countries are called exports. While trade takes place mostly between businesses, companies and governments, individual also have a frequent participation on buying and selling goods internationally. Most international trade consists of the purchase and sale of industrial equipment, consumer goods, oil and agricultural products. In addition, services such as banking, insurance, transportation, telecommunications, engineering and tourism accounted have a big role and influence, to the......

Words: 3232 - Pages: 13

Premium Essay

International Trade

...International Trade and Financial Market: Chapter 1: Issue of Globalization Globalization: Benefits: 1) Boost trade 2) Outsourcing companies benefits the most 3) Cut costs (segments below cons) 4) New experience for workers (working abroad) Shortcomings: 1) Certain segments loose their jobs. 2) Slides: Globalization: 1) Greater interdependence among nations 2) Trade, immigration, and foreign investments (find same products everywhere) 3) Movements of workforce, finance and goods 4) Cultural and environmental factors (for ex: language barriers so it can be a disadvantage) [environmental factors: environmental issues not applied in every countries, for ex polluting and dnt care about the environmental standards). 5) Occurs on political, technological, cultural and economic levels (integration of the aforementioned factors) History of Globalization: 1) 1870 – 1914 2) Technological improvements in transportation 3) Dominated by European and American businesses 4) Brought to an end by WW1 5) Great Depression prompted further limitations on trade and protectionism (protect local producers) Second wave of Globalization 1) 1945 – 1980 2) Result of reaction against nationalism following ww2 as well as lower transportation costs 3) Dominated by developed nations with developing nations largely excluded 4) Lead to a greater increase per capita income for developed countries than......

Words: 763 - Pages: 4

Premium Essay

International Trade

...qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjkl zxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmq wertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuio pasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghj klzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbn mqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwwerty uiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdf ghjklzxcvbnmqwertyuiopasdfghjklzxcvbnm INTERNATIONAL BUSINESS INTERNATIONAL TRADE: CANADA, U.S, AND CHINA 3/4/2012 MOKSHA VEERANAH | Abstract The following paper is about Canada’s trading relationship with the United States and China, the foreign exchange policies between the countries, the comparative advantages of each of the countries, Canada’s heavy reliance on the United States, and multilateral trade policy for Canada. Trade situations of Canada-U.S Despite the trade surplus between Canada and the U.S in 2009, there was still a significant decrease compared to the past year, from $78.3 billion to $20.1 billion which is almost a 75% reduction. These losses were incurred due to Canada exporting $224.9 billion worth of goods to the U.S, which fell by 33.8%, and on the other hand, importing $204.7 billion worth of goods from the U.S, which fell by 21.6%. In 2009, only the pharmaceutical preparations exports of $5.0 billion (which are only 2.2% of the......

Words: 2173 - Pages: 9