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nternational Tradenternational Trade& t s impact on thet s impact on theconomy of Pakistanconomy of PakistanPresented by:

Farrukh Kiani

Reg# 14426

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InternationalTrade

Internationaltrade isexchange of

capital,goods, andservicesacrossinternationalborders orterritories

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Net exports isthe amount bywhich foreign

spending on ahome country'sgoods andservices

exceeds thehome country'sspending onforeign goods

and services

Investopedia Says!!!Investopedia Says!!!

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Ricardian model

New Trade Theory

Gravity model

Neo-Ricardian trade theory

Heckscher-Ohlin model

Economists theories &Economists theories &modelsmodels

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C o u n trie s +E xp o rts Im p ortsI

Date

nited States , , , ,3 173 000 000 000 .010 esteople's Republic ofhina , , , ,2 813 000 000 000 .010 estermany , , , ,2 457 000 000 000 .010 est

apan , , , ,1 402 000 000 000 .010 estrance , , , ,1 086 400 000 000 .010 estnited Kingdom , , ,952 100 000 000 .010 est

taly , , ,918 100 000 000 .010 estouth Korea , , ,884 200 000 000 .010 est

etherlands , , ,859 700 000 000 .010 estanada , , ,813 200 000 000 .010 est

ong Kong , , ,795 600 000 000 .010 est

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Trade OrganizationsGeneral Agreement on Tariffs and

Trade (GATT)

World Trade Organization

(WTO)

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Pakistan TradeMajor Exports:Textiles

Rice

Leather goods

Sports goods

Chemicals

Carpets and rugs

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Pakistan TradeMajor Imports:Petroleum & Petroleum products

MachineryPlastics

Transportation equipment

Edible oilsPaper and paperboard

Iron and steel

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Important TermsTrade Surplus: The positive difference between net

exports and net imports

Trade Deficit:

The negative difference between netexports and net imports

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Pakistan International

TradePakistan over the years is caught

up in the Trade Deficit cycle. Its

trade deficit has been increasingover a number of years speciallyin the last 5 years it has crossed

almost $20 Billion. Lets have alook at the Exports and Importsof Pakistan, and see trade deficit

over the last 25 years.

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Export Partners of

Pakistan

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Import partners of

Pakistan

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Foreign trade statistics ofForeign trade statistics ofPakistanPakistan

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International trade

organizations Pakistan is a member of international

trade organization included:

ASEANECO

SAFTA

WTO

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Factors effecting

International TradeEnergy crisis

Oil prices

Devaluation of moneySurging Imports

High Level of Consumption

Flaws in Agriculture Productivity

Political instability

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How to increase Exports????

Decrease in Cost of production andinterest rate

Reduction of custom duties

Cost of transport should be minimized

Adoption of new productiontechniques

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How to increase

Exports????Production and export of value

added goods

Encouragement of new industries

Enhancement of labor productivity

Production and development of newproducts and goods

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How to decrease

Imports???New industries should be setting

up

For production of edible oils,seeds should be grown locally

Tea consumption should be

discouragedImport of luxurious items shouldbe banned or heavily taxed

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Searching for New

MarketsTrade agreement with new countries

should be made

Participation in trade fairs arranged byforeign countries

Seminars and trade exhibitions shouldbe arranged within country

Research for marketing should beconducted

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ContinueQuality and Packaging of International

Standard

Joint collaborations

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ConclusionThe impact of higher Trade Deficit is

very negative on the economy as it

results in problematic Balance ofPayments report, as Trade Deficitimpacts the current account of thatreport. The result is that thegovernment has to inject more justto balance this deficit. As a result wesee hyper inflation from time to time

or government looks for outside

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