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Geography Notes Part 4
Geography Notes Part 4
phy
notes
Part 4
Trade
Major Exports & Imports
Trade:
• External trade is the exchange of goods and services from one country to another.
• It creates employment.
• It opens doors for product specializations. E.g. cotton products are Pakistan’s specialty.
Export:
• Visible trade is the exchange of goods while invisible trade is the exchange of services.
Exports of Pakistan:
• Manufactured exports include sports goods, garments, carpets, cotton textiles, and surgical
instruments.
Trend of Export:
• Initially, Pakistan was exporting primary goods but now it is more focused on exporting manufactured
goods.
• Manufactured goods yield greater profit as they are value-added items.
• Export helps Pakistan in earning foreign exchange and improving the Balance of Trade.
Shortcomings:
• Most of Pakistan’s export items are cheap from cottage and small-scale industries.
Imports of Pakistan:
• It imports raw materials like iron ore, coke, manganese and crude oil.
• It also imports consumer goods including fertilizer, wheat, electrical appliances and sugar.
Trend of Import:
Shortcoming:
GDP:
• It represents the total value (monetary) of all goods that are produced in a country in a period.
GNP:
• It represents the total value (monetary) of all goods and services produced by the resources owned by
the locals of a country in a period.
USA:
• Pakistan imports from the USA wheat, oil, vegetable, and machinery.
Germany:
UK:
Saudi Arabia:
Japan:
Sri Lanka:
USA:
Germany:
• Pakistan exports carpet, rugs, cotton textile, and surgical equipment to Germany.
UK:
• Pakistan exports surgical equipment, raw cotton, rugs, and carpet to the UK.
• Pakistan exports ready-made garments, spices, and rice to UAE and Saudi Arabia.
Japan:
Trade Routes
Land Route:
• The east land route of Pakistan involves India which is not feasible due to bad relations.
• On the west are Bolan, Khyber and Khurram Pass. But it still lacks adequate road links to connect
Pakistan with CAS through Afghanistan.
• On the north is China, Karakoram Highway has strengthened trade between both countries.
• On the south-west is Iran, there is RCD that connects Pakistan with Turkey through Iran, but the road is
not properly built and maintained.
Problems:
• The topography for trade is inadequate as there are steep slopes, mountains etc.
Sea Routes:
• It also connects Pakistan to the middle east through the Arabian sea.
Problems:
• It is slow and time-consuming as compared to air routes.
Air Route:
Problems:
• It is expensive.
• It is not suitable for heavy consignments.
Balance of Trade
Balance of Trade:
Balance of Payment:
• It represents the value difference between exports and imports of goods and services.
Balance of Payment = Value of export (goods + service) - Value of import (goods + services)
• Pakistan also imports crude oil and its price in the international market is constantly increasing.
• The population has increased and so the need for imports.
• The exchange rate of Pakistani rupee against USD and Pond is unfavorable.
• Foreign governments have placed restrictions on Pakistan trade e.g. child labour issue and
environmental issues.
• Bad infrastructure.
• Pakistan should improve the infrastructure by the construction of more dry ports and seaports.
Restrict imports:
Trade Barriers:
• Quotas – that is the physical quantity of goods and restrictions on their import.