One of the key factors underlying the success of the fastest growing economies is integration into the world economy through international trade. Many countries remain isolated and international trade makes up only a small share of their GDP. There are many reasons for this. Tariff and non-tariff barriers to trade are one reason, but these have fallen to very low levels in many parts of the world. It can also be costly to transport goods between countries.
There is wide dispersion of transport costs across countries. Table 1 gives the average cost for shipping a container of goods. This includes fees associated with completing the procedures to export or import the goods, such as costs for documents, administrative fees for customs clearance and technical control, customs broker fees, terminal handling charges and inland transport. For example, in the UK it costs $1,160, which is about £800, to import a container.
Your organisation does not have access to this article.
Sign up today to give your students the edge they need to achieve their best grades with subject expertise
Subscribe
