South Africa And The Global
Economy
Chapter 20
International Linkages Must import goods from other nations.
VOLUME: 4 South Africa & world as a
Several economic flows link the South
whole, volume of international trade
African economy with the economies
has been increasing. However, South
of other nations.
Africa’s volume of imports has
TRADE FLOWS: South African
exceeded the growth in exports which
exports goods and services
has negative implications for the trade
to other nations and imports goods and
balance.
services from them.
DEPENDENCE: South Africa = heavily
CAPITAL & RESOURCE FLOWS:
dependent on other countries for
South African firms establish
capital equipment and oil. A high
production facilities (investment) in
percentage of SA agricultural and
foreign countries and foreign firms
mineral sectors also rely on sales
establish production facilities in South
abroad.
Africa.
INFORMATION AND TECHNOLOGY Facts About South Africa
FLOWS: South Africa transmits ► South Africa has rich mineral
information to other nations about SA resources & world’s largest producer &
products, prices, interest rates and exporter of gold and platinum &
investment opportunities and exports a significant amount of coal.
received similar information from ►Exports amounted to 28% of the
abroad. GDP in 2012.
FINANCIAL FLOWS: Money is ►South Africa’s major trading
transferred between South Africa partners include Germany, China, USA,
and other countries for paying for Japan and the UK.
imports, buying foreign assets, paying ►South Africa produces 23% of
interest on debt and providing foreign Africa’s GDP.
aid. ►South Africa provides 45% of
South Africa And World Africa’s mineral production and 50% of
its purchasing power.
Trade ►South Africa is a member of the
World trade = very important 4 World Trade Organisation (WTO).
selected countries as well as openness. ►South Africa is a member of the
Openness = reflected in % of exports Southern African Customs Union
& imports in GDP. more open = 2 rest (SACU) and the Southern African
of world, higher exports & imports are Development Community (SADC).
as % of GDP. Many countries, w/
restricted resources & limited
domestic markets, cannot efficiently
produce goods citizens want.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller amywallace. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $2.92. You're not tied to anything after your purchase.
