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Trade in the Contemporary World

Transport, technology and the global supply chain

  • 3 things to know
  • Component 02

Overview

Recall questions on global supply chains, containerisation, TEUs and economies of scale in shipping, East Asian container ports, submarine cables and air freight, just-in-time production and its risks, the 2021 blockage of the Suez Canal, tradeable services, and why supply chains have lengthened.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

How did containerisation change international trade?

Numbers

In which decade did container shipping begin?

Key term

What does TEU stand for in shipping?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is a global supply chain?

    Model answer

    A global supply chain is the sequence of firms and locations in different countries through which raw materials are turned into a finished product and delivered to consumers.

  2. 2

    How did containerisation change international trade?

    Model answer

    Standard steel boxes allowed cargo to move between ship, train and lorry without repacking, cutting loading time, theft and freight costs so far that long-distance trade in bulky goods became viable.

  3. 3

    In which decade did container shipping begin?

    Model answer

    Container shipping began in the 1950s, with the first converted container voyage sailing in 1956.

  4. 4

    What does TEU stand for in shipping?

    Model answer

    TEU stands for twenty-foot equivalent unit, the standard measure of container ship capacity.

  5. 5

    Explain how economies of scale in shipping have lowered the cost of trade.

    Model answer

    The largest vessels carry over 20,000 TEU, so crew, fuel and port charges are spread across far more cargo, reducing the transport cost of each item to a tiny fraction of its price.

  6. 6

    Why are the world's busiest container ports concentrated in East Asia?

    Model answer

    East Asia manufactures most of the world's traded goods, so ports such as Shanghai and Singapore sit at the loading end of the main export flows and also act as transhipment hubs.

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AThe lower quartile is the 2nd value, 11 cm.
BThe upper quartile is the 6th value, 16 cm.
CThe interquartile range is 16 − 11 = 5 cm.

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The sunspot cycle lasts about 11 years.
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