Globalisation & Trade

International trade and its effects on SA

International Trade and SA

Globalisation has connected world economies through trade, investment and technology. SA trades with countries worldwide — exporting minerals and agricultural products, importing oil and manufactured goods. Free trade agreements reduce barriers but can also threaten local industries.

Example

SA's Global Trade

Trade agreements: • SADC (Southern African Development Community) • AGOA (African Growth and Opportunity Act with USA) • BRICS (Brazil, Russia, India, China, SA) • AfCFTA (African Continental Free Trade Area) Benefits: access to foreign markets, cheaper imports, investment Challenges: local businesses face foreign competition, job losses in some sectors

Note

Remember

Trade is essential for SA's economic growth — we cannot produce everything we need. But we must protect local industries and jobs from unfair competition. The exchange rate (Rand vs other currencies) affects trade — a weak Rand makes exports cheaper but imports more expensive.

Key Vocabulary

GlobalisationIncreasing economic integration between countries worldwide

Free tradeTrade without tariffs or restrictions between countries

Exchange rateThe price of one currency compared to another

TariffA tax on imported goods to protect local industry

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Globalisation

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