Transport, Communication and International Trade — the World

Transport and communication are what turn separate places into one connected world: they move people, goods and ideas from where they are produced to where they are wanted. International trade is the exchange of goods and services across national boundaries, and it depends on that network. This chapter covers the modes of transport and their great routes — trans-continental railways, ocean routes, the Suez and Panama canals and inland waterways — then the bases of international trade, the balance of trade, the WTO and regional blocs, and the types of ports. Questions are mostly matching: a railway and its end-points, a canal and its features, a port and its type.

Land Transport — Roads, Railways and Pipelines

Roads are the most economical mode for short distances and offer door-to-door service. Highways link distant places: the Trans-Canadian Highway links Vancouver in the west to St. John’s in the east, the Alaskan Highway links Edmonton in Canada to Anchorage in Alaska, and the Pan-American Highway joins the countries of South, Central and North America. Railways carry bulky goods and passengers over long distances cheaply. Pipelines carry liquids and gases — water, petroleum and natural gas — continuously and with little loss.

Trans-continental railways and their end-points
RailwayFrom — toNote
Trans-Siberian RailwaySt. Petersburg (west) — Vladivostok (Pacific coast)Russia’s great route; the longest double-tracked and electrified trans-continental railway
Trans-Canadian RailwayHalifax (east) — Vancouver (Pacific coast)Connects Canada’s wheat belt and industrial east
Union and Pacific RailwayNew York (Atlantic) — San Francisco (Pacific)Across the USA
Australian Trans-Continental RailwayPerth (west coast) — Sydney (east coast)Across southern Australia
Orient ExpressParis — IstanbulAcross Europe to the edge of Asia

Water and Air Transport

Water transport needs no route to be built — the oceans are linked with one another — and it is the cheapest way to carry bulky goods over long distances. The Northern Atlantic sea route, linking north-eastern USA and Canada with north-western Europe, is the busiest in the world and is called the Big Trunk Route. The Mediterranean–Indian Ocean route through the Suez Canal serves more countries and people than any other; the others are the Cape of Good Hope route and the North and South Pacific routes. Air transport is the fastest and the most costly, best for light, valuable and perishable goods and for reaching otherwise inaccessible areas.

The two great shipping canals
FeatureSuez CanalPanama Canal
LinksMediterranean Sea and Red SeaAtlantic Ocean and Pacific Ocean
LocationEgypt — Port Said in the north to Port Suez in the southAcross the Isthmus of Panama, between Panama City and Colón
Opened / built1869Built by the US government in the early twentieth century
LocksNone — a sea-level canalA six-lock system, because the route rises above sea level
Length (approximate)About 160 kmAbout 72 km
EffectA new gateway from Europe to the Indian Ocean, avoiding the route round AfricaGreatly shortens the sea distance between the east and west coasts of the Americas
Inland waterways the paper names
WaterwayKey facts
RhineFlows through Germany and the Netherlands; navigable for about 700 km from Rotterdam at its mouth to Basel in Switzerland; passes the Ruhr coalfield; among the most heavily used waterways in the world
DanubeRises in the Black Forest and flows east through several countries into the Black Sea
VolgaRussia’s most important waterway; drains into the Caspian Sea; linked by canals to Moscow and to the Don
Great Lakes–St. Lawrence SeawayLinks the Great Lakes of North America to the Atlantic, with the Soo and Welland canals bypassing rapids and falls
MississippiConnects the Gulf of Mexico with the interior of the USA
⚠️ Suez has no locks; Panama has six
The Suez Canal crosses flat desert and is a sea-level canal without locks. The Panama Canal climbs over the isthmus and uses a six-lock system. Swapping these two features is the commonest trap in canal questions — and Suez is the longer of the two.

Communication carries words, messages, facts and ideas. Satellites made communication almost independent of distance, and the internet created cyberspace — the electronic, digital world of computer networks — through which information moves across the world in seconds.

International Trade — Bases, Balance and Institutions

Trade began as barter — the direct exchange of goods without money. Long-distance routes such as the Silk Route, about 6,000 km long, once linked Rome to China. Countries trade because no country is self-sufficient. The bases of international trade are: differences in national resources (geology, minerals, climate); population factors (size, distribution and cultural diversity); the stage of economic development; the extent of foreign investment; and transport.

  • Balance of trade: the value of exports minus the value of imports. If imports exceed exports it is negative or unfavourable; if exports exceed imports, positive or favourable.
  • Bilateral trade is between two countries under an agreement; multilateral trade is with many countries, often under most-favoured-nation treatment.
  • Free trade (trade liberalisation) removes barriers such as tariffs. Dumping is selling a commodity in two countries at a price that differs and is not related to costs.
  • WTO: GATT was formed in 1948; the World Trade Organization was set up on 1 January 1995 with its headquarters in Geneva. It sets the rules of the global trading system, settles disputes between members, and also covers trade in services and intellectual property.
  • Regional trade blocs encourage trade among countries that are close together and have similar or complementary trading items — for example ASEAN (headquarters Jakarta), the European Union (Brussels) and OPEC (Vienna).
Ports by specialised function
TypeWhat it doesExamples
Oil portProcessing and shipping of oil — tanker ports and refinery portsMaracaibo (Venezuela), Abadan (Persian Gulf)
Port of callDeveloped as calling points on main sea routes, where ships anchored for refuelling, water and foodAden, Honolulu, Singapore
Packet station (ferry port)Transport of passengers and mail across a short stretch of waterDover (England) and Calais (France) across the English Channel
Entrepot portCollection centre where goods from different countries are brought for re-exportSingapore for Asia, Rotterdam for Europe, Copenhagen for the Baltic
Out portA deep-water port built away from the main port to receive ships too large for itPiraeus, the out port of Athens
Inland portLocated away from the sea coast, linked to it by a river or canalManchester (by canal), Memphis (Mississippi), Kolkata (Hugli)

Key takeaways

  • Roads are cheapest for short distances and give door-to-door service; pipelines carry liquids and gases.
  • Trans-Siberian: St. Petersburg–Vladivostok; Trans-Canadian: Halifax–Vancouver; Union and Pacific: New York–San Francisco; Australian: Perth–Sydney; Orient Express: Paris–Istanbul.
  • The Northern Atlantic route is the busiest — the Big Trunk Route; the Mediterranean–Indian Ocean route serves the most countries.
  • Suez (1869, Egypt): Mediterranean–Red Sea, no locks. Panama: Atlantic–Pacific, six locks.
  • The Rhine, navigable from Rotterdam to Basel past the Ruhr, is among the busiest inland waterways.
  • Trade bases: resources, population, stage of development, foreign investment, transport. Imports above exports means an unfavourable balance.
  • WTO: 1 January 1995, Geneva. Dumping: selling at different prices in two countries, unrelated to cost.
  • Ports of call: Aden, Honolulu, Singapore; entrepots: Singapore, Rotterdam, Copenhagen; packet stations: Dover and Calais; out port: Piraeus.

Practice questions (8)

Attempt each one before opening the answer. Every explanation names the tempting wrong option as well as the right one, because that is where marks are lost.

  1. The busiest sea route in the world, linking north-eastern USA and Canada with north-western Europe and called the Big Trunk Route, is the:

    1. Cape of Good Hope route
    2. South Pacific route
    3. Northern Atlantic sea route
    4. Mediterranean–Indian Ocean route
    Show answer

    Answer: C — Northern Atlantic sea route

    The Northern Atlantic sea route joins the two most industrialised regions on either side of the Atlantic and carries the largest volume of trade, which is why it is called the Big Trunk Route. The Mediterranean–Indian Ocean route serves more countries and people, a different claim; the Cape and South Pacific routes are far less busy.
  2. Which canal, opened in 1869, links the Mediterranean Sea with the Red Sea and is a sea-level canal without locks?

    1. Suez Canal
    2. Panama Canal
    3. Welland Canal
    4. Soo Canal
    Show answer

    Answer: A — Suez Canal

    The Suez Canal in Egypt, from Port Said to Port Suez, opened in 1869 and crosses flat land at sea level, so it needs no locks. The Panama Canal joins the Atlantic and the Pacific and uses a six-lock system, while the Welland and Soo canals are parts of the Great Lakes–St. Lawrence Seaway in North America.
  3. Match List-I (railway) with List-II (end-points):
    List-I: A. Trans-Siberian Railway B. Trans-Canadian Railway C. Australian Trans-Continental Railway D. Orient Express
    List-II: I. Halifax to Vancouver II. Perth to Sydney III. Paris to Istanbul IV. St. Petersburg to Vladivostok

    1. A-IV, B-II, C-I, D-III
    2. A-III, B-I, C-II, D-IV
    3. A-IV, B-I, C-III, D-II
    4. A-IV, B-I, C-II, D-III
    Show answer

    Answer: D — A-IV, B-I, C-II, D-III

    The Trans-Siberian runs from St. Petersburg to Vladivostok, the Trans-Canadian from Halifax to Vancouver, the Australian Trans-Continental from Perth to Sydney, and the Orient Express from Paris to Istanbul. Each railway crosses a whole landmass from one coast or capital to the other, so placing the end-points on the right continent settles the code.
  4. Which inland waterway is navigable for about 700 km from Rotterdam to Basel and passes through a rich coalfield, making it one of the most heavily used waterways in the world?

    1. The Danube
    2. The Rhine
    3. The Volga
    4. The Mississippi
    Show answer

    Answer: B — The Rhine

    The Rhine flows through Germany and the Netherlands, is navigable from Rotterdam at its mouth to Basel in Switzerland, and passes the Ruhr coalfield, which keeps it heavily used. The Danube flows into the Black Sea, the Volga into the Caspian Sea, and the Mississippi links the Gulf of Mexico with the interior of the USA.
  5. Selling a commodity in two countries at a price that differs and is not related to costs is called:

    1. Bilateral trade
    2. Dumping
    3. Barter
    4. Balance of trade
    Show answer

    Answer: B — Dumping

    Dumping is the practice of selling a commodity in two countries at different prices that have nothing to do with the cost of producing it — usually cheaper abroad to capture a market. Bilateral trade is trade between two countries under an agreement, barter is exchange without money, and the balance of trade is exports minus imports.
  6. The World Trade Organization, which replaced the General Agreement on Tariffs and Trade, was set up in 1995 with its headquarters at:

    1. Brussels
    2. Vienna
    3. New York
    4. Geneva
    Show answer

    Answer: D — Geneva

    The WTO was set up on 1 January 1995 with its headquarters in Geneva, Switzerland, and it sets the rules for the global trading system and settles disputes. Brussels is the headquarters of the European Union, Vienna of OPEC, and New York is the seat of the United Nations, not of the WTO.
  7. Singapore for Asia, Rotterdam for Europe and Copenhagen for the Baltic region are collection centres where goods from different countries are brought for re-export. Such ports are called:

    1. Entrepot ports
    2. Packet stations
    3. Out ports
    4. Oil ports
    Show answer

    Answer: A — Entrepot ports

    Entrepot ports are collection centres where goods from many countries are brought in and re-exported, and Singapore, Rotterdam and Copenhagen are the standard examples. Packet stations such as Dover and Calais ferry passengers and mail across short stretches of water, out ports such as Piraeus serve large ships away from the main port, and oil ports handle tankers and refineries.
  8. Assertion (A): Ports of call developed as calling points on main sea routes, where ships anchored for refuelling, water and food.
    Reason (R): Aden, Honolulu and Singapore are examples of oil ports.

    1. Both A and R are true, and R is the correct explanation of A
    2. Both A and R are true, but R is not the correct explanation of A
    3. A is true, but R is false
    4. A is false, but R is true
    Show answer

    Answer: C — A is true, but R is false

    A correctly describes ports of call. R is false: Aden, Honolulu and Singapore are the textbook examples of ports of call, not oil ports — the oil ports named are places such as Maracaibo and Abadan, which handle tankers and refineries. Because R misclassifies the very examples, it cannot be a true statement, let alone an explanation.