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When Comparing the Composition of World Trade in the Early

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When comparing the composition of world trade in the early 20th century to the early 21st century, we find major compositional changes. These include a relative decline in trade in agricultural and primary-products (including raw materials). How would you explain this in terms of broad historical developments during this period?


Definitions:

Activity Level

A measure of the volume of production or business actions, often influencing cost behavior and managerial decisions.

Rental Charges

Costs associated with leasing or renting property or equipment.

Fixed Cost

Expenses that do not change in total regardless of the level of production or sales activity, such as rent, salaries, and insurance premiums.

Machine Hour

A machine hour is a unit of measurement representing the operation of machinery or equipment for one hour, used in calculating cost allocation and operational efficiency.

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