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Transportation and Distribution Management - Discuss the importance of air transportation to global trade. Cite a real-world ca - Essay Example

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Transportation and Distribution Management Table of Contents Introduction 3 Discussion 3 Air Transport and Economic Growth 4 Air Transport and Global Trade 5 International Trade Value 5 Role of Air Transport in International trade 6 Importance of Passenger Air Services 7 Advantages of Air Transport 7 Conclusion 8 References 9 Introduction The history of airplane dates back to 1903 when Wright brothers developed the first powered, controlled, and heavier than air flight (Ferguson, 2005, p.506)…
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Download file to see previous pages Air transportation is now considered as one of the major facilitators of global trade. It offers enormous benefits to the consumers. Some of the major benefits offered by air transportation are wider coverage, fastest means of communication, and high security among various other advantages. The purpose of the study is to uncover the importance of air transport or aviation in the process of facilitating international trade. The importance of air transport in the global trade will be further supported by real world examples. In this context some real examples will be provided to depict the importance of aviation. Apart from that the report will also shed light on various areas, pertaining to the importance of aviation in cross border transaction. The advantages of making use of air transport will be also highlighted. Finally the report will conclude highlighting the extant up to which air transport acts as the facilitator of international trade. Discussion This section will mainly highlight the relevant theories and practical examples of air transport to depict its importance in the world trade. Air Transport and Economic Growth Like any other means of transportation, Air transport is allied with global trade in two different ways. First, air transport is used as a service mechanism, and secondly it is being used as a crucial intermediate service provider for a number of trading activities such as tourism. Numerous studies have illuminated the fact that it is important for every country (mostly developing countries) to focus on ensuring an effective, efficient and consistent air transport to gain maximum, from the activities of international trade. With rapid globalization and increased cross border trade activities, the importance of air transport got a greater boost. In addition, the significance is expected to further enhance due to rapid technological innovation, increased market access of multinational companies and deregulation (WTO, 2005). Despite the increasing importance, the industry has passed through difficult times. The industry constantly struggles in order to survive and sustain in the market place. Whenever a big carrier gets into problem, they make headline and if they collapses the economy of that country gets highly affected. This depicts how air transport is important even for the national economy. Air transport is thus considered to be one of the most important industries of the world. Besides its service and technical achievements makes it as a supreme contributor towards the growth and advancement of modern society. The growth is also unmatched with any other form of transportation. The rising demand of air transport is also for the reason of increasing cross border trade activities. It facilitates rapid movement of people from one place to the other and also makes possible to transport goods worth billions of dollars to several markets throughout the globe (Air Transport Action Group, 2005, p.4). Air Transport and Global Trade The most important economic benefit offered by air transport on the global trade is the ‘spin-off effect’. It plays a crucial role towards the promotion of financial growth in countries around the world. Air transport offers ...Download file to see next pagesRead More
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