Question

• Step 2: State what the graph is showing.
• Step 3: Describe the trend(s) or pattern(s) observed in the figure.
• Step 4: Interpret the figure. (Write a whole paragraph for this step, connecting it to material learned specifically in this class.)
  Figure 1: Number of headings changed in the Harmonized System 2017 Edition (HS 2017) compared to earlier HS editions 644 HS 1992 1332 560 HS 1996 1153 HS 2002 508 948 HS2007 124 799 44 HS 2012 578 Number of headings merged Number of headings split Note: The Harmonized Commodity Description and Coding Systems (abbreviated HS) classifies traded goods and is used by nearly all countries in the world. Countries use this numbering system for customs processes like determining if tariffs are owed on an imported good. In essence, it gives number codes to each kind of product that is traded. Since its invention in 1988, it has gone through revisions to update it to keep up with real world changes. In revisions, merged headings are often the result of product categories no longer needed because there is little trade that falls in a heading; split headings are often the result of growth in trade of a new type of product. The most recent version was published in 2017, and is referred to as HS 2017. Source: UN Trade Statistics Branch
  

Answer 1

What is the graph denoting?

The graph shows the the Harmonized Commodity Description and Coding System, also known as the Harmonized System (HS) of tariff nomenclature is an internationally standardized system of names and numbers to classify traded products. It shows the change in the headings split and merged with each revision of the system.

Trend:

Over the years, the initital trend showed a large percentage of headings merged into categories long with split apart. However this trend has minimised over the years as more and more headings have split.

Interpretation

This maybe because of the increase in trade in electronics which has a high product differentiation. This could also be due to a larger number of countries joining the WTO with a wide variety of products.