Return to Video

Virtual Water

  • 0:02 - 0:06
    The concept of virtual water refers
    to the practice of trading commodities
  • 0:06 - 0:08
    which themselves contain water.
  • 0:09 - 0:13
    It's not always easy to trade water
    from one country to another.
  • 0:13 - 0:14
    For one thing, the water itself
  • 0:14 - 0:17
    may be difficult to transport
    in large quantities.
  • 0:17 - 0:20
    Furthermore, there may
    be political obstacles
  • 0:20 - 0:23
    when one country sells
    its water supply to another country.
  • 0:23 - 0:26
    Domestic citizens don't always like that.
  • 0:26 - 0:28
    But then think about wheat.
  • 0:28 - 0:29
    Wheat contains water.
  • 0:29 - 0:33
    For instance, it can be that up to
    1300 liters of water go into
  • 0:33 - 0:35
    growing a kilogram of wheat.
  • 0:35 - 0:38
    So, if one country is trading wheat
    to another country,
  • 0:38 - 0:41
    in essence, that country
    is also trading water.
  • 0:43 - 0:46
    In the Middle East, some countries
    have much more water than others.
  • 0:46 - 0:49
    For instance, Lebanon is a relatively
    water rich country
  • 0:49 - 0:51
    by the standards of the region.
  • 0:51 - 0:55
    So ideally, Lebanon could be trading
    more of its water resources
  • 0:55 - 0:59
    to other Middle Eastern countries
    in the form of agricultural products.
  • 0:59 - 1:03
    This doesn't always happen, of course,
    because there is not free trade in the region
  • 1:03 - 1:06
    and many countries in the region
    prefer to be self-sufficient.
  • 1:06 - 1:09
    Of course, this desire for
    self-sufficiency
  • 1:09 - 1:13
    is usually backed very strongly
    by the domestic agricultural lobbies.
  • 1:14 - 1:16
    The bottom line is this.
  • 1:16 - 1:18
    Sometimes, the most
    efficient way to trade water
  • 1:18 - 1:21
    is to trade it in the form of a tomato.
Title:
Virtual Water
Description:

Virtual water refers to the practice of trading commodities that contain water. It's oftentimes not easy to trade water from one country to another because of various political obstacles and because it is difficult to transport water. But, consider that a country trades wheat, and up to 1,300 liters of water go into growing a kilogram of wheat. In essence, that country trades water.

International Trade course: http://mruniversity.com/courses/international-trade

Ask a question about the video: http://mruniversity.com/courses/international-trade/virtual-water#QandA

Next video: http://mruniversity.com/courses/international-trade/why-did-trade-plummet-great-recession

more » « less
Video Language:
English
Team:
Marginal Revolution University
Project:
Other videos
Duration:
01:31
Joyce Roberts edited English subtitles for Virtual Water
Michel Smits edited English subtitles for Virtual Water
Michel Smits edited English subtitles for Virtual Water

English subtitles

Revisions