3.10. Trading Patterns and Relationships Flashcards
Who are the EU’s major trading partners?
China (goods)
USA (services)
What is the USA ranked 2nd in?
Global imports and exports of services
Who is the world’s largest trading nation?
China
Where does most trade take place?
Between HDEs
Where is there increasing growth and trade
Between EMEs and LDEs
HDE export patterns
Export high value manufactured goods, technology, pharmaceuticals and financial services
HDE import patterns
Import raw materials, agricultural products and increasingly manufactured goods from emerging economies
Relationship of HDEs with emerging economies
- Depend on countries like China and India for cheaper manufacturing and electronics
- Invest heavily in emerging markets to access growing consumer bases
Relationship of HDEs with LDEs
- Provide foreign aid and development assistance
- Import natural resources and agricultural commodities
- Sometimes criticised for explotative trade practices in resource extraction
Emerging economies export patterns
Export manufactured goods, textile, IT services and electronics
Emerging economies import patterns
Import raw materials, energy and advanced tech
Relationship of emerging economies with HDEs
- Serve as manufacturing hubs due to cost advantages and skilled labour
- Compete for influence in global markets and innovation, especially in sectors like AI, renewable energy and pharmaceuticals
Relationships of emerging economies with smaller economies
- Engage in resource extraction and infrastructure investment
- Export affordable consumer goods and technology to these regions
- Support development through trade agreements and loans, often seen as part of ‘soft power’ strategies
LDE export patterns
Export raw materials and agricultural products
LDE import patterns
Import manufactured goods, technology
Relationship of LDEs with HDEs
- Heavily reliant on developed economies for financial aid, investments and trade agreements
- Vulnerable to fluctuating commodity prices and trade imbalances
Relationships of LDEs with emerging economies
- Increasingly align with China and India for trade, investment and development partnerships
- Benefit from affordable imports and infrastructure projects but risk over dependence.
Key patterns and challenges
- Global value chains
- Economic disparities
- Geopolitical shifts
- Sustainability concerns
Global value chains
Emerging economies often act as manufacturing intermediaries, while smaller economies supply raw materials and developed economies dominate high end markets
Economic disparities
Smaller economies face challenges like trade deficits, lack of diversification, and dependency on a few commodities
Geopolitical shifts
Emerging economies like China are reshaping global trade dynamics, sometimes challenging the dominance of developed economies
Sustainability concerns
Unequal trade relationships can make environmental and social issues, especially in less developed economies
What is trade balance?
The diff between the value of a country’s exports and the value of its imports over a specific time period.
