3.10. Trading Patterns and Relationships

Question 1

Who are the EU’s major trading partners?

Answer 1

China (goods)
USA (services)

Question 2

What is the USA ranked 2nd in?

Answer 2

Global imports and exports of services

Question 3

Who is the world’s largest trading nation?

Answer 3

China

Question 4

Where does most trade take place?

Answer 4

Between HDEs

Question 5

Where is there increasing growth and trade

Answer 5

Between EMEs and LDEs

Question 6

HDE export patterns

Answer 6

Export high value manufactured goods, technology, pharmaceuticals and financial services

Question 7

HDE import patterns

Answer 7

Import raw materials, agricultural products and increasingly manufactured goods from emerging economies

Question 8

Relationship of HDEs with emerging economies

Answer 8

• Depend on countries like China and India for cheaper manufacturing and electronics
• Invest heavily in emerging markets to access growing consumer bases

Question 9

Relationship of HDEs with LDEs

Answer 9

• Provide foreign aid and development assistance
• Import natural resources and agricultural commodities
• Sometimes criticised for explotative trade practices in resource extraction

Question 10

Emerging economies export patterns

Answer 10

Export manufactured goods, textile, IT services and electronics

Question 11

Emerging economies import patterns

Answer 11

Import raw materials, energy and advanced tech

Question 12

Relationship of emerging economies with HDEs

Answer 12

• 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

Question 13

Relationships of emerging economies with smaller economies

Answer 13

• 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

Question 14

LDE export patterns

Answer 14

Export raw materials and agricultural products

Question 15

LDE import patterns

Answer 15

Import manufactured goods, technology

Question 16

Relationship of LDEs with HDEs

Answer 16

• Heavily reliant on developed economies for financial aid, investments and trade agreements
• Vulnerable to fluctuating commodity prices and trade imbalances

Question 17

Relationships of LDEs with emerging economies

Answer 17

• Increasingly align with China and India for trade, investment and development partnerships
• Benefit from affordable imports and infrastructure projects but risk over dependence.

Question 18

Key patterns and challenges

Answer 18

• Global value chains
• Economic disparities
• Geopolitical shifts
• Sustainability concerns

Question 19

Global value chains

Answer 19

Emerging economies often act as manufacturing intermediaries, while smaller economies supply raw materials and developed economies dominate high end markets

Question 20

Economic disparities

Answer 20

Smaller economies face challenges like trade deficits, lack of diversification, and dependency on a few commodities

Question 21

Geopolitical shifts

Answer 21

Emerging economies like China are reshaping global trade dynamics, sometimes challenging the dominance of developed economies

Question 22

Sustainability concerns

Answer 22

Unequal trade relationships can make environmental and social issues, especially in less developed economies

Question 23

What is trade balance?

Answer 23

The diff between the value of a country’s exports and the value of its imports over a specific time period.