4.1.3

Question 1

4 Factors that effect patterns of trade.

Answer 1

Comparative advantage
Emerging economies
Trading Blocs
Exchange Rates

Question 2

How does Comparative Advantage effect it?

Answer 2

Countries that produce at lower opportunity cost will have lower cost of production therefore sell more. Other countries will begin to produce less

Question 3

Emerging Economies how do they effect patterns of trade?

Answer 3

Cheaper labour

Question 4

Trading Blocs effects?

Answer 4

Trade Creation- Creates more trade and cheaper

Trade Diversion- Imports from outside trading bloc begin to have expensive tariffs therefore trade is driven away

Question 5

How do exchange rates effect?

Answer 5

If currency appreciates then countries will being to import more products due to external exports being cheap.