4.1.3: Pattern Of Trade Flashcards
What are patterns of trade?
The changing trends in global trade.
What are the types of patterns of trade?
-Geographical patterns of trade.
-Commodity patterns of trade.
What are geographical patterns of trade?
The countries with whom a nation trades.
What does geographical patterns of trade focus on?
Intra-regional trade.
What is intra-regional trade?
Trade that occurs inside a specific region (e.g. within EU members).
What is inter-industry trade?
The trade of similar goods that are part of the same industry between two countries.
UK’s geographical patterns of trade:
-EU is the UK’s largest (bloc) trading partner (42% exports, 50% imports).
-USA is the UK’s largest (country) trading partner (21% exports).
-China trade expanded from 2% imports in 1999 to 7%.
What are commodity patterns of trade?
The types of products that are traded internationally.
Typically, countries at an earlier stage of economic development tend to export a ________ range of products.
Narrower.
UK’s pattern of trade since 2000:
-Since 2000, exports have fallen and imports have risen.
-This is due to competition from emerging and newly industrialised economies such as China, India and Brazil.
-UK imports have tended to rise for similar reasons: goods are cheaper to buy from less developed countries.
What factors influence patterns of trade?
-Changes in comparative advantage.
-Emerging economies.
-Trading blocs and bilateral trading agreements.
-Changes in relative exchange rates.
Example of changes in comparative advantage influencing patterns of trade:
The UK focuses on services, while China focuses on manufactured goods.
Example of emerging economies influencing patterns of trade:
China is now a major manufacturer.
Example of trading blocs and bilateral trading agreements influencing patterns of trade:
EU Common Agricultural Policy subsidises domestic farmers to encourage production.
Example of changes in relative exchange rates influencing patterns of trade:
Depreciation helps exports.
