4.1.3 Pattern of trade

Question 1

Recent pattern of UK trade

Answer 1

Question 2

What countries do developed countries do most of their trade with?

Answer 2

Other developed countries

Question 3

What countries do developing countries do most of their trade with?

Answer 3

Developed countries

Question 4

How has the growth of trading blocs contributed to changes in world trading patterns?

Answer 4

For example, the EU originally had 6 member states in 1950s, and had grown to 28 members by 2013. As a result, there has been increased trade between members.

Question 5

Fact about pattern of trade

Answer 5

• Since 2000 over 50% of uk imports are from the EU, in 2023 it was 52%.

Question 6

Factors that influence the pattern of trade

Answer 6

• Comparative advantages: difference in costs of production between countries affect patterns of trade.
• Impact of emerging economies: E.g China going from barely trading with any countries 50 years ago to being one of the leading exporters today.
• Growth of trading blocs and bilateral trading agreements.
• Changes in relative exchange rate cheaper to import than produce internally. E.g Japanese Yen with Japanese imports.

Question 7

what is gravity theory

Answer 7

In economics, gravity theory relates to how international trade between countries is influenced by
Geographical proximity
Economic size (mass) of the respective countries (M)
Similarities in consumer preferences and economic development.
So countries trade with other countries that share similar characteristics