4.1.3 Pattern Of Trade *

Question 1

What is the definition of Pattern Of Trade `

Answer 1

What goods and services a country trades with. with whom and in what direction

Question 2

How do comparative advantages affect patterns of trade

Answer 2

• Countries will likely export goods in which they have a comparative advantage and import goods in which they do not have a comparative advantage.

Question 3

What does the UK have a comparative advantage in ?

Answer 3

• Financial services and insurance (eg service based)

Question 4

How does emerging economies impact patterns of trade

Answer 4

• Emerging economies will increase market for exports

Question 5

How does growth of trading blocs and bilateral trading
agreements impact patterns of trade

Answer 5

• Countries which are in trading blocs will trade more with each other than those who are not in the bloc.
• Reduces protectionist barriers within the bloc

Question 6

How does changes in relative exchange rates impact patterns of trade

Answer 6

• Strong currency will lead to low exports and high imports
• Weak currency will lead to high exports and low imports