4.1.3 Patterns In Trade

Question 1

What is patterns of trade ?

Answer 1

• it refers to the mix of goods and services that it imports and exports in international trade

Question 2

What are the factors which influence patterns of trade?

Answer 2

• comparative advantage
• impact of emerging economies
• growth of trading blocs and bilateral agreements
• changes in relative exchange rates = eg: if a countries exchange rate appreciates then X are more expensive

Question 3

What are drivers of change in trade patterns?

Answer 3

• if a countries moves through stages of their economic development
• emergence of more diverse patterns of trade requires investment in both human and physical capital
• FDI