7.3.2! Flashcards
Why most of the trade takes place between HDE countries ? (4)
They specialised in producing high-tech products that require money and expertise
They are wealthier so people have more disposable income to spend on goods
They are more likely to have trade agreements facilitating trade
They have better infrastructure to make trade quicker and easier
Why EME countries are becoming more important to global trade? (3)
They have lower labour costs making it cheaper to manufacture products – this attracts FDI
They are experiencing rapid economic growth which is creating demand for more products as incomes rise
They often have large and growing populations which are creating new consumer markets
Why LDE countries are least likely to participate in global trade? (3)
They are less likely to be well-connected with infrastructure to manufacture and transport goods
They have lower GDP meaning they lack the capital to invest in infrastructure and their consumer markets are smaller due to lower disposable income
They are more likely to be suffering political instability which could deter FDI
What are the patterns of trade in commodities in the world?
LDE countries rely mostly on the export of primary commodities whereas HDE and EME countries rely more on the export of secondary commodities
Why is it difficult for LDEs to achieve economic growth ?
It is important to recognise that the trading relationship between LDE, EME and HDE countries makes it difficult for LDE countries to achieve significant economic growth due to lack of access to markets and restrictions that prevent them from producing more high-value secondary commodities
