Factors affecting global trade

Question 1

Factors affecting global trade:

Answer 1

Changes in the global market
Resource endowment
Historical factors
Locational Advantage
Trade agreements

Question 2

how do changes in the global market affect global trade?

Answer 2

Foreign Direct Investment, enables countries to increase their GDP increasing overall economic development

BRICS countries industrialise rapidly to become dominant in global trade

Question 3

how does resource endowment affect global trade?

Answer 3

natural resources give some countries an advantage in global trade e.g the middle east in oil and China in fish
it allows countries to specialise which can increase speed of economic development

Question 4

how do historical factors affect global trade?

Answer 4

trading links between former colonial powers and colonies often remain strong - France with the French West Africa, the UK with the commonwealth

Question 5

how does locational advantage affect global trade?

Answer 5

closeness to market - perishable goods
access to a port - the port of Rotterdam
strategic position along trade routes - Cape town SA

Question 6

how do trade agreements affect global trade?

Answer 6

in trade blocs tariffs have been removed to enable free trade between members also allowing further trade and expands economic opportunities e.g the EU or Mercosur