Lesson 32-Patterns of trade

Question 1

What is intra-regional trade?

Answer 1

Trading with countries in the same region

Question 2

Who do countries tend to trade with most?

Answer 2

Those in a close proximity to them

Question 3

Give the definition of comparative advantage

Answer 3

Producing goods that you have the lowest opportunity costs due to advantages such as lower wages and more natural resources

Question 4

Give the definition of economies of scale

Answer 4

If a country specialises in manufacturing a product, unit costs will fall as larger factories benefit from the advantages of mass production

Question 5

Give the definition for product differentiation

Answer 5

Consumers prefer a wide range of choice of different products from different countries. This is due to the demand for higher quality, unique products

Question 6

What changes have newly industrialised countries experienced regarding trade?

Answer 6

Massively increased their share of trade and their share of manufacturing exports

Question 7

What have many advanced economies experienced?

Answer 7

Deindustrilisation, with less national output generated by their manufacturing sectors

Question 8

What has there been an emergence of?

Answer 8

Regional trade blocs were members can freely trade with each other, but erect barriers to trade with non-members