LS5- Pattern of Trade

Question 1

Comparative advantage + impact on trade

Answer 1

• suggests countries should specialise in the production of g/s in which they have a lower opportunity cost i.e. produce wat they are relatively more efficient at producing
• countries tend to export the g/s they have a comp adv in and import g/s for which they don’t

Question 2

Impact of emerging economies

Answer 2

• the rise of emerging economies has meant they often become a major exporter of manufactured g/s, altering the dynamics of global trade

Question 3

Growth of trading blocs and bilateral trading agreements

Answer 3

• within trading blocs, countries often face reduced tariffs and trade barriers, leading to increased trade among them

Question 4

Changes in relative exchange rates

Answer 4

• can have a direct impact on trade - depreciation of a country’s currency can make its exports cheaper and more competitive in the international market, leading to increased exports
• conversely, a stronger currency can reduce exports and increase imports