Macro A2 - Pattern Of Trade

Question 1

What is meant by pattern of trade

Answer 1

The pattern of trade refers to the way in which countries exchange goods and services with one another. It encompasses the volume, composition, direction, and frequency of international trade.

Question 2

bilateral trading agreements changes in relative exchange rates

Answer 2

Bilateral trade agreements are agreements between two countries to reduce or eliminate trade barriers, such as tariffs and quotas, and promote trade between them. These agreements can change the pattern of trade by increasing the volume and composition of trade between the countries involved.

Question 3

growth of trading blocs

Answer 3

Reduction of trade barriers: Trade blocs typically involve the elimination of trade barriers, such as tariffs and quotas, between member countries.

Increased specialization: Trade blocs can lead to increased specialization among member countries.

Improved access to markets: Trade blocs can provide member countries with improved access to markets

Question 4

impact of emerging economies

Answer 4

Emerging economies are growing rapidly and contributing significantly to global economic growth.

Global trade: The rise of emerging economies has led to increased trade between developing countries, which has had a positive impact on their economies

Investment: Emerging economies are attracting increasing amounts of foreign investment, which is helping to spur economic growth and development.

Question 5

competitive advantage

Answer 5

Factors that allow a company to produce goods or services better or more cheaply than its rivals

Question 6

Factors influencing changes in trade flows between countries

Answer 6

Factor endowments and productivity, trade policy, exchange rates, foreign currency reserves, inflation, and demand.

Question 7

Factors influencing the pattern of trade between countries

Answer 7

productivity, trade policy, exchange rates, foreign currency reserves, inflation, and demand.