New section- lesson 9- Global trade and market access

Question 1

why do nations trade more than they did 30 years ago?

Answer 1

-it has become economically worthwhile-cheaper to produce in a LIC and import to a HIC - result of move towards ‘free trade’ (less barriers and tarrifs), which is enforced by the WTO

-reduced transport costs-containerisation

Question 2

what is a comparative advantage, and how does it lead to unequal growth?

Answer 2

-an economy’s ability to produce a particular good or service at a lower opportunity cost than its trading partners.

• developed countries/ HICs are exporting ‘high value’ services and products, as they can afford the resources for them, and they are importing ‘low value products’ from LICS/LDEs. This leads to net profit, so more growth

-Less developed economies/LDEs are exporting ‘low value goods and services, so they are not making as much profit, so they do not grow as quick, and can’t afford up to date technology to make ‘high value’ goods

Question 3

what are the main 3 mega hubs?

Answer 3

London
New York
Tokyo

Question 4

what are the top 3 exporters (2023)

Answer 4

China
USA
Germany

Question 5

what are the top 3 importers (2023)

Answer 5

USA
China
Germany