Pattern of Trade 4.1

Question 1

Factors influencing the pattern of trade between

countries

Answer 1

Changes in comparative advantage - Many western MEDCs have shifted comparative advantage from textiles, shipmaking, to high knowledge tech and services

Impact of emerging economies

Trading blocs - More trade amongst members

Changes in relative exchange rates - e.g. after the oil boom of the UK in 1970s, Sterling value drove up –> Manufacturing became uncompetitive –> long term de-industrialisation of the UK –> focused on services

Question 2

Patterns of Trade Def.

Answer 2

Composition of a country’s Imports & Exports, and who it trades with