Patterns Of Trade Flashcards
What affects patterns of trade?
Comparative advantage
Impact on emerging economies
Growth of trading blocs
Changes in relative exchange rates
How does comparative advantages affect patterns of trade?
Businesses want to profit maximise so when it is suitable to produce more they will
How does impacts on emerging economies affect patterns of trade?
Emerging world ecomomies have a higher share of the international business meaning other counteries lose out.
How does growth of trading blocs affect patterns of trade?
the World Trade Organisation (WTO) had helped to facilitate more than 420 regional trading blocs & bilateral agreements (between 2 countries).
How does changes in relative exchange rate affect patterns of trade?
If a country’s exchange rate appreciates, then its exports are relatively more expensive & its imports become cheaper.
