Trends in the volume and pattern of international trade 3.2.1.3 Flashcards
What has happen to the volume of global trade?
It has increased
How did the value of global trade change between 1980 and 2008
Increased by 8x
What happened in 2008-009 that affected international trade flows?
Global economic crisis
Trade has continued to increase, but why has the share of trade in manufactured goods declined recently?
Energy prices affecting demand
What has contributed to a slower rate of growth in trade?
Covid, war in Ukraine, inflation (rate of increase in prices over time), widespread debt
Which countries are the biggest global traders?
HICs
Name the G7 countries. What percentage of world trade do they have?
USA, German, Japan, UK, Canada, Italy, France. Nearly 50%
Why does more than half of trade in developed countries take place with other developed countries?
This is because of the large numbers of affluent consumers and markets found in the world’s wealthiest countries.
- What has happened to manufacturing in countries like the UK?
Many advanced economies have experienced deindustrialisation with less national output from their manufacturing sectors.
- How are NEEs changing the pattern of world trade?
Becoming increasingly dominant in world trade.
Give at least 2 pieces of evidence for how dominant China is in world trade
A slowdown in the rate of Chinese growth since 2010 has been responsible for a “cooling off” of the global economy as a whole.
Falling Chinese demand for imports of natural resources and oil has been financially harmful for many African exporters selling raw materials to China.
China overtook Japan as the leading Asian exporter in 2004, 3 years after it joined the WTO (World Trade Organisation).
China overtook the USA in 2007 and Germany in 2009 to become the worlds’ leading exporter. Trans-Pacific trade is now growing faster than Trans-Atlantic trade. China remains the top manufacture exporter in 2022
- Where has trade taken place in the last 10 years that has been very important in growth of world trade?
South-south trade (trade between less developed countries).
How is trade in less developed countries changing?
They are becoming bigger traders, but growth is slow.
Name the BRIC countries. What is helping them to become important in world trade?
Brazil, Russia, India, China
All have an extensive land area, are mineral-rich and have a large potential home-market in terms of population numbers
. Name the MINT countries.
Mexico, Indonesia, Nigeria, Turkey
- What role do the least developed countries play in world trade?
They account for a small percentage of world trade, although they have 10% of the population. There is growth in exports from LDCs.
What has happened in former communist countries?
They have opened up and increased their share of world trade by taking advantage of their low production costs and low wages.
How is location important in global trade?
Countries with economics of all sizes trade with those who are geographically close. There is distance decay (less trade with countries further away).
Why might location be important in trading relationships?
It may be because of political influence / cultural affinity / transport costs.
