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Flashcards in Pattern Of Trade Deck (7)
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1

What is PATTERN OF TRADE?

Refers to how a country trades with other countries and in which direction.

2

Factors influencing patterns of trade (4)

1. Comparative advantage
2. Relative exchange rate
3. Changing global demand
4. Trading blocs

3

What is COMPARATIVE ADVANTAGE

Countries exporting good which they have a comparative advantage in

4

Relative exchange rate?

A depreciation in the exchange rate will make exports cheaper and possibly boost them

5

Changing global demand?

Economic growth in China has led to a commodities boom in Africa

6

Trading blocs

The European Union has increased trading amongst members countries.

7

Recent changes in trade (3)

1. The global economy has become more diverse
2. BRIC (Brazil, Russia, India and China) have experienced rapid economic growth
3. Share of world trade from developed countries has decreased.
--- China= 4201billion$
--- US = 3944 billion$
Trade is 33% of Japan GDP-- 74$ of Germany's