Pattern Of Trade

Question 1

What is PATTERN OF TRADE?

Answer 1

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

Question 2

Factors influencing patterns of trade (4)

Answer 2

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

Question 3

What is COMPARATIVE ADVANTAGE

Answer 3

Countries exporting good which they have a comparative advantage in

Question 4

Relative exchange rate?

Answer 4

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

Question 5

Changing global demand?

Answer 5

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

Question 6

Trading blocs

Answer 6

The European Union has increased trading amongst members countries.

Question 7

Recent changes in trade (3)

Answer 7

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