Flashcards in Pattern Of Trade Deck (7)
What is PATTERN OF TRADE?
Refers to how a country trades with other countries and in which direction.
Factors influencing patterns of trade (4)
1. Comparative advantage
2. Relative exchange rate
3. Changing global demand
4. Trading blocs
What is COMPARATIVE ADVANTAGE
Countries exporting good which they have a comparative advantage in
Relative exchange rate?
A depreciation in the exchange rate will make exports cheaper and possibly boost them
Changing global demand?
Economic growth in China has led to a commodities boom in Africa
The European Union has increased trading amongst members countries.