what are patterns of trade
a country’s pattern of trade refers to the mix of goods and services that it imports and exports in international trade
what are the factors infleuncing pattern of trade?
- comparative advantage
- impact of emerging economies
- growth intrdae blocks and bilateral trading agreements
- changes in relative exchange rates
explain the impact of emerging economies on patterns of trade
india, china, russia,brazil
- increasing share of world exports as become more integrated into the global trading system and are increasingly important
- changing trade patterns: For example, China has become a major exporter of manufactured goods, particularly electronics and machinery, and has displaced other countries in these sectors.
- **growing importance as importers **
how does comparative advanatge infleunce pattern of trade?
countries are more likley to import from countries that hold the comparative advanage in producing that good, as they have specialised and are providing it at low cost
how does trade blocs infleunce patterns of trade?
countries are more likley to trade with countries from within the trade bloc as there is a lack of protectionsit measures which means that it may be more price competitive
how does changes in exchnage rates infleunce pattern of trade?
infleuncies pric eof imports and exports so it may be more cost effective to trade with those specfic countries
