Patterns of trade.
- Patterns of trade is when the trade flow of the globe
changes, i.e the amount of exports and imports.
- For example, in 1967, the UK was the 5th largest
steel producer in the world, whereas China was the
8th largest. In 2018, the UK then became the 21st
largest, with China landing first place.
- There are 4 factors that cause the patterns of trade:
Comparative advantage:
- When a country can produce a good/service at a lower
opportunity cost in comparison to another country,
they can export more in comparison too.
- For example, in 1970, China made roughly $2.3B export
revenue from the comparative advantage, and therefore
specialisation, they have in technology, steel
production etc (due to low wages that workers have
accepted, which thereby increased their productivity)
- In 2014 however, China made about $2.4 TRILLION.
- Trade flows have therefore increased significantly
because of China.
Emerging economies:
- Economies rising out of poverty.
- They have some characteristics of a developed country
such as high RGDP, but not all standards, such as
poor education systems.
- These are the BRICS economies: Brazil, Russia, India,
China, South Africa.
- Example, India used to not import many goods due to a
small population of 550 million, but now that they
have a population of around 1.3B, their RGDP has also
- Patterns of trade is when the trade flow of the globe
changes, i.e the amount of exports and imports.
- For example, in 1967, the UK was the 5th largest
steel producer in the world, whereas China was the
8th largest. In 2018, the UK then became the 21st
largest, with China landing first place.
- There are 4 factors that cause the patterns of trade:
Comparative advantage:
- When a country can produce a good/service at a lower
opportunity cost in comparison to another country,
they can export more in comparison too.
- For example, in 1970, China made roughly $2.3B export
revenue from the comparative advantage, and therefore
specialisation, they have in technology, steel
production etc (due to low wages that workers have
accepted, which thereby increased their productivity)
- In 2014 however, China made about $2.4 TRILLION.
- Trade flows have therefore increased significantly
because of China.
Emerging economies:
- Economies rising out of poverty.
- They have some characteristics of a developed country
such as high RGDP, but not all standards, such as
poor education systems.
- These are the BRICS economies: Brazil, Russia, India,
China, South Africa.
- Example, India used to not import many goods due to a
small population of 550 million, but now that they
have a population of around 1.3B, their RGDP has also
