4.1.3 Pattern of trade

• What is patterns of trade?

   Refer to the specific goods and services of a country exports and imports as well as the countries it trades with
• What are characteristics of patterns of trade?

  • Refers to the range of which countries that are most important for a nation in their trade relationships
  • Reflects the specialisation and comparative advantage that a country has in producing certain products
  • Some countries have a highly diversified export base with the capability and capacity to export a very wide range of products
• What are characteristics of geographical patterns of trade?

  • Concerns the businesses and consumers in other countries with whom businesses and people trade
  • Intra-regional trade is trade between countries in the same region
• What are characteristics of commodity patterns of trade?

  • This is the type of products traded internationally
  • Can see the extent that a county has a dependence on primary vs manufactured vs service exports
  • Many less economically developed countries rely heavily on primary product exports
  • As a nation develops complexity and capabilities, they become capable of supplying and exporting a broader range of products
• What factors influence the patterns of trade?

  • Changes in comparative advantage
  • The growth in exports of manufactured goods especially from low wage countries to develop economies
  • The growth of global supply chains
  • The increased importance of emerging economies as trading partners
  • The growth of trading blocs and bilateral trading agreements
  • Changes in relative exchange rates