comparative advantage

• What is comparative advantage in trade?

  Countries trade where there is a comparative advantage
• How does a change in comparative advantage affect trade patterns?

  It alters the patterns of trade between countries
• What has been the recent trend in exports from developing countries?

  Growth in exports of manufactured goods
• Why have developing countries gained an advantage in manufacturing?

  Due to lower labour costs
• What has caused the manufacturing sector to decline in countries like the UK?

  Deindustrialisation has led to this decline
• What has happened to the production of manufactured goods in the UK?

  It has shifted to other countries like China
• What sector is the UK focusing on after deindustrialisation?

  More on services, such as finance
• What has been the impact of the shift in manufacturing to China and India?

  Industrialisation of China and India has occurred
• How has the share of world trade changed for China and India?

  Their share has risen significantly
• What has happened to the volume of manufactured goods exported by China and India?

  It has increased over time
• What demographic change in China is affecting its wage competitiveness?

  China's population is ageing
• What economic change in China is impacting wage levels?

  The rise of the middle class demands higher wages
• What is one consequence of the rise of the middle class in China?

  They consume more goods and services