Trade

• Trade is the buying and selling of goods and services between countries.
• Services are a function or job that an ecosystem provides.
• Imports are the purchase of goods from another country.
• Exports are the selling of goods to another country.
• A trade deficit is when imports exceed exports.
• A trade surplus is when exports exceed imports.
• Reasons for trade:

  • USA - 'special' relationship and political reasons.
  • China - 'Workshop of the World' , high production rates so cheaper and low labour cost
  • Europe - location , nearby so transport costs are lower and there is a large market for goods
  • Commonwealth - historical ties from previous colonies