International Trade

• International trade is occurring more than ever before . Globally, the amount of exports has been steadily increasing.
• Most trade takes place between HDE countries for various reasons:

  • They specialised in producing high-tech products that require money and expertise
  • They are wealthier so people have more disposable income to spend on goods
  • They are more likely to have trade agreements facilitating trade
  • They have better infrastructure to make trade quicker and easier
• EME countries are becoming more important to global trade because:

  • They have lower labour costs making it cheaper to manufacture products – this attracts FDI
  • They are experiencing rapid economic growth which is creating demand for more products as incomes rise
  • They often have large and growing populations which are creating new consumer markets