1.3 Pattern of Trade

Question 1

What does patterns of trade mean?

Answer 1

Tracks who is traded with and what is traded

Question 2

Factors influencing PoT?

Answer 2

1) Trading Blocs (EV: political fragility)
2) Emerging Economies (EV: depends on what traded)
3) Comparative Advantage

Question 3

Types of PoT?

Answer 3

1) Geographical - refers to countries who are traded with
2) Commodity - refers to type of products traded

Question 4

What is the Gravity Theory of Trade?

Answer 4

Trade within a region is far larger than between regions and continents

Question 5

Factors affecting comparative advantage?

Answer 5

1) Trade barriers
2) Transport costs
3) Infrastructure