Patterns of Trade

Question 1

What influences pattern of trade?

Answer 1

1. Exchange rate (lower valuation will affect opportunity cost)
2. Emerging developing economies (disrupt trading patterns with the world)
3. Comparative advantage (country more likely to specialise in their comparative advantage as they are better at producing them
4. Growth in trading blocs and bilateral trading agreements (encouraging free trade or more tariffs)

CEET
Comparative
Exchange rates
Emergence of developing economies
Trade bloc