Saturday, 5 March 2011

Patterns of International Trade

Patterns of International Trade
Aims: To be able to identify patterns of trade between developed and developing countries. To understand changes in trade flows.

Please find transcript below.

UK Exports and Imports 


  • Cars
  • Pharmaceuticals 
  • Petroleum oils
  • Aircraft and associated equipment
  • Telecommunication equipment
  • Tourism
  • Financial services
  • Legal services
  • Music/ Entertainment (think King’s Speech)
  • Steal
  • Natural gas
  • Clothing/Textiles
  • Different types of stones/minerals
  • Furniture
  • Paper
  • Toys/games
  • Alcohol beverages
  • Sliver 
  • Sporting goods
  • Baby carriages 
UK’s top trading Partners - ranked in order (2009)

Export Partners
Import Partners
From the data above we can see that bar USA (benefit from exchange rate) and China (cheap goods available) we mainly trade with our EU trading partners being Germany, France and Netherlands. 
  • Annual value of international trade of goods (80%) and services (20%) now exceeds $12 trillion. This reliance on other nations has forced us to maintain healthy political relations with other countries as well as benefit from a larger consumer welfare. After WW2 the free-trade idea was introduced as a means of maintaining world peace. 
Three quick-fire facts
  1. 16% of the EU’s imports come from China.
  2. Almost 60% of UK’s trade is with the 27 EU countries. This is an example of trade creation.
  3. Trade between the UK and former colonies and commonwealth countries has decreased. This is called trade diversion.

These three quick-fire facts demonstrates changes in world trade patterns. There has been an increase in trade between trade blocs e.g. NAFTA and another factor that has lead to trade between nations which are geographically distanced is cheap transport costs. Traditional trade between colonies has decreased as we now trade between nations in a competitive way as opposed to competition between colonies. China has revolutionized trade by allowing trade with developed countries with ease at a low cost!

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