Consider the Extent to Which Economic Theories Effectively Explain the Changing Patterns of Trade in Recent Years. In recent years, there has many changes in international trade,

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Economic Theories

Consider the Extent to Which Economic Theories Effectively Explain the Changing Patterns of Trade in Recent Years.

In recent years, there has many changes in international trade, from the dotcom revolution leading to E-commerce, and finally the most recent change is international trade is globalisation, which has developed over many decades.

There have been new trade pattern such as third world countries participating in international  trade. Developing countries joining union’s i.e. countries join  European union to cut down trade barriers  

A trade pattern is what goods and services a country will trade, and with whom, and in what direction. The trade pattern is one of the major purposes of trade theory, especially which goods a country will export and which it will import. This may be done directly, as the commodity pattern of trade, in indirectly as the factor content pattern of trade.

Indeed there are many trade patterns intra and inter industry trade and just one of those picked of a bunch

Intra-industry trade refers to the exchange of products belonging to the same industry.

An example of international intra industry trade is when be America imports cars from Japan and exports cars to Japan.

Inter Industry trade refers to a country only exports  certain goods and not importing these goods.

This is when  Saudi Arabia Exporting Oil and importing Electrical goods.

Basically in inter industry trade, whatever a country exports it won’t import.

Secondly, I would like to explain what a trade pattern is. A trade pattern is what goods and services a country trades, with whom, and in what direction.

The trade pattern is one of the major purposes of trade theory, especially what goods a country will export, and what it will import. For example (Saudi Arabia Export Oil to the UK and they have imported fighter aircraft from the UK)

 

Date Viewed 17/01/2006

This may be done directly, as the commodity pattern of trade 

(The trade pattern of a country or the world, focusing on goods and services traded. This is mostly concerning secondary material such as Aircrafts as whole)

Alternatively, in indirectly as the factor content pattern of trade. 
(The trade pattern of a country or the world, focusing on factor content of the goods and services that are traded. This is mostly concerning raw materials used in the production of goods such as trees for timber)

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Determinants of international Trade.

The expansion of global trade is related to supply and demand, institutional and economic factors, and national, regional, and international characteristics. In particular, in      combination with changing consumer preferences as incomes rise, advanced technology, and trade agreements have played large roles in allowing access to markets, breaking through old constraints of climate, location, and growing season to encompass what is truly a global market. In turn, globalisation has fomented change in wholesale and retail markets around the world, providing consumers with an expanding collection of resources all year around.

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