International Trade (AQA A Level Geography)

International trade is the exchange of money, goods and services between countries

The volume of international trade has increased considerably over time, with the period between 1980 and 2010 experiencing the fastest rate of growth

• In 2000 the value of global trade was approximately $6.45 trillion. By 2020 this figure was at $19 trillion

The volume of international investment has also increased dramatically, with flows of FDI growing 10-fold between 1990 and 2015

The pattern of international trade and investment is changing, with LDE and EME countries playing a more significant role

In the past, western countries such as USA, Germany and UK dominated global trade and investment

China is now the largest exporter of goods in the world, and while USA remains the world’s largest importer of goods, China is in second place

HDE countries remain the most important source of FDI, however flows from LDE and EME countries have grown significantly e.g.China's Belt and Road Initiative

Although USA is the largest recipient of FDI, EME countries now receive more than 50% of global FDI flows, with China the third largest recipient