Trade Patterns (Edexcel IGCSE Economics)
Revision Note
Written by: Steve Vorster
Reviewed by: Jenna Quinn
Global Trade Patterns
Patterns of trade have changed over time
As countries transition from developing to more developed economies, the volume and composition of trade changes
Source: Statista
Graph analysis
There has been a significant overall increase in global trade in goods from 1950 to 2022
Factors that influence this increased export of goods and services include improved transportation, technological advancements, the formation of trading blocs, and trade liberalisation
Trade Patterns of Developed and Developing Countries
Historically, developed countries such as UK and USA have dominated global trade
However, emerging economies like China, Brazil, India, and Thailand are now overtaking nations that previously held dominance in trade volume
China are now the world's largest manufacturing economy and leading exporter
Source: Statista
Graph analysis
China's export growth has been consistent between 2013-2023, with the exception of a small decrease in 2016
In 2023, China exported goods worth 3.38 trillion U.S. dollars, a slight decline on the previous year
Most of their exports are manufactured goods (e.g. electronics) that traded with United States, ASEAN, and the EU
However, many developing countries are often still overly dependent on exporting a narrow range of primary commodities
Source: Observatory of Economic Complexity
Data analysis
The export of raw copper accounts for 44.5% of Zambia's exports
The export of refined copper accounted for 18.6% of Zambia's exports
This means that copper exports from Zambia accounted for 63.1% of their total exports
Primary products account for more than 90% of their exports
They are suffering from over specialisation, making them vulnerable to price volatility
Examiner Tips and Tricks
Generally, developed countries will trade mainly with other developed countries, swapping goods and services. Developed countries require raw materials from developing countries. However, since the supply chain disruptions experienced in the global pandemic of 2020–2022, many countries have attempted to spread their dependence on imports over a wider range of countries to reduce risk. Furthermore, with increased awareness of environmental issues and damage caused by the transportation of global goods, there has been an increase in trade with nearby countries.
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