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Economics 4.1.3 - Coggle Diagram
Economics 4.1.3
Developed countries
highly diversified
intra-industry trade
differentiated products
export to other developed economies
regional and global distribution
lots of trading partners
LEDCs
low diversity
raw materials
export low value goods
import everything they need
inter-industry trade
regional trade
patterns of trade
volume of trade
composition/ structure of trade
the geographical distribution of trade
number of trading partners
importance of a given trading partner in country's overall trade
Newly industrialised countries e.g. Brazil
fast growing for a sustained period of trade
wide variety of goods
secondary/tertiary sectors
intra and inter industry trade
regionally focused
reasons or changes in trade patterns
technology to preserve comparative advantage
robots can remove costs of labour and increase productivity and maintain price competitiveness
growth of emerging economies e.g. China
China is dependent on export led growth
trade is high due to cheap labour
Trade liberalisation
deep trade agreements
competitive devaluation of domestic currency
makes exports more competitive in $
encourages increase in exports
improvement in trade balance
Gravity theory of trade
most trade happens between neighbouring countries
shared borders help facilitate high levels of trade and labour mobility
shared language and a single currency cut cost of trade contracts and market transactions
intra industry trade
trade in goods and services belonging to same sector
inter industry trade
trade in goods and services belonging to different sectors