Flashcards
Trade and Intergration
Cards in this deck (12)
- 1What has happened to the pattern of Global Trade recently?Developed countries do not dominate world trade to the extent that the used to
- 2Who was benefited from world trade in the past years? Why? (2)Developing countries
1) trade liberalisation
2) exploitation of comparative advantage - 3How is the pattern of global trade distributed- who dominates? What does this suggest?Unevenly distributed -developed countries still dominating
Suggests that comparative advantage is a weak explanation - 4Why do developed countries still dominate world trade?They have a CA in capital intensive products which tend to command higher prices than labour intensive products
- 5Where does most trade take place? (2)1) Between similar countries - economically and geographically
2) between similar goods - 6What is trade between similar countries known as?Intra-regional trade
- 7What is trade between similar goods known as?Intra-industry trade
- 8Why trade internationally? (4)1) Differences in factor endowments (factors of production)
2) Price
3) Product differentiation
4) Political reasons - 9Why would differences in factor endowments be an incentive to trade internationally?No country has everything it wants
- 10Why would price be an incentive to trade internationally?some countries are better (cheaper) at producing goods than others
- 11Why would product differentiation be an incentive to trade internationally?some countries are better (quality) at producing goods than others
- 12Why would political reasons be an incentive to trade internationally?trade deals can artificially influence the level of trade
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- A-Level Macro yr13 (4.2.6.2 Trade) Flashcards on Trade and Intergration, created by Maya Khangura on 21/02/2017.
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- Maya Khangura
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