Identify patterns of trade between developed and developing countries.
Students should be aware of changes in trade flows between countries and the reasons for them ,
for example the potential impact of China and India on world trade patterns and the possible reaction of developed economies.
Volume of world trade merchandise exports & GDP 1950 -2008 Annual % change Use your whiteboard - compare the changes of exports and GDP over from 1950 – 2008 (4 marks)
Volume of world trade merchandise exports & GDP 1950 -2008 Annual % change Use your whiteboard - compare the changes of exports and GDP over from 1950 – 2008 (4 marks) Difference between exports & GDP What type of relationship is there? Is this a volatile or stable market?
Volume of world trade (annual % change) Exports Imports Use your whiteboard - compare the changes for imports and exports from 2000 - 08 (4 marks)
Composition of geographical regions
This is where countries in various parts of the world come together to form trade groups with varying degrees of formality.
Their aim is to encourage trade among a group of nations.
ASEAN Trade Group
Commonwealth of Independent states
World Trade Organisation. Everyone in green = member of WTO
Customs Union V Free Trade?
Where a group of countries agree to trade without barriers between themselves , but maintain their own individual barriers with countries outside the area.
This goes further than free trade, which eliminates not only barriers to trade between the member countries BUT also to have a common tariff barrier against the rest of the world.
Eg The Single Market
Typical Evaluation Q’s
To what extent do trade groupings generate increased trade and improve efficiency?
Requires you to know about…. trade diversion versus trade creation within the context of trade groups!
When countries within a trade group import from within the partner group countries rather than import from ‘cheaper’ non partner countries.
This may encourage some of the countries’ industries to remain inefficient rather than compete on a global scale!
This is where the members of the trading group start to specialise in industries that they have a competitive advantage and benefit from economies of scale and improve efficiencies.
More on this in a later lesson.
Your task – Internet research
Using your handout (last 6 slides) of the different world trade groups
You will be given one trade group to investigate & then share your findings with everyone else….