Question

explain the major stage of global trade patterns in global economy​

Answer 1

Answer:

The pattern of trade

The global economy has grown continuously since the Second World War. Global growth has been accompanied by a change in the pattern of trade, which reflects ongoing changes in structure of the global economy. These changes include the rise of regional trading blocs, deindustrialization in many advanced economies, the increased participation of former communist countries, and the emergence of China and India.

Explanation:

Changes in the global economy

The main changes in the global economy are:

The emergence of regional trading blocs, where members freely trade with each other, but erect barriers to trade with non-members, has had a significant impact on the pattern of global trade. While the formation of blocs, such as the European Union and NAFTA, has led to trade creation between members, countries outside the bloc have suffered from trade diversion.

Like several advanced economies, the UK’s trade in manufactured goods has fallen relative to its trade in commercial and financial services. Many advanced economies have experienced deindustrialization, with less national output generated by their manufacturing sectors.

The collapse of communism led to the opening-up of many former-communist countries. These countries have increased their share of world trade by taking advantage of their low production costs, especially their low wage levels.

Newly industrialized countries like India and China have dramatically increased their share of world trade and their share of manufacturing exports. China, in particular, has emerged as an economic super-power. China’s share of world trade has increased in all areas, and not just in clothing and low-tech goods. For example, in 1995, the US had captured nearly 25% of global trade in hi-tech goods, while China had only 3%. By 2005, the US share had fallen to 15%, while China’s share had risen to 15%.

Answer 2

With the growth in economy, the patters of global trade have also change.

• The exchange of commodities and services between countries is known as trade. The developed world has a larger proportion of global trade than the developing world.
• Developed nations export high value manufactured items like electronics and automobiles while importing lower-cost basic items like tea and coffee. World exports are dominated by trading blocs like the European Union.
• There have been various stages and transitions in global trade which are -

1. Stage 1 -Consumption moves to production as colonisation begins
2. Stage 2 - Agriculture rises, localising the world economy which leads to regular trade.
3. Stage 3 - Globalisation fosters, which separates production and consumption geographically. thereby giving a boom to the trade.
4. Stage 4 - Business is diversified, and commerce and international information exchanges are rapidly increasing.