1. Pattern of Trade
OCR Year 2 Macro

2. Pattern of Trade
OCR Year 2 Macro

3. What is the Pattern of Trade?
When we consider the pattern of trade we can focus on
Geographical pattern of trade
i.e. the countries with whom a nation trades
Includes focusing on intra-regional trade i.e. depth and scale of trade between countries in the same region (EU, Africa, Asia)
Scale of trade with regional trading blocs
Commodity pattern of trade
i.e. the types of products that are traded internationally
Relative dependence on primary v manufactured v service sector exports
Typically countries at an earlier stage of their economic development tend to export a narrower range of products – for example we often see primary product dependency

4. Pattern of Trade for Malawi – Exports of Goods
Over 90% of Malawi’s exports of goods are agriculture or mining/extractive products. Only 8% of their exports are manufactured goods

5. Pattern of Trade for Malawi – Imports of Goods
Malawi is dependent on final manufactured products and components for imports. The biggest single import is fertilizer. South Africa is the key source of imports.

6. Pattern of Trade for Malawi
Breakdown in total exports (%) Breakdown in total imports (%)
By main commodity group By main commodity group
Agricultural products Agricultural products 12.9
Fuels and mining products Fuels and mining products 15.5
Manufactures Manufactures 71.4
Geographical pattern of trade for Malawi
By main destination (%) By main origin (%)
1. European Union South Africa 21.7
2. Canada European Union 14.1
3. South Africa Mozambique 12.1
4. United States China 9.3
5. China India 7.8

7. Pattern of Trade for the UK: Exports of Goods
The chart shows the main exports of goods from the UK (it does not show exports of services). Nearly 10% of our goods exports are cars and we also have a strong export performance in pharmaceuticals, aerospace and crude/refined petroleum – although North Sea oil and gas production is well past the peak and the UK is now a net oil/gas importer.

8. Pattern of Trade for the UK: Imports of Goods
The UK has a high level of intra-industry trade, i.e. it tends to import similar products from those that it exports – for example vehicles, pharmaceutical products and manufactured products. We run a large (structural) trade deficit in goods, in other words, the UK is a net importer of manufactured goods, food and drink – although we export these as well. Overall the UK is a highly sophisticated economy with a strongly diversified pattern of trade.

9. Main Export Partners for the UK Economy (2014)

10. The UK’s Main Import Partners in 2014
In 2014, the United Kingdom's main import partner was Germany, accounting for 14.9 per cent of all imported goods and services.

11. Key Export Markets for UK Goods and Services
EXPORT SOURCES
Country
Value
% of Total
Cumulative
£ million
UK Exports
Percentage (%) 1
United States
37 364
12.7 2
Germany
30 730
10.5
23.2 3
Netherlands
22 367
7.6
30.8 4
France
19 089
6.5
37.3 5
Irish Republic
18 145
6.2
43.5 6
China
15 511
5.3
48.8 7
Belgium & Luxembourg
12 317
4.2
53.0 8
Switzerland
10 318
3.5
56.5 9
Spain
9 299
3.2
59.7 10
Italy
8 808
3.0
62.7 11
India
6 353
2.2
64.9 12
Hong Kong
6 352
67.1 13
United Arab Emirates
6 055
2.1
69.2 14
South Korea
5 611
1.9
71.1 15
Sweden
5 355
1.8
72.9 16
Japan
4 270
1.5
74.4 17
Russia
4 137
1.4
75.8 18
Poland
3 898
1.3
77.1 19
Saudi Arabia
3 848
78.4 20
Norway
3 740
79.7 21
Australia
3 677
81.0 22
Turkey
3 599
1.2
82.2 23
Singapore
3 421
83.4 24
Canada
3 234
1.1
84.5 25
Denmark
2 963
1.0
85.5

12. Key Import Sources for the UK Economy
IMPORT SOURCES
Country
Value
% of Total
Cumulative
£ million
UK Imports
Percentage (%) 1
Germany
60 820
14.6 2
China
36 900
8.9
23.5 3
Netherlands
33 160
8.0
31.5 4
United States
28 283
6.8
38.3 5
France
25 274
6.1
44.4 6
Belgium & Luxembourg
21 443
5.1
49.5 7
Norway
18 489
4.4
53.9 8
Italy
16 581
4.0
57.9 9
Spain
13 813
3.3
61.2 10
Irish Republic
11 911
2.9
64.1 11
Sweden
8 171
2.0
66.1 12
Switzerland
7 841
1.9
68.0 13
Poland
7 814
69.9 14
India
7 609
1.8
71.7 15
Hong Kong
7 461
73.5 16
Japan
7 277
1.7
75.2 17
Canada
7 236
76.9 18
Turkey
6 442
1.5
78.4 19
Russia
6 290
79.9 20
Czech Republic
4 759
1.1
81.0 21
Denmark
4 643
82.1 22
Taiwan
3 529
0.8
82.9 23
South Korea
3 207
83.7 24
Algeria
3 118
0.7
84.4 25
Singapore
3 099
85.1

13. Main Export Partners for China (2015)

14. Pattern of Trade for China – Exports of Goods
In 2014 China exported $2.37 trillion, making it the largest exporter in the world
Machinery accounts for the dominant part of Chinese exports of goods – the share of textiles in total goods exports is now declining as comparative advantage shifts to other countries.

15. Pattern of Trade for Bangladesh – Exports of Goods
In 2014 Bangladesh exported $33.4B, making it the 61st largest exporter in the world
Here is a great example of a country whose exports of goods are heavily dominated by low value-added manufacturing.

16. Biggest Exporters of Clothing in the World in 2015
World Trade Report 2016 (Source: WTO)
Value $bn
Share in world exports
In 2015
1980
1990
2000
2015
China
175
4.0
8.9
18.2
39.3
EU28
112
28.7
25.2
Bangladesh 26
0.0
0.6
2.6
5.9
Vietnam 22
0.9
4.8
India 18
1.7
2.3
3.0
4.1
Turkey 15
0.3
3.1
3.3
3.4
Indonesia 7
0.2
1.5
2.4
Cambodia 6
0.5
1.4
United States
4.4
Vietnam and Bangladesh have emerged as two of the world’s biggest exporters of clothing over the last 20 years in part because of low relative unit labour costs attracting heavy FDI

17. Biggest Exporters of Manufactures in the World in 2015
** Includes significant shipments through export processing zones
World Trade Report 2016 (Source: WTO)
Share of Global Exports (%)
Value $bn
1980
1990
2000
2015
European Union
4239
43.0
36.6
China **
2153
0.8
1.9
4.7
18.6
United States
1126
13.0
12.1
13.8
8.7
Japan
545
11.2
11.5
9.6
Korea, Republic of
470
1.4
2.5
3.3
4.1
Hong Kong, China
437
of which re=exports
432
México **
312
0.4
1.1
3.0
2.7
Singapore
266
1.6
2.3
Taiwan
240
2.6
2.1
Canada
208
3.1
3.7
1.8
The Europe Union’s share of global exports in manufacturing has declined from 43% in 2000 to 36.6% in The share of the USA and Japan has also fallen significantly.

18. Economies by size of merchandise trade, 2015
In 2015, China was once again the world’s leading merchandise exporter and the United States the leading merchandise importer. The top five traders – namely China, United States, Germany, Japan and the United Kingdom accounted for more than one-third of world trade while the top three countries accounted for more than one-quarter.
Source: World Trade Organisation Annual Review of Trade, data is for 2015

19. Key Abbreviations for Common Markets / FTAs
ACP African, Caribbean and Pacific Group of States
ASEAN Association of South-East Asian Nations
AFTA ASEAN Free Trade Area
CACM Central American Common Market
CARICOM Caribbean Common Market
CEMAC Economic and Monetary Community of Central Africa
CIS Commonwealth of Independent States
COMESA Common Market for Eastern and Southern Africa
ECCAS Economic Community of Central African States
ECOWAS Economic Community of West African States
EFTA European Free Trade Association
EU European Union
MERCOSUR Southern Common Market
NAFTA North American Free Trade Agreement
SAARC South Asian Association for Regional Co-operation
SADC South African Development Community
SAPTA South Asian Preferential Trade Arrangement
WAEMU West African Economic and Monetary Union
Source: World Trade Organisation Annual Review of Trade, data is for 2015

20. TPP Partners in World Exports and Imports (% share)
Source: World Trade Organisation Annual Review of Trade, data is for 2015