Question;
Explain, in brief, the contemporary pattern of world trade. ( 64th BPSC, 2019)
Answer:
The general meaning of trade is the exchange of goods and services between countries. The contemporary pattern of world trade can be well understood by categorizing the countries into three groups.
- Developed countries
- Developing Countries
- Under developing countries.
The following are patterns of world trade:
- Developed countries have the largest share of world trade and they export valuable goods[ machinery, automobiles, defense types of equipment, electronics items] and services and import cheaper goods [ such as agricultural and forest goods] and services from other countries.
- The largest volume of trade happens between developed countries.
- Developed countries' share of global trade is decreasing and the share of developing countries on global trade is increasing.
- For example,
- In 2005, the share of European countries was approx. 44 % of global trade wheres share of Asian. countries were around 26 %
- In 2012, the share of European countries get decreases from 44 % in 2005 to 35 % in 2012 whereas the share of Asian countries gets increases from 26 % in 2005 to 32 % in 2012.
- Share of china's trade share on global trade increase from around 2 % in 1995 to 15% in 2020.
- The share of underdeveloped countries on global trade is minimum and they export mainly low values items such as raw materials of agriculture products, minerals, and forest products.
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