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Describe the current trading patterns of the European Union (both internal trade and external trade) and explain the factors that influence these trading patterns. - Leaving Cert Geography - Question 88 - 2018
Question 88
Describe the current trading patterns of the European Union (both internal trade and external trade) and explain the factors that influence these trading patterns.
Worked Solution & Example Answer:Describe the current trading patterns of the European Union (both internal trade and external trade) and explain the factors that influence these trading patterns. - Leaving Cert Geography - Question 88 - 2018
Step 1
Internal trade patterns identified
Answer
The internal trade patterns of the European Union (EU) reflect a high degree of integration among member states, characterized by a common market. This integration has resulted in significant trade among EU countries, facilitated by the absence of tariffs and non-tariff barriers. A notable feature is the trade in goods and services, especially in sectors such as machinery, pharmaceuticals, and automobiles. Member states like Germany, France, and the Netherlands are major players, exporting and importing substantial amounts to and from one another.
Step 2
External trading pattern identified
Answer
The EU's external trade patterns show a diverse range of partners. The EU is one of the largest trading blocs globally, engaging in significant trade with countries across the world, including the United States, China, and Japan. Currently, there is a noticeable focus on exporting agricultural products and machinery, while importing raw materials and consumer goods. Trade agreements, such as those with the Mercosur countries and various African nations, are shaping these external trade patterns.
Step 3
Factors influencing trading patterns identified
Answer
Several factors influence the trading patterns of the EU, including:
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Economic Factors: The economic stability of EU member states and their comparative advantages shape trade dynamics. Countries with stronger economies tend to be major exporters.
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Political Factors: Trade policies and agreements play a crucial role in defining relationships with external partners. The EU’s regulatory framework and trade agreements influence both internal and external trading patterns.
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Geographical Factors: Proximity to other markets enables easier trade logistics. Countries bordering large economies benefit from increased trade opportunities.
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Technological Advancements: Improvements in transportation and communication technologies enhance the efficiency of trade operations, impacting internal and external trading patterns.
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Cultural Factors: Shared cultural and historical ties among EU countries foster stronger trade relationships internally, while cultural affinity with non-EU countries can influence external trade.
These factors are interrelated and collectively contribute to shaping the trading landscape of the European Union.