Trends in International Trade (Leaving Cert Business): Revision Notes

Trends in International Trade

Trends in Free Trade

The landscape regarding international trade has changed due to the emergence of some key trends:

• Brexit: The UK's departure from the EU has significant implications for trade policies, tariffs, and economic relations within Europe and globally.

• Globalisation: Continued integration of global economies promotes cross-border trade, investment, and cultural exchange. However, this is challenged by nationalism and protectionism.

• Improved Information and Communications Technology: Advances in technology enhance global connectivity, making it easier to conduct international trade and manage global supply chains.

• Increasing Number of Trading Blocs: Formation of regional trade agreements and economic blocs that facilitate trade among member countries while potentially creating barriers to non-members. Examples include the European Union (EU) and the United States-Mexico-Canada Agreement (USMCA).

• New Markets: Expansion into emerging and developing markets, offering new opportunities for trade and investment as these economies grow and integrate into the global system.

• Competition from Low Wage Economies: Developed countries face increased competition from countries with lower labour costs, affecting manufacturing, outsourcing, and global trade dynamics. An example of a country with lower costs is China.

*Brexit has significantly impacted trade between the UK and EU, as it has introduced barriers which did not exist when the UK was part of the single market. *