What are patterns of trade? (WJEC Eduqas GCSE Geography B): Revision Note

Specification links

The notes on this page cover part 1.3.3 of the WJEC Eduqas B specification – What are the causes and consequences of uneven development?

• The pattern and the impact of trade between nations at different levels of development, including the UK and at least one Low Income Country (LIC) and one Newly Industrialised Country (NIC)* (the same countries used in the first strand of 1.3.3).

• Concepts of trade must include imports, exports, trade partnerships/blocs, tariffs and 'fair trade'.

• How patterns of trade can cause uneven development.

• How trade can be used to reduce global inequalities.

Concepts of trade

• Trade is the exchange of goods and services between people or countries

  • When one country sells something to another country, it is called exporting

  • When countries buy something from another country, it is called importing

• Trade allows countries to get things they need but do not produce themselves

  • For example, the UK might import bananas from countries with warmer climates

• Trade can happen within a country or between countries and can also involve services, like banking or tourism, not just physical products

Trade partnerships and blocs

• Trade blocs lower barriers within the group and can boost intra-bloc trade; examples include ‘EU’, ‘CPTPP’, ‘RCEP’ and ‘AfCFTA’

• The UK now trades via a network of bilateral and plurilateral agreements after leaving the EU and has joined ‘CPTPP’ to deepen links in the Indo-Pacific (DBT overview and trade stats compendium (opens in a new tab))

• Blocs can create ‘insiders’ and ‘outsiders’, reinforcing uneven development when LICs are excluded from special access

Tariffs and non-tariff barriers

• A ‘tariff’ is a tax on imports set within the ‘World Trade Organisation’ system, and applies import rates to reduce protectionism (WTO 2025 (opens in a new tab))

• Non-tariff barriers include product standards, rules of origin and customs procedures that can be especially challenging for LIC exporters

Fairtrade

• Fairtrade is an international movement that helps producers in poor countries get a fair deal by setting standards for trade 

• The product has a better position in the global market

• Part of the end price is invested back into the local community and future development projects

  • Example: Over 90% of small coffee farmers in eastern Uganda have joined the Gumutindo Coffee Cooperative, which allows the coffee to be milled before roasting, which adds value to the coffee and increases the farmers' income

Freetrade

• This is a top-down approach where countries do not charge tariffs and quotas between themselves; this encourages trading free of taxes and charges and can be beneficial to LICs

Pattern of trade between nations

• The UK is a ‘services superpower’

  • It trades heavily with HICs in Europe and North America, with the United States consistently the UK’s largest single export market [official ONS and DBT data] (ONS ‘UK trade’ (opens in a new tab) 2025 tables (opens in a new tab))

• India trades globally in both services and manufactured goods

  • It has strong links to Asia, the EU and the USA, reflecting its NIC status and diversified economy (India Ministry of Commerce trade statistics (opens in a new tab))

• Nepal’s trade profile is typical of an LIC

  • It has a narrow export base and high reliance on imports from regional neighbours, especially India and China, contributing to a persistent trade deficit (World Bank WITS Nepal (opens in a new tab))

Is trade fair between nations?

• Trade is often promoted as the key to economic development

  • It allows countries to sell their resources so they can invest in things to improve their development, such as education and healthcare

  • This money means they can import goods which can further their development, such as tractors or communication technology

• Trade is not always fair

  • LICs are usually paid less for their exports than HICs

    • They also experience more swings in prices and slower growth

  • LICs countries are disadvantaged by trade barriers

  • Trade agreements usually favour HICs and MICs

  • Countries with diversified exports, services specialisms and stable market access grow faster

• The UK keeps its HIC status through high-value services and advanced manufacturing exports

• Nepal remains an LIC because of its small exports but high imports

• The concentration of India's trade-driven growth in coastal and IT hubs has widened internal gaps and impacted rural states

  • It has produced a 'core–periphery' pattern that is supported by FDI and export infrastructure

How trade can reduce global inequalities

• When combined with infrastructure and digital systems, 'trade assistance' lowers the costs of crossing borders and makes it easier for small exporters in LICs to reach markets

• Preferential access, Aid for Trade, quality upgrading and standards support can raise export value for LICs and NICs

• Fairtrade and ethical sourcing can help farmers make more money and pay for community services in areas where they grow crops (Fairtrade International).