Describe two types international trade related geography for class 12 ...
Usually there are two types of international trade one is bilateral trade , another is multilateral trade.
When a trade agreement between two countries conducted its called bilateral trade side by side when a trade agreement between more than two countries conducted then it is called international trade
Describe two types international trade related geography for class 12 ...
Types of International Trade-related Geography
International trade plays a crucial role in the global economy, and it is influenced by various geographical factors. Understanding these factors is essential to comprehend the patterns and dynamics of international trade. There are two main types of international trade-related geography: physical geography and economic geography.
1. Physical Geography
Physical geography refers to the natural features and environmental conditions that affect international trade. It includes the following factors:
Climate and Weather: The climate and weather conditions of a region can influence the types of goods produced and traded. For instance, countries with a favorable climate for agriculture may export agricultural products, while those with extreme weather conditions may import food.
Topography: The physical features of a region, such as mountains, rivers, and coastlines, can impact trade routes, transportation costs, and accessibility to markets. For example, landlocked countries may face challenges in exporting and importing goods due to limited access to seaports.
Natural Resources: The availability of natural resources in a region can greatly influence international trade. Countries rich in natural resources like minerals, oil, or gas may export these commodities, while resource-poor countries may need to import them.
Transportation Infrastructure: The presence of well-developed transportation infrastructure, including roads, railways, ports, and airports, is crucial for facilitating trade. Efficient transportation networks reduce costs and improve the accessibility of goods to international markets.
2. Economic Geography
Economic geography focuses on the economic factors that shape international trade patterns. It includes the following aspects:
Market Access: The proximity to large consumer markets can impact a country's trade opportunities. Countries located closer to major markets may find it easier to export goods and benefit from economies of scale.
Trade Agreements: The existence of regional or bilateral trade agreements can affect the volume and nature of international trade. These agreements can eliminate or reduce trade barriers, promote market integration, and facilitate the movement of goods and services.
Specialization and Comparative Advantage: Economic geography also considers a country's specialization in certain industries based on its comparative advantage. This refers to the ability to produce goods or services at a lower opportunity cost compared to other countries. Specialization allows countries to focus on producing goods in which they have a competitive advantage and trade them for goods they lack.
Political Factors: Political stability, government policies, and regulations can impact international trade. Favorable political conditions, such as stable governments and supportive trade policies, can attract foreign investment and encourage trade.
Cultural Factors: Cultural factors, such as language, customs, and preferences, can influence trade patterns. Countries with shared cultural traits may have stronger trade relationships due to easier communication and understanding of consumer preferences.
In conclusion, understanding the physical and economic geography of international trade provides insights into the factors that shape trade patterns between countries. Physical geography influences the availability of resources, transport infrastructure, and climatic conditions, while economic geography considers market access, trade agreements, specialization, and political and cultural factors. By analyzing these geographical factors, policymakers and businesses can make informed decisions to enhance trade relationships and promote economic growth.
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