International Trade (AQA A Level Geography)

• International trade is the exchange of money, goods and services between countries
• The volume of international trade has increased considerably over time, with the period between 1980 and 2010 experiencing the fastest rate of growth
  • In 2000 the value of global trade was approximately $6.45 trillion. By 2020 this figure was at $19 trillion
• The volume of international investment has also increased dramatically, with flows of FDI growing 10-fold between 1990 and 2015

Graph to show increase of global exports

• The pattern of international trade and investment is changing, with LDE and EME countries playing a more significant role
• In the past, western countries such as USA, Germany and UK dominated global trade and investment
• China is now the largest exporter of goods in the world, and while USA remains the world’s largest importer of goods, China is in second place
• HDE countries remain the most important source of FDI, however flows from LDE and EME countries have grown significantly e.g.China's Belt and Road Initiative
• Although USA is the largest recipient of FDI, EME countries now receive more than 50% of global FDI flows, with China the third largest recipient

Graph to show largest recipients of FDI in 2019 in billions of dollars