Can someone explain the relation between trade and world output. Describe the broad pattern of international trade.© BrainMass Inc. brainmass.com March 4, 2021, 7:57 pm ad1c9bdddf
Trade output is affected by world output, in a supply and demand type of relationship. If the world output is low in any given year, then the trade output will be low as well. In times of economic recession, or catastrophe for that matter, people will not purchase as many products as they would if comfortable about their financial and personal future. Also, if in times of recession, a country's currency may be weakened in value, making imports from other countries much more expensive. (Wild, Wild, Han. 2005, Ch.5)
Trade patterns are viewed by examining trade and world output, providing insight on trade patterns and ...
The expert explains the relation between trade and world output. Describe the broad pattern of international trade.