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Question 1
Using Figure 2 and your own knowledge, assess the extent to which this pattern is similar to the global trade in a food commodity or manufactured product you have st... show full transcript
Step 1
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Trade patterns for food commodities are heavily influenced by geographical factors, primarily where the food is cultivated. For instance, many countries in Latin America, such as Brazil and Argentina, are leading exporters of soybeans and other grains due to their favorable climates and vast arable land. A significant amount of these exports goes to developed countries, similar to the oil trade where regions like the Middle East export crude oil to North America and Europe.
Moreover, food commodities generally have varying export percentages. For instance, food exports from Africa, particularly in countries like Kenya, show that high-value crops are in demand, especially by European markets. This mirrors the oil trade export dynamics where Middle Eastern countries have a significant share in supplying oil on the global stage.
Step 2
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In comparison, the trade in manufactured goods varies widely based on labor costs and production capabilities. For instance, countries in Southeast Asia, such as Vietnam and Bangladesh, are substantial producers of textiles and garments, exporting vast quantities to western markets. This contrasts with the more centralized nature of oil production, which is often concentrated in specific regions. Furthermore, manufactured goods may be influenced by technological innovations, affecting where they are produced, unlike the more static geography of oil production.
Additionally, the price volatility of manufactured goods can differ from the more stable pricing of oil, which is influenced by geopolitical factors and supply-demand dynamics. Overall, while both sectors demonstrate global interdependencies, the underlying mechanisms of trade and production differ significantly.
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