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European Union – Trade Describe the current trading patterns of the European Union (both internal trade and external trade) and explain the factors that influence these trading patterns. - Leaving Cert Geography - Question 88 - 2018
Question 88
European Union – Trade Describe the current trading patterns of the European Union (both internal trade and external trade) and explain the factors that influence t... show full transcript
Worked Solution & Example Answer:European Union – Trade Describe the current trading patterns of the European Union (both internal trade and external trade) and explain the factors that influence these trading patterns. - Leaving Cert Geography - Question 88 - 2018
Step 1
Describe the current trading patterns of the European Union – Internal Trade
Answer
Internal trade within the European Union (EU) is characterized by the free movement of goods, services, and capital among member states. This trading pattern includes a high level of intra-EU trade, where countries trade within the union, benefiting from reduced tariffs and shared regulations. Key products traded internally include machinery, chemicals, vehicles, and manufactured goods. The trade patterns are influenced by the geographic proximity of member states, economic ties, and integration initiatives such as the Single Market.
Step 2
Describe the current trading patterns of the European Union – External Trade
Answer
Externally, the EU is one of the largest trading blocs in the world. The EU's external trade connections include trading with countries such as the United States, China, and Japan. The primary exports include machinery, vehicles, and pharmaceuticals, whereas the main imports are raw materials, energy, and consumer goods. External trade relationships are shaped by trade agreements, tariffs, and regulatory standards that member states adopt collectively.
Step 3
Explain the factors influencing trading patterns
Answer
Several factors influence the trading patterns of the EU:
- Economic Policies: The EU's common trade policies and regulations facilitate smooth trade among member states and with external partners.
- Geography: Proximity to other countries often dictates trade patterns, with geographically neighboring countries engaging in more trade due to lower transportation costs.
- Market Demand: The demand for goods and services within the EU and globally influences production and export strategies.
- Political Relations: Diplomatic relations between the EU and other countries can impact trade agreements and economic partnerships.
- Infrastructure: Well-developed transport and logistics infrastructure significantly enhance trade efficiency within the EU.