11. Patterns of World Trade

Case Study 1: Global Trade Fragmentation and Supply Chain Disruptions

Theories and Perspectives Applied to Trade Patterns:

• Comparative Advantage Theory (Ricardo, 1817) – Countries specialize in goods they produce efficiently.
• World Systems Theory (Wallerstein, 1974) – Core-periphery dynamics shape global trade.
• Global Production Networks (Coe et al., 2008) – Industries integrate into international supply chains.
• Limits to Growth Model (Meadows et al., 1972) – Resource constraints affect trade expansion.
• Technocentric Approach (Boserup, 1965) – Innovation enhances trade efficiency.

Theorists Behind the Principles:

• David Ricardo (1817) – Comparative advantage in trade specialization.
• Immanuel Wallerstein (1974) – Core-periphery structure in global trade.
• Neil Coe et al. (2008) – Globalized production networks influence trade.
• Donella Meadows et al. (1972) – Resource depletion limits trade expansion.
• Ester Boserup (1965) – Technological advancements drive trade efficiency.

Models/Theories/Laws Applied:

• Trade Diversification Model – Countries shift trade partners due to geopolitical tensions.
• Supply Chain Optimization Framework – Global networks influence trade flows.
• Environmental Sustainability Model – Resource constraints shape trade policies.
• Systems Analysis Approach – Evaluating trade fragmentation trends through multiple indicators.

Recent Data:

• Global Trade Growth: Slowed to 2.3% in 2023 due to geopolitical tensions.
• Supply Chain Disruptions: Semiconductor shortages affecting global manufacturing.
• Trade Realignments: Countries diversifying supply chains to reduce dependence on single markets.

Spatial Variation:

• Asia: High trade integration due to manufacturing dominance.
• Europe: Moderate trade shifts due to energy dependencies.

Temporal Variation:

• Historical Trends: Trade fragmentation accelerating since COVID-19 pandemic.
• Future Projections: Expected rise in regional trade agreements.

Source:

• World Trade Report 2023

Insight:

Global trade fragmentation validates World Systems Theory, showing how geopolitical shifts reshape trade patterns.

Case Study 2: Trade Liberalization and Economic Growth – ASEAN

Theories and Perspectives Applied to Trade Patterns:

• Comparative Advantage Theory (Ricardo, 1817) – Countries specialize in goods they produce efficiently.
• World Systems Theory (Wallerstein, 1974) – Core-periphery dynamics shape global trade.
• Global Production Networks (Coe et al., 2008) – Industries integrate into international supply chains.
• Limits to Growth Model (Meadows et al., 1972) – Resource constraints affect trade expansion.
• Technocentric Approach (Boserup, 1965) – Innovation enhances trade efficiency.

Theorists Behind the Principles:

• David Ricardo (1817) – Comparative advantage in trade specialization.
• Immanuel Wallerstein (1974) – Core-periphery structure in global trade.
• Neil Coe et al. (2008) – Globalized production networks influence trade.
• Donella Meadows et al. (1972) – Resource depletion limits trade expansion.
• Ester Boserup (1965) – Technological advancements drive trade efficiency.

Models/Theories/Laws Applied:

• Trade Liberalization Model – Reduction of tariffs and barriers enhances trade.
• Regional Economic Integration Framework – ASEAN’s trade agreements boost economic growth.
• Environmental Sustainability Model – Resource constraints shape trade policies.
• Systems Analysis Approach – Evaluating trade liberalization trends through multiple indicators.

Recent Data:

• ASEAN Trade Growth: Exports increased by 5.2% in 2023 due to trade liberalization.
• Investment Trends: Foreign direct investment (FDI) inflows rising in manufacturing and technology sectors.
• Policy Impact: Regional Comprehensive Economic Partnership (RCEP) strengthening intra-Asian trade.

Spatial Variation:

• Singapore and Vietnam: High trade integration due to liberal policies.
• Indonesia and Philippines: Moderate trade growth with emerging industries.

Temporal Variation:

• Historical Trends: Trade liberalization accelerating since 2000s.
• Future Projections: Expected rise in digital trade agreements.

Source:

• Key Statistics and Trends in International Trade 2023

Insight:

ASEAN’s trade liberalization validates Comparative Advantage Theory, emphasizing the role of policy-driven economic growth.