Human Geography

Contemporary global trade patterns

Global trade involves the exchange of goods and services worldwide, showing strong interconnections between regions; dominated by a few powerful economies.

Inter-regional trade

Trade between different world regions, e.g. Asia–Europe, North America–Asia.

Intra-regional trade

Trade within a region, e.g. trade within the EU, ASEAN, or USMCA.

South–South trade

Growing trade between developing or emerging economies, e.g. Vietnam–China or Taiwan–ASEAN trade.

Asia’s role in global trade

Asia is the world’s largest trading region, led by manufacturing and technology exports from countries like China, Taiwan, and Vietnam.

Europe’s intra-regional trade

About 60% of EU trade stays within the EU, showing strong regional integration.

North American trade

High interdependence within the USMCA (USA, Mexico, Canada) trade bloc.

Trade and socio-economic development

Higher international trade values often reflect higher economic development, industrialisation, and improved living standards.

Rostow’s Model of Development

A five-stage model showing economic growth: 1) Traditional, 2) Preconditions for Take-off, 3) Take-off, 4) Drive to Maturity, 5) Age of High Mass Consumption.

Rostow Stage 1 (Traditional Society)

Economy based on subsistence farming and limited technology; minimal trade.

Rostow Stage 2 (Preconditions for Take-off)

Infrastructure and education investment begins; trade in raw materials starts.

Rostow Stage 3 (Take-off)

Rapid industrialisation and growth of manufacturing exports.

Rostow Stage 4 (Drive to Maturity)

Diversified economy; increasing complexity and value of trade.

Rostow Stage 5 (High Mass Consumption)

High incomes, consumer economy, trade in high-value goods and services.

Vietnam trade development

Before 1986, Vietnam had a centrally planned economy; post-Đổi Mới reforms opened it to global trade and investment, leading to export-led growth.

Vietnam’s trade characteristics

Exports electronics, textiles; trade value exceeds 200% of GDP; key partners include USA, China, Japan, South Korea.

Vietnam’s Rostow stage

Stage 3–4 (Take-off to Drive to Maturity).

Taiwan trade development

Rapid post-1950s industrialisation; transitioned from low-value manufacturing to high-tech exports (semiconductors).

Taiwan’s Rostow stage

Stage 5 (High Mass Consumption).

Taiwan’s main exports

High-value electronics and semiconductors (TSMC).

Economic factors increasing trade complexity

Globalisation, TNC growth, emerging markets, and global supply chains increase trade interdependence.

Political factors increasing trade complexity

Trade blocs (EU, ASEAN), free trade agreements, and geopolitics (e.g. US–China tensions) influence trade routes.

Technological factors increasing trade complexity

Containerisation, digitalisation, e-commerce, automation, and AI streamline and expand global trade.

Unequal flows of trade

Global trade is dominated by HICs; LICs often rely on exporting low-value raw materials, reinforcing global inequalities.

Core–periphery structure

HICs (core) control capital and technology; LICs (periphery) supply raw materials with limited profit gain.

Unequal terms of trade

Primary product prices fluctuate while manufactured goods retain higher, stable value; e.g. coffee vs. electronics.

Trade barriers

Tariffs and subsidies protect industries in HICs, disadvantaging LIC producers (e.g. EU farm subsidies).

Dependency in trade

LICs rely on few export sectors or TNCs; Vietnam depends on foreign manufacturing investment.

Environmental costs of trade

Export-led industrialisation increases pollution and carbon emissions (e.g. Vietnam’s industrial zones).

Social inequality in trade

Benefits of trade often concentrate in urban areas; rural populations remain poorer (e.g. rural–urban gap in Vietnam).

Trade opportunities

Global trade brings jobs, income, technology transfer, and improved infrastructure.

Trade challenges

Exploitation of workers, environmental degradation, dependence on TNCs, and vulnerability to global shocks.

Trade blocs

Groups of countries promoting free trade among members (e.g. EU, ASEAN, USMCA).

Globalisation

Increasing interconnection of economies through trade, investment, and communication.

Transnational corporations (TNCs)

Global firms that control production and trade networks (e.g. Apple, Samsung, TSMC).

Vietnam’s ASEAN integration

Boosted exports and foreign investment; improved living standards but created dependency risks.

Core countries examples

USA, Japan, Germany, Taiwan — dominate high-value exports.

Peripheral countries examples

LICs in Sub-Saharan Africa, parts of South Asia — export mainly raw materials.

Trade and inequality

Trade can fuel growth but also deepen global and regional inequalities.

Summary of Taiwan’s development

High-tech industrialisation, strong trade links, high GDP per capita — advanced economy in global trade system.

Summary of Vietnam’s development

Export-led industrialisation through reforms and FDI; strong manufacturing base but growing environmental and social challenges.