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Trade in the Contemporary World

South–south trade and the growth of traded services

  • 3 things to know
  • Component 02

Overview

Recall questions on the growth and share of south–south trade, China as Africa's largest trading partner and the composition of that trade, the Belt and Road Initiative and its critics, the advantages and inequalities of south–south trade, and the share, types and development benefits of traded services, including tourism.

What you need to know

Answer each one before you reveal it.

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Key term

What is meant by south–south trade?

Key term

Explain why south–south trade has grown so rapidly this century.

Numbers

Since when has China been Africa's largest single trading partner?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What is meant by south–south trade?

    Model answer

    South–south trade is trade between developing and emerging economies rather than with the advanced countries of the global north.

  2. 2

    Explain why south–south trade has grown so rapidly this century.

    Model answer

    Industrialisation and rising incomes in emerging economies created both the goods to sell and the consumers to buy them, while lower trade barriers and better transport made trading with each other cheaper.

  3. 3

    Roughly what share of world merchandise trade is now south–south?

    Model answer

    South–south flows now account for roughly a quarter of world merchandise trade, having been only a small fraction of it in the early 1990s.

  4. 4

    Since when has China been Africa's largest single trading partner?

    Model answer

    China has been Africa's largest single trading partner since 2009.

  5. 5

    Describe the typical composition of trade between China and African countries.

    Model answer

    African countries mainly export oil, ores and other raw materials, while China supplies manufactured goods, machinery and construction services.

  6. 6

    What is China's Belt and Road Initiative?

    Model answer

    It is a programme launched in 2013 to finance and build ports, railways, roads and pipelines across Asia, Africa and Europe in order to strengthen trade links with China.

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