International Economics U.K.

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What are the UK’s major exports and imports? Who are the UK’s major trading partners? What trade theories can explain these patterns?
In order to understand UK’s position in world trade, what its exports and imports are, and which its major trading partners are, the history of its economy and position in world trade has to be contemplated prior. The structure of the British economy has been transforming through time, in addition to the nation’s trade regarding both its goods and services. Britain was the first industrial nation; this explains the dominion it had in world trade. As this is the case, trade theories help explain the nation’s pattern of trade, considering its offer in knowledge and technology.

Since the start of the 1900s Britain was capable to settle its debt on a multilateral basis. For example, UK would resolve part of its large deficit with the USA through the surpluses it earned with “Empire Countries”, such as India, with whom the USA, had deficit.
By the Nineteenth century, Britain’s major sources of imports in order of significance were: The United States with cereals, meat and cotton; India with tea and wheat; Australia and South Africa, with wool and meat, and Canada with grain, timber and flour. UK’s trading partners were often countries it had colonial links. Its location in north-western Europe also accounted for some strategic trading partners, which were: France south across the English Channel; the Republic of Ireland west across the Irish Sea; Belgium, the Netherlands, Germany, Denmark, and Norway east across the North Sea. UK was basically the workshop of the world; it would trade with its Empire and then re-trade to more industrial countries.

I agree with several historians who believe that competition from Germany, USA, and Japan caused Britain to turn increasingly to the exploitation of its realm. Especially those of…...

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