UK Trade Dynamics: Patterns, Trade Deals & Impact on Global Economy

This report provides an analysis of UK trade patterns, trade deals, and the key drivers that contribute to the success of international trade, particularly in relation to the UK's economy and its interactions with the rest of the world. It examines the impact of Brexit on UK trade policies and the various trade agreements the UK has signed with other countries, highlighting the importance of free trade policies. The report also identifies key drivers such as services, labor and taxation, transportation and communication, and government and society, which have played a crucial role in boosting the UK's economic growth. Furthermore, it discusses the effects of these trade deals on both the UK and international economies, including increased global output and above-average rates of return. The analysis emphasizes the significance of trade in reducing economic disparities and promoting sustainable economic growth.

Global Economy

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
UK trade patterns....................................................................................................................3
Trade deals that UK has signed with rest of the world...........................................................5
Key drivers that played an important role in success of international trade..........................6
Effect that trade deals have had on both UK and International economies............................8
Conclusion.......................................................................................................................................9
References .....................................................................................................................................10

Introduction
Global economy is a combination of various economies of countries. There are variety of
factors that affects global economy. This includes; population, labour, infrastructure, Human
capital, technology etc. In regards to UK economic outlook, (2021), implications of lifting social
distancing restrictions and government's support in respect to households and businesses were
being mentioned. Tracking back to stats of UK economy, said economy was greatly influenced
by globalisation since its bringing i.e. 18th century (UK Economic outlook, 2021). Globalisation
and international trade highly impacts over operational working of several businesses in an
economy. As the term suggest i.e. globalisation enabled removal of trade barriers which
enhanced ability of corporate firm to operate outside their domestic countries. On the other hand,
through international trade outsourcing of products and services were much common. there were
significant impact caused by both elements that included, increase in competition to domestic
business, opportunity to any new or existing businesses, availability of variety of products and
services making consumer selective, bringing in new technology and promoting innovation etc.
In the provided report document, evaluation over UK trade patterns, deals and key drivers
that plays a crucial role in success of international trade on contrast to ROW (Rest of the World)
will be taken into consideration. Further, given report will analyse on various effects caused in
respect to trade on both international as well as UK economies (Avetisyan, 2019).
Main Body
UK trade patterns
As mentioned by Tom Edgington, (2021), with impact of Brexit UK as an economy was
free to pursue its own trade deals with rest of the nation. So far given economy have signed trade
agreements and deals in principle with 69 countries among which one in EU. In its inclusion fair
trade directs its aims with respect to making much more cheaper trades between several nations.
This can be achieved through eliminating or reducing tariffs which generally includes additional
charges or taxes as imposed by government across borders. The latest UK trade is an inclusion of
considering trade principles in New Zealand. In light to the fact that New Zealand and UK trade
will account to less than 0.2% GDP of the nation. However, economy will develop better
standards by implementation of free trade policy which will be exclusion of any unwanted

government tariffs or charges. Furthermore, the deal could lead to more New Zealand lamb being
sold in the UK (Brexit: What trade deals has the UK done so far?).
According to an article published in BBC, (2021), government of UK have announced
plans to boost UK's annual exports to £1 trillion by the end of the decade. Over period of time
there are significant changed patterns and strategies are being noticed. In addition to this, trade
for the given economy have contributed pivot to GDP of the country. The volume of both
imports and export in UK have grown steadily in recent years. Among various products or
services that are being exported by company are an inclusion of auto-mobiles, machinery and
various other transport equipments, electronic equipments, chemical, oil etc. Further, the country
exports 1/10th of its foodstuff and 1/3rd of transport and machinery equipments (UK announces
plan to boost overseas trade, 2021).
From the analysis of the above bar chart provided, it can be said that, Germany stays at
the top in list of major import source for the country. It can be said that, trade policy for the
country stays in favour of dealing with developed country, as Germany topped the list of
importer and second largest exporter for UK. Seeking to current market analysis i.e. as a result of
Brexit economy of given country faced a disaster. The said economy was greatly influence in
respect to trade decision making which was to leave the EU trade policy workings and define
economy separately (Buckle and Thompson, 2020).

By looking at the above bar chart provided, it can be said that, U.S. tops list of major
exporter for economy i.e. UK. The said economy's balance of payment are an inclusion of
transfer payments and trade in services. In addition to this, there was considerable increase in
foreign earnings and overseas investments. It seems that government of respective economy are
in very well support to policy of liberalisation an also have participated in international trade
organisations (De Marchi, Giuliani and Rabellotti, 2018).
Trade deals that UK has signed with rest of the world
There are variety of trade deals that are signed by UK with rest of the world. Effective
emphasis are being set in respect to promote productive economic growth in respect to fair trade
policies. This forms basis of good practise when dealing with ROW. In inclusive of these deals
key considerations to free-trade policies were being made. In contrast to this, it can be said that
as with bringing up of Brexit UK have to go through significant changes in respect to their trade
policies. Along with this, various businesses whether being small or large was being affected.
Post Brexit pure dedications were being made in respect to boost off economy of independent
nation and several efforts were being made in respect to up-bring the economy to its origin
economic growth (Dube, Nhamo and Chikodzi, 2021).
As mentioned by Alice Gladen, (2021), there was significant changes that were being
observed after Brexit. In turn there several amendments being made in trade policy of UK

economy and various attempts were being made in respect to trade deals with ROW. Following
are latest trade deals which is signed by UK with ROW (Trade after BREXIT – How’s it going
so far?); UK and Japan sign free trade agreements: Economy of UK have signed an economic
partnership agreement with Japan. The given agreement forms history as by evaluating
on major activities of trade deals being signed by an independent country. This further
offered glimpse of Global Britain's Potential (British Embassy Tokyo, 2020). UK applies to join huge pacific free trade area CPTPP: This complied with free trade
policy adopted by UK economy under guidelines of free trade policy. In its evaluation
merging with Pacific free trade area CPTPP will tie some of the fastest growing markets
in the world (Department for International Trade and The Rt Hon Elizabeth Truss MP,
2021). UK and Kenya sign trade agreements: The said partnership of UK with Kenya had
benefited the nation with over £1.4 billion in 2019. Economist of nation have provided
with some future rough projects with the nation which could double the figure so
obtained in 2019 (Department for International Trade, James Duddridge MP, and Ranil
Jayawardena MP, 2020). UK signs trade Partnership agreement with Ghana: In inclusion of said agreement
between two respective nation, greater economic and corporation of culture will be
promoted. In its inclusion social objectives or CSR will be taken into consideration
(Department for International Trade, James Duddridge MP, Ranil Jayawardena MP,
and The Rt Hon Elizabeth Truss MP, 2021).
 UK and Cameroon sign trade: Under the agreement key considerations to UK-Cameroon
EPA will be focused. Under the trade key decision will be made in respect to optimising
the flow of goods between the nations and discussion over free-trade will be made
(Duddridge MP, and Ranil Jayawardena MP, 2021).
Key drivers that played an important role in success of international trade
International trade relates to allowing countries to expand their respective markets along
with accessing goods and services in accordance with their unavailability in domestic markets.
The said approach provides variety of benefits to an economy among which providing variety of
products and services to economy consumers that also correlates for being selective. Existence of

key drivers plays a crucial role in developing better economic growth once nation. In relation to
economy of UK, there were several drives that helped economy to boost their growth
(Fernandez-Moya, 2019); Services: In accordance with noticeable growth seen in service industries in UK, it have
contributed towards growth of the economy. Services like movie theatres, laundries,
public transport etc. had their effective role in enhancing the growth of the economy.
With a believe that, when an economy is stronger in its internal operations leads path
towards boosting economy of once region (Geisler and Schlough, 2018). Labour and taxations: Being said that revenue of government are majorly derived from
system of taxations and other related policy adopted in the region. In relation to economy
of UK, there are several strategies adopted by government of the nation in respect to pull
effective derivates from the approaches of taxation and managing labour forces.
Moreover, it can be said that, such practices leads to rise in GDP of the nation and
contributes as a whole to ensure effectiveness of policies and strategies opted in the
region internally (Lansbury and et. al., 2020). Transportation and communication: With the fact that, UK have small area relative to
high population density. Legislation of said nation had gone significant efforts with pure
dedications to develop transportation and communication in provided region. This was
approached through use of digital technologies and enabled with better standards of
living in the region had some effective communication channels, that further contributed
towards optimal usage of resources being made available in the country (Roberts and et.
al., 2019).
 Government and society: UK is being regarded as constitutional monarchy and a
parliamentary democracy. Policies and relative operations are being performed in respect
to develop sense of good structural economy in which supportive image of legislative
authority is being displayed by UK government bodies. In respect to development in
society economy of country plays a vital role. In inclusive of technique better approaches
to proceed with legislative activities in the economy.
Through upcoming of such drives it contributed its crucial role in success in international
trade. In contrast to such drives various others of economy was also being optimised and carried
better approaches to regulate usage of resources of an economy. In light to the fact that, trade is

recognised as key factor that forms part of 2030 agenda in respect to reduce economic
disparities. This is an inclusion of economic growth through poverty reduction. Contrasting to
real world instances of COVID-19, economy has gone through its hard times and also due to
disease there was various disturbances of mental as well as physical health of individuals living
in the economy. Therefore, through usage of factors like; Services, Transportation and
communication, Labour and taxations, Government and society an economy can enable
effective development and shape efforts in effective direction towards attainment of success in
international trade.
Effect that trade deals have had on both UK and International economies
In light to the fact that, in 19th century UK was known as one of the most powerful
trading nation in the world. In post years of the economy the boom which was caused in respect
to greeting the economy with one of the developed economy of the world. This was in relation to
major trade activities that were being focused in respective economy of UK. Further, given
approach is classified as centra to end poverty and is also observed to be basis of development
when engaging in services and faster economic growth of an economy. In relation to trade deals
effect had on both UK and international economies are as follows (Oxford Analytica, New
Zealand’s economy looks positive in uncertain 2019); Increase in global output: UK economy when trading in international economies have
reported to be positive advantage to the economy. This advantage was in terms of
increase in global output with country and related favourable terms of trade effect. Above average rate of return: Another effect that have contributed towards economy of
UK when dealing with international economies says about positive average rate of
return. This benefits the economy and provided good contribution towards respective
economic growth (Schröder and et. al., 2019). Foreign direct investments: In light to the fact that, economies participating in
international trading not only gets advantages of economic growth through interest rates
or fluctuating prices of commodities. However, greater influence over FDI is also
explored as an opportunity when dealing in international trade. In terms of UK economy,
individual traders of residing in UK have good opportunity to invest their valuable
resources through the process and gain advantages under procedures of FDI.

 Facilitates competitive advantages: Another effect that is caused in respect to when
trading of UK in international markets are being governed is related to providing
competitive advantages to UK businesses. Under this good opportunities are being
provided to businesses being working in UK region and when they are given
opportunities to work in any under-developed to developing economy they can gain
effective competitive advantages. This can be supported through usage of innovative or
advanced technology and performing market researches in the respective area.
Conclusion
From the analysis of above report document, it can be concluded that, trade activities in
UK economy played a vital role in boosting economic growth. In given document instances of
UK trade patterns were being highlighted which showed trading of mentioned economy with
European and rest of the world. Furthermore, said report paper reflected on key drives that
played a vital role in enhancing success of given economy when dealing in international trade.
Lastly, said document develops standards of understandings in form of effect that trade deals
have had on both UK and international economies.

References
Books and Journals
Avetisyan, S., 2019. Book Review: The End of Alchemy. Banking, and the Future of the Global
Economy by Mervyn King. Banking, and the Future of the Global Economy by Mervyn
King (February 10, 2019).
Buckle, M. and Thompson, J., 2020. The UK financial system: Theory and Practice. Manchester
University Press.
De Marchi, V., Giuliani, E. and Rabellotti, R., 2018. Do global value chains offer developing
countries learning and innovation opportunities?. The European Journal of Development
Research, 30(3), pp.389-407.
Dube, K., Nhamo, G. and Chikodzi, D., 2021. COVID-19 cripples global restaurant and
hospitality industry. Current Issues in Tourism, 24(11), pp.1487-1490.
Fernandez-Moya, M., 2019. Battling Giants: Spanish Publishing Multinationals in the First
Global Economy. Enterprise & Society, 20(4), pp.1007-1043.
Geisler, T.L.C. and Schlough, C., 2018. Preserving Community Agriculture in a Global
Economy. In Under the Blade (pp. 181-216). Routledge.
Lansbury, R.D., Wright, C.F., Bamber, G.J. and Wailes, N. eds., 2020. International and
comparative employment relations: National regulation, global changes. Routledge.
Oxford Analytica, New Zealand’s economy looks positive in uncertain 2019. Emerald Expert
Briefings, (oxan-db).
Roberts, C., Blakeley, G., Rankin, L. and Statham, R., 2019. The UK in the global economy.
Schröder, P., Anantharaman, M., Anggraeni, K. and Foxon, T.J. eds., 2019. The circular
economy and the Global South: sustainable lifestyles and green industrial development.
Routledge.
Online
Brexit: What trade deals has the UK done so far? 2021. [Online]. Available at:
<https://www.bbc.com/news/uk-47213842>
British Embassy Tokyo, 2020. [Online]. Available at:
<https://www.gov.uk/government/news/uk-and-japan-sign-free-trade-agreement>
Department for International Trade and The Rt Hon Elizabeth Truss MP, 2021. [Online].
Available at: <https://www.gov.uk/government/news/uk-applies-to-join-huge-pacific-
free-trade-area-cptpp>
Department for International Trade, Foreign, Commonwealth & Development Office, James
Duddridge MP, and Ranil Jayawardena MP, 2021. [Online]. Available at:
<https://www.gov.uk/government/news/uk-and-cameroon-sign-trade-
agreement#:~:text=Today%20(9%20March%202021)%20the,Albert%20Fotabong
%20Njoteh%20in%20London>
Department for International Trade, James Duddridge MP, and Ranil Jayawardena MP, 2020.
[Online]. Available at: <https://www.gov.uk/government/news/uk-and-kenya-sign-
trade-agreement>
Department for International Trade, James Duddridge MP, Ranil Jayawardena MP, and The Rt
Hon Elizabeth Truss MP, 2021. [Online]. Available at:
<https://www.gov.uk/government/news/uk-signs-trade-partnership-agreement-with-
ghana>

Trade after BREXIT – How’s it going so far? [Online]. Available at:
<https://ihsmarkit.com/research-analysis/trade-after-brexit--hows-it-going-so-far.html>
UK announces plan to boost overseas trade, 2021. [Online]. Available at:
<https://www.bbc.com/news/business-59313263>
UK Economic outlook, 2021. [Online]. Available at:
<https://home.kpmg/uk/en/home/insights/2018/09/uk-economic-outlook.html>