UK Trade Analysis: Trade Deals & Impact on International Trade

This report analyzes the UK's trade patterns, focusing on imports, exports, and service trade with key partners like the EU, United States, and China. It evaluates the impact of recent trade deals with New Zealand, the EU, and Australia, highlighting both benefits and drawbacks for UK farmers and the broader economy. The report also identifies key drivers for successful international trade, including communication, technology, emerging markets, increased profit potential, political stability, the global marketplace, and globalization/liberalization. It concludes by assessing the effects of these trade deals on both the UK and international economies, noting potential challenges and opportunities.

GLOBAL ECONOMY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Analysing UK trade patterns and overviewing UK trade with the rest of the world...................3
Discussing some of the trade deals of UK and its impact on international trade........................4
Considering the key drivers for the success of international trade..............................................5
Evaluation of the trade deals that effect both UK and International Economies.........................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1
Online References........................................................................................................................1
APPENDIX......................................................................................................................................2

INTRODUCTION
Global economy is also known as world economy that refers to the all economic activities
of the humans of the world. The economic activities that are conducted between the nations and
it includes consumption, exchange of finance , import, export, production, etc (Beliz and et.al.,
2019). In other words global economy means the collection or the total economic output or the
results, its impact or effect and also the movement of all countries. Globalization is helpful in
increasing the awareness and the communication all over the world about the business
opportunities and also gave the high impact on the international market as well as on the
marketers. It also refers to increase in economic integration as well as on economies of scale.
This report shows the trade pattern of UK with the rest of the countries and some of the trade
deals of UK. It also shows the impact of the trade deals on UK and the key drivers that are
important for the success of the international trade.
MAIN BODY
Analysing UK trade patterns and overviewing UK trade with the rest of the world
Trade patterns refers to the country's activities of the import and export of goods and
services and also refers to the capacity of the trade with rest of the countries in the whole world.
The UK exports its goods and services with the approximately 160 nations and one of the main
exports of UK is Cars. UK's largest trading partner is EU and exports 43% products
(Geographical pattern of UK trade, 2020). Among the list of the other countries United States is
the main and largest trading partner of UK. China is the fourth largest source of imports and the
sixth largest export partner of UK and also the United Kingdom is now expanding the trade with
China.
Imports of UK- UK imports several things from the other countries . It is the largest and the
biggest importer of Gold, preserved meat, self propelled rail transport, platinum and unpacked
medicaments in the world (Kang, Ratti and Vespignani, 2020). The top most or the main goods
that are imported by UK are machinery and equipments that also includes computers, gems and
other precious metals. Some other imports are gold, petroleum, vehicles and also the
broadcasting equipments that are imported from Germany, US, France and China.
Exports of UK- United Kingdom exports various types of goods and services to the other
countries and tries to establish and maintains the good and healthy relations in order to facilitates

the import and export services. The main and the major exports of UK are crude petroleum, gold,
cars, packaged medicaments , cars, etc. These exports are generally or mostly with the China,
Netherlands, Germany, France and United States.
Service trade of UK- United Kingdom exports as well as imports some services wit the rest of
the world such as it exports services are cultural and recreational services, sea transport,
professional and technical services, miscellaneous business, etc. and also exports some other
personal services. On the other hand, the services that are imported by UK are business travel,
insurance services, merchandising and some other services related to trade.
Products of UK- There are many specialized products of UK that can be measured by using the
index of RCA. RCA refers to an index that examine or analyse the ratio between the observed
and expected exports of UK in each and every type of product. United Kingdom is specialized in
some products such as railroad ties, hard liquor, sculptures, antiques, stainless steel ingots,
aircraft parts, brochures, paintings etc. Some of the most complex products of UK are
Equipments using alpha, beta and gamma rays, measuring and checking instruments nes,
electricity and radiation measuring instruments, microscopes, stainless steel bar or rod, coiled,
hot rolled, etc. However other products are instruments measuring length, drawing, machines for
testing mechanical properties of material, equipments for chemical and physical analysis, etc.
In this new era of modernization and globalization the fastest growing imports markets
of UK are Australia, Switzerland, Russia where as the largest growing export markets are China,
United States, Azerbaijan.
Discussing some of the trade deals of UK and its impact on international trade
Trade deals refers to the arrangement or the agreement among the different countries in
order to facilitates import and export services globally (Maffioli, 2020). There are three new
trade deals that are recently signed by the United Kingdom are with its largest trading partner
that is European Union, Australia and Japan. Also, in addition to these trade agreements there are
some other deals that are conducted by UK so that it can be able to cover approx. 67 nations of
the world. UK- New Zealand deal: The UK has made free trade deal at the time of Brexit with the
New Zealand out of which majority of the deals are roll-over when UK was the member
of EU. It has also signed trade agreements with the other 69 countries including EU
(Brexit: What trade deals has the UK done so far, 2021). Free trade deal is made by UK

in order to encourage the cheap trade between the countries. These deals mainly
includes goods as well as the trade of services occasionally. In order to make cheap
trade UK reduce the tariffs which refers to the taxes of government that are imposed on
various goods and services across the borders. The impact of this trade agreement is that
UK eliminates the taxes or the tariffs from some of the products like machines and
clothes. On the other hand, this deal the farmers of the UK and also the standard of the
food gets low. UK- EU trade deal: The United Kingdom signed a trades deal with the EU after the
Brexit so that the countries are able to decide the rules and regulations of the deal to
facilitates healthy trading relationship in the future (Pagliaro, 2020). This deal is very
important from the various point of views as EU is the closest and the biggest trading
partner of UK. In this agreement there were many quotas and taxes that made it
expensive in terms of trade. So, the impact of this deal is that UK have to follow the
strict laws on animal products which in turn results that there can be no export of some
products of UK.
 UK- Australia deal: The trade deal with Australia that was announced was the first deal
in which negotiation is done by the UK and this trade agreement is not yet implemented
as the farmer are not happy and are very much hurt by this deal because it will have a
negative impact on the employment. However, the government of the UK encourages
and ensures that the trade agreement will contain the safety and the protection of the UK
farmers as well as many British products will become cheaper. In simple words the trade
deal with the Australia is not good and successful from the point of the farmers as well
as the citizens of the UK.
Considering the key drivers for the success of international trade
There are many key drivers that have played an important or the significant role in the
success or the growth of the international business. Some of the key drivers are as follows-
 Communication – One of the most important driver for the development of the trade
globally is the communication (Şenol and ZEREN, 2020). As the effective and clear
communication can be able to solve and resolve many problems and the confusions
regarding the trade agreement between the countries. Proper and good communication

also facilitates the customers in order to get the adequate information about the products
and services easily.
 Technology – In this new era of digitalization and the globalization of various activities
as well as the business technology plays a vital role and also act as the main or the
principle driver of international trade. Use of new and advanced technologies narrows
the communication gap between the countries across the world. It also helps in providing
the availability of human resources and reduces the errors made by humans. Now a days
the American companies are dependent on Indian companies for the availability of the
software products.
 Emerging Markets – For the purpose of the easy and cheap trade the barriers are
reduced by the developing countries like India, Azerbaijan, Brazil, etc. instead of the
developed countries like New Zealand, Singapore, Norway, Switzerland, UK, etc. These
markets provides the huge and wide range of businesses in terms of potential and the
scope of the trade (Sepashvili, 2020). Many manufacturers grab the new opportunities
that are provided by the emerging markets. For example: The manufactures of car such
as Suzuki, Toyota, Mercedes, etc. set their production in India (Drivers of International
Business, 2019).
 Increased profit percentage – With the help of foreign markets and the international
trade there is the possibilities of earning high rates of profits as the main aim of every
business is to earn profits. When the countries are not able to achieve the profit margins
from the domestic markets they have to move or search for the other foreign markets. So,
in order to increase the profits of the business many countries tries to expand their
business operations in other countries. For e.g. The Hewlett Packard , USA more profits
from the foreign markets instead of its own market (Introduction, Drivers and Benefits of
International Business, 2017).
 Political stability – The UK, France, USA, Germany , Japan , etc. are the politically
stable countries of the world that means they are continuing the same government
policies from a very long period of time. Most of the business organizations want to deal
or prefer to enter their trades in the politically stable countries so that they can easily
expand their business and can be able to earn more profits from these countries. On the
other hand many firms shift their business operations and activities from the unstable

countries to the stable countries after examine or analysing the facts that there are more
and more scope of the business success in the politically stable countries.
 Global Marketplace – This is also one of the essential and important key driver of the
international business as the countries are having the different or various marketplaces
across the whole world. After the adaption of the new and advanced technologies that
facilitates the social media and the internet as well as the e-business makes the
international trade easier and smooth (Shavshukov and Zhuravleva, 2020). It has been
analysed that a company must have the quality products or goods along with the proper
and right strategies in order to establish the business globally or internationally. A
company must also be prepared to take the risks at the global marketplace and must
analyse the market properly before investing.
 Globalization and Liberalization – In the today's world of modernization many
countries tries to liberalize their economies and also welcomes the other countries from
the rest of the world with open hands in order to expand and establish their business
worldwide or globally. These changes in the policies of the trade motivates and attracts
many multinational companies to increase the size and the area of their business
operations in the other countries. So, this will help or assist the international trade or the
businesses to achieve the growth as well as success.
Evaluation of the trade deals that effect both UK and International Economies
Effect of UK- New Zealand deal: Effect of the deal between United Kingdom and New Zealand
of free trade. It impacted the trade of the united kingdom in various ways along with the impact
the international trade. It reduced the barriers in the export of the products or services inside the
boundaries of New Zealand (Federico, Alex and Magdalena, 2020). The impact of international
trad was that the global economy began to rise as organization started to trade in New Zealand.
The advantage of this deal lead to the better relationship of the United Kingdom with foreign
country. It created new opportunity to grow business in both countries. It also promotes the
sustainable development and inclusive trade objectives to enable the benefit of trade to reach all
communities in New Zealand. However, in a critical evaluation, the drawback of UK- New
Zealand deal is that the trade agreements is expected to bring income gains in both countries, it
may create negative impact to the existing countries in the United Kingdom as the competition

will rise and the increase in import will lead to the decrease in the economy position of United
Kingdom.
Effect of UK- EU trade deal: The agreement signed between United Kingdom and European
union created a wide range of impact on the trading of United Kingdom and European Union. It
helps the country to recover the damage on the economy caused by the impact of Brexit (Wenz
and et.al., 2020). The impact on international trade was that it allows many countries to improve
their trade with the agreement between EU and UK. The major advantage of this deal wad that
countries again started to trade with minimum barriers and it helps the countries to improve their
economy that was effect the impact of Brexit. However, it can be critically evaluated that the
trading will not remain the same as the demand of foreign products has been decreased due to the
increased cost of the products. The trading between the countries will not benefit much to the
countries. Another disadvantage is that it increased the cost of trading that will affect negatively
to economy of United Kingdom.
Effect of UK- Australia deal: Deal that is to be signed between United Kingdom and Australia
in order to gain benefit from the international trade between the countries. It will impact the
economy of the country in terms of agriculture deficit (Byrne and et.al., 2020). The international
trade maybe affected due to this deal as people of United Kingdom are not ready to trade with
Australia. The advantage of this deal will improve the market access for goods and services, an
FTA will give Australian exporters a competitive edge when entering market of United
Kingdom. However, in a critical evaluation the major disadvantage of this trade deal is that will
impact the employment in the country protesting people have their reasons to not to trade with
the particular country because the people o the country will have to suffer due to this deal.
CONCLUSION
From the above report, it can be concluded that global economy means the globalization
of the activities of the trade with different countries all over the world. UK's trade pattern and its
import, export, services and the product activities with the rest of the world. However, it can also
be concluded that there are some key drivers such as communication, technology, global
marketplace, etc. that have played the most important role in the development, the growth and
the success of the international trade. The trade deals of the United Kingdom and the impact of
these deals on the international business or the trade. On the other hand by evaluating and by
analysing the trade deals it can be concluded that there can be positive as well as negative effect
of these deals on UK and the international economies.

REFERENCES
Books and journal
Beliz, G. and et.al., 2019. Harnessing the opportunities of inclusive technologies in a global
economy. Economics. 13(1).
Byrne, P., and et.al., 2020. UK deal over inclisiran.
Federico, G., Alex, D. and Magdalena, M., 2020. Can Greater Levels of Cooperation Help to
Improve Productivity and Resilience in UK Agriculture Post Brexit Drawing
Comparisons with the New Zealand Dairy Industry Experience?. INTERNATIONAL
JOURNAL OF ACADEMIC RESEARCH IN BUSINESS AND SOCIAL
SCIENCES, 10(2).
Kang, W., Ratti, R.A. and Vespignani, J., 2020. Impact of global uncertainty on the global
economy and large developed and developing economies. Applied Economics. 52(22).
pp.2392-2407.
Maffioli, E.M., 2020. How is the world responding to the novel coronavirus disease (COVID-19)
compared with the 2014 West African Ebola epidemic? The importance of China as a
player in the global economy. The American Journal of Tropical Medicine and Hygiene.
102(5). p.924.
Pagliaro, M., 2020. Italy's nutraceutical industry: a process and bioeconomy perspective into a
key area of the global economy. Biofuels, Bioproducts and Biorefining. 14(2). pp.180-
186.
Şenol, Z. and ZEREN, F., 2020. Coronavirus (COVID-19) and stock markets: The effects of the
pandemic on the global economy. Avrasya Sosyal ve Ekonomi Araştırmaları Dergisi.
7(4). pp.1-16.
Sepashvili, E., 2020. Supporting Digitalization: Key Goal for National Competitiveness in
Digital Global Economy. Economia Aziendale Online-. 11(2). pp.191-198.
Shavshukov, V.M. and Zhuravleva, N.A., 2020. Global Economy: New Risks and Leadership
Problems. International Journal of Financial Studies. 8(1). p.7.
Wenz, L., and et.al., 2020. Post-Brexit no-trade-deal scenario: Short-term consumer benefit at
the expense of long-term economic development. PloS one, 15(9), p.e0237500.
Online References
Brexit: What trade deals has the UK done so far, 2021. [Online]. Available through
<https://www.bbc.com/news/uk-47213842>
Drivers of International Business, 2019. [Online]. Available through
<https://thefactfactor.com/facts/management/international-business/drivers-of-
international-business/1586/>
Geographical pattern of UK trade, 2020. [Online]. Available through
<https://commonslibrary.parliament.uk/research-briefings/cbp-7593/>
Introduction, Drivers and Benefits of International Business, 2017. [Online]. Available through
<https://enterslice.com/learning/benefits-international-business/>
EU-Australia-New Zealand trade deals have promise, 2018. [Online]. Available through
<[Online]. Available through>
1

APPENDIX
2
Illustration 1: UK trade with EU and non- EU countries, 2019

Source: House of Commons Library
3
Illustration 2: share of UK trade with the EU, 1999

Source:EU-Australia-New Zealand trade deals have promise, 2018.
4
Illustration 3: EU- Australia- New Zealand trade deals

5
Illustration 4: UK- Australia trade deal