UK Trade Analysis: Patterns, Deals, and Impact on Global Economies

This report analyzes the trade patterns of the UK and its trade relationships with the rest of the world, focusing on trade deals signed by the UK with countries like Australia, Norway, and New Zealand. It evaluates the effects of these trade deals on both the UK and international economies, highlighting key drivers such as globalization, collaboration, technological innovation, electronic funds transfer, and customer demand that play a crucial role in the success of international trade. The report further discusses the positive impacts of trade deals, including increased business opportunities, reduced tariff barriers, and enhanced economic growth, while also emphasizing the importance of sustainable practices and technological advancements in fostering a competitive global market.

Global Economy

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
REFERENCES................................................................................................................................1

INTRODUCTION
Global economy is termed to economic interdependence formed among most of influential
nations which drives worldwide economic environment (Johnes, 2019). It is aggregation of
economic outputs, influences along with movement of all countries. It helps nations to specialise
in offerings among nations and helped countries to achieve competitive advantage in. it provides
linkage among regions along with nations of the globe in system of economic relationships. This
type of relationship comprises exchange of products, exchange variant nation’s currencies,
financial flows across borders together with movement of human capital in search for better
living standards. Economy of a nation, for example, UK is a highly developed market oriented
economy.
The report highlights trade patterns in UK and overview of trade of UK with rest of globe. It
further includes discussion of some trade deals that are signed by UK with rest of world and their
impacts on trade. It further evaluates effects which trade deals have on economy of UK and
International world.
MAIN BODY
Analysis of trade patterns of UK and overview of UK trade with rest of world
Trade is exchange of commodities and services among countries. Trade pattern is said to
long range direction of security or product future prices, charted through drawing one line which
connects highest price security has reached as well as another line which connects lower prices
wherein security has traded over similar time period (Pollard, 2021). In UK, trade patterns
evolve over time as the country develops as well as build new comparative benefits in goods and
services.
Figure 1: UK trade in Goods and Services by Area. 2021
(Source: UK trade in Goods and Services by Area. 2021)
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From the mentioned statistical image, it is determined that geographical pattern of trade was
adopted in UK in which majority of trade of United Kingdom was conducted with Europe which
accounts to nearby 51% of overall exports and 59% of imports of UK (UK trade in Goods and
Services by Area, 2021). In the trade pattern, Asia accounted for approximate 20% of exports and
23% of imports of UK. Looking at individual countries, United States is largest trading partner
of UK as in the year 2021, UK exported around £ 126 Billion of products and services to United
States along with 21% of all exports. However, trade with some regions was affected by
downturn in trade in yea 2020 than others. Correspondingly, greatest fall in trade of UK was with
Africa as value of UK exports to Africa fell by 20% while value of imports fell by 29%.
Some of trade deals which UK has signed with rest of world and its impact on trade
There are ample number of deals that UK has signed with rest of world. Mentioned below
are some deals and their impact on trade:
Free trade deal with Australia: United Kingdom has signed a free deal with Australia that
benefits consumers and businesses (Brexit: UK signs free trade deal with Australia, 2021).
During first post Brexit deal negotiated from scratch as well as not rolled over from trade terms
which UK enjoyed while in European Union (Tassinari and Maccarrone, 2018). It was estimated
by government that the trade deal would unlock £10.4 Billion of additional trade while ending
tariff on all exports of UK. The deal was gateway into fast growing Indo-Pacific regions as well
as is expected to boost UK’s bid for joining Trans-Pacific Partnership which was one of free
trade areas in world. For the countries, the deal eliminates tariffs from 99% of exports addition to
make it easier for Australian to live together with work in UK. The deal impacted positively on
trade as it encourages trade of goods and services by making it cheaper. This is achieved through
eliminating or reducing tariffs, in forms of taxes or charges by governments for performing trade
across borders. It permitted small-medium-sized ventures to work and travel in other nations to
generate employment.
UK-Norway deal: In this deal, food producers, exporters along with service ventures to
UK enjoyed boost as new UK-Norway trading agreement came into effect on December 01,
2021 (Page-Tickell and Yerby, 2020). It followed a joint deal signed with Norway, Liechtenstein
together with Iceland that brought UK and Norway closer than before through creating new
services addition to investment relationship with exclusively duty free quotas and lower tariffs
for exporters of UK. The firms of British which were looking for establishments or expansion of
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operations are able to transfer staff in addition to their families. The deal provides assistance to
booming FinTech sector of UK which impact positively on trade among both countries for
services without providing them elsewhere prior hand. Moreover, the deal impacts favourably on
movement of electronic documents, signatures along with contract mean products seamlessly
across borders that saved time and money of exporters of both nations (UK-Norway deal. 2021).
Historic trade deal with New Zealand: The aim of trade deal was to boost exports and
provide ample opportunities for entrepreneurs of UK to establish ventures to perform trading in
New Zealand (Montgomery and Baglioni, 2020). UK-New Zealand deal was worth to £2.3
billion and set to grow the country. It impacted positively on trade because of removal of barriers
and deepen access for resources that make it easier for businesses of United Kingdom to break
into market of New Zealand. Furthermore, workers of UK were more benefited from the deal as
it resulted in improvising business travel arrangement along with professionals to work easily
and bringing talent contributing in improving economies. The trade deal signed by UK involved
ground breaking environment which reinforces commitments and efforts of New Zealand for
meeting net zero. It encouraged trade as well as investment in low carbon products, services and
technology.
Key drivers which plays important role in success of international trade
Some of the key drivers that plays an important role in succession of international trade are as
follows:
Globalisation – It helps the companies to find lower–cost ways to produce their products
(Kelton, 2020). Through increase in UK competition it helps the firm to drive their prices down
and creates the large variety of choices for customers. Because of combination of advance
communication technologies, increase capital flow and decrease in trade barriers by international
government. It improves the transmission enables goods to be transported freely around the
world. It helps UK to interconnect with other countries which result to increase dealing and
culture exchange which leads to increase in the production of goods and services and that reflects
to the employment rate of the country. Thus, both the customers and organisation can now select
from a wider range of products and facilities.
Collaboration - For success in international business its important to work well with
others (Lepanjuuri, Wishart and Cornick, 2018). When UK collaborating with other cultures is
beneficial, it helps the country to develop cross culture communication skills. And it also helps
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in gaining new perspective and ways to addressing difficult business problems. When country
collaborate with other countries then its market value is also going to increase and UK is one of
the best country related to trade so more company wants to do international business with them.
Technological innovation – The global organisation planning become more successful
with the integration of automation (Sukhodolov, Popkova and Litvinova, 2018). In UK it helps to
improve the global communication and transportation. By increase in great influencers or factors
affecting international business and helps to rise the country national income and total gains from
trades. By growing of innovation technology it brings more productivity and better goods and
services which improves the standard of living. It derives productive growth and global market
competition and define worldwide value chains. It generates new business and create the nature
of international rivalry and trade.
Electronic funds transfer – It makes the transaction fast and much work is not required
at end of the transaction (Lemprière and Lowndes, 2019). It moves the money across online
network or large number of invoices and digital payments are taking place over digital networks.
UK has effected by that electronic fund transfer method it contact the growth of global business
and also aid in banking systems, which accepts the digital motion of funds.
Customer demand – Without customers demand there would be no sale and no profit it
leads to the greater the demand, increase the revenue of the country (Lamb and Minx, 2020). It
refers to the economic measures of group desire for a product or service based on accessibility.
Their demands are depends on so many factors like, price of goods, quality along with income.
UK international brands are established by the big business house in distinct countries are
running globally. Like business processing units, it is run by the support agents setting in one
country and buyer purchase from other country. All the e-commerce websites are running due to
customers demand. This is one of the factor which is affecting the international business.
Evaluation of effect which trade deals have had on UK and International economies
Some of the impacts of trade deals on UK on other economies are mentioned below: Free trade deal with Australia helps UK in levelling up of their economic trends
adversely. This arrangement has opened up new opportunities for UK's businesses in
establishing their stores and selling their goods to Australian citizens (Hodgson, 2021).
All the big business giants of UK are setting up varied plans as well as introducing new
marketing strategies in order to attract a new and untapped customer market. This
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agreement not only helps in opening up of business opportunities in Australia but also
helps in doing commerce with other countries. This practice reduces imports and exports
barriers around UK. It also helps in opening ways for unemployed citizens of boot the
countries. This has reduced tariff barriers on varied products like whiskey, biscuits and
gin exports to Australia as it is the eighth largest market in world. It also allows import of
differential raw materials to UK companies in order to be more competitive and flexible
in their operations. This arrangement aids in improvising the customs which were strict
earlier. It says that some products which are perishable in nature like Scottish Salmon is
given priority to export first. This arrangement helps in making extended relations with
customer of Australia. It also reduces paperwork which is compulsory for exporting their
goods to Australia and like countries. Farmers in UK are also satisfied with this system as
demand of their meat and beef products are increased in European as well as Asian
countries. This also helps in exporting advance technology to Australia and other
different countries as UK is considered as one of the leading nation in developing
advanced technological measures. This commitment helps in combining the efforts of
both countries in maintaining sustainable economy. It opens up the new ways for more
collaborations between UK and Australia for creating and developing more advanced
technology to become powerful countries in world. This arrangement with more countries
other than Australia helps in making businesses more competitive and invite more
investments. This deal also assists businesses in promoting low carbon trade products.
This deal also helps UK's luxury car manufacturer as it is a global leader in this sector. It
can export its luxury and exclusive cars to Australian market to attract customers there
with emergence of less or no tax barriers. It also aids in free flowing of data between two
countries because of reduction in red tape and unnecessary costs. This arrangement also
boosts e-commerce because of simple customs of Australian government. UK-Norway deal impacts citizens and businesses to a large extent. This deal helps UK
citizens in getting more employment (Katz-Rosene and Paterson, 2018). It also aids in
reduction of tariff barriers on varied products and services of UK in Norway. It has
developed extended relationships between UK and Norway. This deal also helps in
saving time and money of companies as it reduces paperwork and other complications in
exports. It also simplifies the procedures of VISA in Norway. Because of this deal, UK
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businessman can go to Norway and expand their business there as they are also provided
with easy accommodations also. This also opens up the doors for collaborations and
providing more sustainable products to both the countries. Fish processing industry of
Scotland also gets impacted because of this deal as they can provide their products to
Norwegian efficiently. Because of this arrangement, there are smooth transition between
UK and Norway through exporting goods and technology. This opens up large
opportunities for businesses to develop in a competitive advantage.
 Historic trade deal with New Zealand impacted small companies to expand their
business in New Zealand because of reduction in red tape and operational costs
(Laamanen, Barros and Islam, 2018). It also makes easy for UK professionals to stay at
New Zealand and earn their livelihood. Small businesses got opportunities to cater the
uncatered customer group. This arrangement had reduced varied regulations and tariff
barriers on clothing, footwear, ships, excavators and many more. This also helps in
providing high quality and variety of products to UK citizens such as Manuka honey,
Kiwi fruits and many more. It opens up the varied doors of employment in both the
countries. It assists UK companies in easing the ways of digital trade. This brings
collaboration between two countries and provides cooperation in meeting global
challenges. This also helps companies of both the countries in bringing innovative ideas
to attract more consumers. This deal can also be threat for domestic market as their
customers will move to other brands. This creates more competition in both the markets.
This practice also helps companies to think more innovative ideas to creating effective
marketing strategies in order to attract and influence more customers towards their brand.
CONCLUSION
From the above stated report, it has been concluded that most influential countries
established economic interdependence to gain profits and competitive advantage. Global
economy is simplified through interconnection of many countries. Globalisation is a practice
which helps companies to deliver and market their products or services to different countries. It
not only delves with products or services but also with information flow and people. There are
many countries which does different trade deals to reduce their tariff barriers and also provides
their citizens with variety of products or services and employment. It is done to simplify trade
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between varies countries. Government and political parties implements varied trade policies to
simplify the business operations of companies.
REFERENCES
Books and Journals:
Hodgson, G. M., 2021. Liberal Solidarity: The Political Economy of Social Democratic
Liberalism. Edward Elgar Publishing.
Johnes, G., 2019. The gig economy in the UK: a regional perspective. Journal of Global
Responsibility.
Katz-Rosene, R. and Paterson, M., 2018. Thinking ecologically about the global political
economy. Routledge.
Kelton, S., 2020. The deficit myth: Modern Monetary Theory and how to build a better economy.
Hachette UK.
Laamanen, M., Barros, M. and Islam, G., 2018. Collective representation on collaborative
economy platforms. In Contemporary collaborative consumption (pp. 35-56). Springer
VS, Wiesbaden.
Lamb, W. F. and Minx, J. C., 2020. The political economy of national climate policy:
Architectures of constraint and a typology of countries. Energy Research & Social
Science. 64. p.101429.
Lemprière, M. and Lowndes, V., 2019. Why did the North East Combined Authority fail to
achieve a devolution deal with the UK government?. Local Economy. 34(2). pp.149-
166.
Lepanjuuri, K., Wishart, R. and Cornick, P., 2018. The characteristics of those in the gig
economy. UK Department for Business, Energy and Industrial Strategy. Accessed. 10.
Montgomery, T. and Baglioni, S., 2020. Defining the gig economy: platform capitalism and the
reinvention of precarious work. International Journal of Sociology and Social Policy.
Page-Tickell, R. and Yerby, E. eds., 2020. Conflict and shifting boundaries in the gig economy:
An interdisciplinary analysis. Emerald Group Publishing.
Pollard, J. S., 2021. Brexit and the wider UK economy. Geoforum. 125. pp.197-198.
Sukhodolov, A., Popkova, E. and Litvinova, T., 2018. Models of Modern Information Economy.
Emerald.
Tassinari, A. and Maccarrone, V., 2018, September. Varieties of unionism meet the platform
economy: a comparison of gig workers’ organizing practices and trade union responses
in Italy and the UK. In Industrial Relations in Europe Conference (IREC) (pp. 10-12).
Online:
Brexit: UK signs free trade deal with Australia. 2021. [Online]. Available through:
<https://www.bbc.com/news/business-59690080>
UK trade in Goods and Services by Area. 2021. [Online]. Available through:
<https://researchbriefings.files.parliament.uk/documents/CBP-7593/CBP-7593.pdf>
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UK-Norway deal. 2021. [Online]. Available through:
<https://www.gov.uk/government/news/uk-norway-deal-comes-into-effect>
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