Population factors in trade
Topic: International Trade: Patterns, Ports and the WTO · NCERT: Class 12, Ch 8 "International Trade"
Meaning
Population factors in trade are a basis of international trade. The size, spread and culture of a people shape what they make and what they buy. Some cultures produce prized crafts, such as Chinese porcelain and brocades, Iranian carpets, North African leather and Indonesian batik. Densely populated countries trade mostly at home, because their own people use most of what they produce. Living standards decide demand: richer people buy more costly imported goods.
Example
Indonesian batik is cloth patterned by hand with wax and dye, a skill from the island of Java. It is sold in many countries because buyers value this craft.
Don't confuse with
- Difference in national resources: that basis comes from nature, such as geology and climate. Population factors come from people, such as their numbers, skills, culture and wealth.
Related concepts
- Basis of international trade
- Difference in national resources
- Stage of economic development and trade
- Foreign investment and trade