A country’s pattern of trade describes the types of goods and services it sells (exports) or buys (imports), and which countries it trades with. This pattern is determined by a country’s natural resources, technology level, and its ability to produce specific goods more efficiently than others, known as comparative advantage.

Key features include:

• Low-income countries usually export raw materials and import finished factory goods.
• High-income countries usually export finished manufactured goods and services and import raw materials.
• It shows a country’s role in the global value chain.
• It changes as a country develops and builds its industry.
• It is affected by government trade rules, currency values, and international agreements.