How does geography affect global trade routes and economies?

Geography plays a crucial role in shaping global trade routes and economies. The location of natural resources, climates, and physical barriers impact transportation methods and costs. Major waterways like the Suez Canal facilitate international shipping, while landlocked countries face challenges in trade.

Key Facts

• Over 90% of global trade is transported by sea.
• The Suez Canal reduces travel distance by 7,000 km for ships between Europe and Asia.
• Geographic proximity to large markets can increase trade volume significantly.
• Infrastructure development is often influenced by geographical features, affecting trade efficiency.

Examples or Use Cases

• The Panama Canal's expansion in 2016 increased shipping capacity, affecting global trade patterns.
• Countries with extensive coastlines, like China and the United States, have higher trade volumes compared to landlocked nations.

FAQs

• How do geographical features impact trade? Geographical features such as mountains, rivers, and seas create natural barriers or pathways that affect trade flows.
• Why is the location important for trade? Proximity to resources, markets, and shipping routes can drastically reduce costs and time for trade.