Geography of Pakistan · Trade. The idea in plain words, the rules to remember, the mistake to avoid and a worked example, written and checked by Mega Lecture.
Pakistan trades most with a small group of partners. Link each partner with its goods: oil comes from the Gulf states, machinery from China, palm oil from Malaysia and Indonesia, while textiles go mainly to the USA and Europe.
Trade is made easier by trading blocs, which are groups of countries that lower taxes on each other’s goods, and by good transport and good quality control. It is made harder by trade barriers and by problems at home such as energy shortages.
The exchange rate matters too. When the rupee falls in value, Pakistani goods become cheaper for foreign buyers, but imports such as oil cost more rupees.
Students mix up the effect of a falling rupee. A weaker rupee makes exports cheaper for foreigners and makes imports more expensive in Pakistan, not the reverse.
Answer: Rs 100,000 more, so a falling rupee makes imports dearer.
Type what you are stuck on. The helper finds the explanation, worked examples and the notes to read, free and instant.
← Exports and importsInternal transport →Take a Geography of Pakistan test