Asses why More Economically Developed Countries (MEDCs) dominate global trade

In the answer, you need to include examples spanning - historical, physical, economic, social or political reasons that explain how MEDCs dominate global trade despite the rise of new economies as well as global trade organisationsExample Answer points:First paragraph: MEDCs dominate global trade due to the Mercantilist system (a global system of trade that explains the dominance of some countries due to the goods they export and import) giving them a positive trade balance (they export more goods than they import) which allows their dominanceAn example to support this: the World Bank and IMF imposed structural adjustment plans (SAPs) that force less developed countries to liberalise and open their markets in the argument of encouraging development - but this tends to more predominantly favour the developed nations by giving them open markets to exploit - e.g. in Haiti the US 'dumped' surplus rice from their markets after the country opened its markets to international tradeAnother example: MEDCs impose trade barriers to protect their markets (they charge large amounts of money to countries who wish to export their goods to these nations) such as America imposing a 20% tariff on the import of chocolate from Ghana but 0% on cocoa powder in order to protect its own chocolate productionSecond paragraph: MEDCs have a comparative advantage of capital resources (they have wealth and resources) which allows them to dominate trade and control markets in their favourThis is seen in their predominant roles in the World Bank, IMF and World Trade OrganisationMEDCs are also the origin country of many global brands and transnational corporations - the HQs and decision making is largely located in MEDCs (such as with Apple)Third paragraph: alternative argument (shows balance within the answer) The second wave of globalisation and the rise of emerging economies, such as the BRICS, goes against the argument of MEDCs dominating tradeGood example of this is China: the 2nd largest GDP in the world, due to a global shift in manufacturing to less developed economies. This is as a result of a technological comparative advantage and a resource endowment of cheap labour, raw materials (they have 30% of rare earth minerals) and less strict regulationsConclusion: MEDCs are dominant in trade due to the global trade system (Mercantilism) and the comparative advantage they hold as the origin of many transnational corporations. They have a positive trade balance and a large control over global markets upholding their position within world tradeKey to the answer was the points that support the argument (paragraph one and two) but also the counter-argument (paragraph three) in order to produce a balanced answer. The points span different categories of effect - economic, political, social etc and are all supported with strong examples