Fair Trade Flashcards
1
Q
What is free trade?
A
- Is when countries do not charge tarriffs and quotas to restrict trade with each other. This has the ptoentail to benefit the world’s poorest countries and help reduce the development gap.
2
Q
What is fair trade
A
- The financial support from governments to help their farmers. Rich countries can afford to pay subsidies and so their products are cheaper than those produced by poorer countries.
3
Q
List four things trading groups try to do.
A
- It encourages trade between member countries.
- Richer countries cannot shop around for cheaper prices.
- Members can command a greater share of the market.
- Members are able to get higher prices for their goods.
4
Q
Give an example of where free trade is implemented.
A
- Ghana in West Africa is the worlds largest producer of cocoa beans.
- Most of the packaging and processing is done in Europe.
- The EU charges a 7.7 per cent import tariff on cocoa powder.
- 15 per cent on chocolate
5
Q
Fairtrade actual defination
A
-Fairtrade sets standards for trade with poorer countries. IT seeks to reduce the development gap by improving the quality of life or ordinary farmers.
