Fair Trade Questions

Question 1

Why do we trade?

Answer 1

It allows people to gain and access resources that they can’t produce themselves; people are more interdependent and often specialise in one particular area

Question 2

What are three positives of trade?

Answer 2

1. People were able to obtain goods they couldn’t produce themselves
2. New goods and technologies were introduced to different nations
3. Religions and traditions spread

Question 3

What are three negatives of trade?

Answer 3

1. Harsh climatic conditions made it difficult to transport goods
2. Transportation was limited to pack animals
3. Camel caravan could take over 6 months to reach it’s destination

Question 4

What are the three different sectors of an economy?

Answer 4

Primary, secondary, and tertiary sectors

Question 5

What is trade between two traders called?

Answer 5

Bilateral trade

Question 6

What is trade between more than two traders called?

Answer 6

Multilateral trade

Question 7

What are seven main producing countries?

Answer 7

Ivory coast, Ghana, Indonesia, Nigeria, Brazil, Cameroon, Ecuador

Question 8

Why is it dangerous for a country to rely on cash crops?

Answer 8

If the product loses value or is impacted by disease or natural disasters, the country will lose a lot of money

Question 9

What are four advantages of a co-operative?

Answer 9

1. helps farmers to work together and compete in a market
2. they are given more control over the crops and price they are paid
3. power in numbers
4. work to improve community services

Question 10

What are two disadvantages of a co-operative?

Answer 10

1. If the crop fails, everyone would go out of business

2. Harder to make decisions as not everyone will agree