GLOBAL DEVELOPMENT: Trade Flashcards
What is the significance of Trade?
Trade between rich and poor countries is the key to understanding development. Citizens of rich countries have only recently started showing interest in trade issues.
How did Coyle (2001) say Trade has changed since the 50s?
International trade has replaced internal supply of goods at an ever-increasing rate.
How much of Burundi’s national income is from Coffee Production?
70%
How does Trade supply chains effect countries like Burundi?
Their main product isn’t something they need to survive, leaving them at the mercy of trade. The process of trade syphons off the coffee’s value, leaving Burundi with a very small cut.
What is the ‘Supply Chain’ order from Producer to Consumer?
Producer > Buyer > Shipping > Distribution > Seller > Consumer
What are some global trade risks?
- Supply and demand changes price, making income unpredictable
- Competition drives price down (Race to the Bottom)
- Politics and Fashion in rich countries changes demand often
- Poor countries often rely on products that are vulnerable to natural disasters, and producers don;t often have insurance
Modernisation Theorists view of Global Trade
Argue that developing countries need to become more involved in international trade. One of the ways the West developed and the way the rest of the world should too.
Dependency Theorists view of Global Trade
Trade is one way in which the global North ensures exploitation of the global South through neo-colonialism. Rich countries use their dominance in trade to ensure that prices are low and profits will never be sufficient to fund development or to keep people out of poverty.
Neoliberalists view of Global Trade
Free Trade is fundamental. Favour the opening of national markets to international competition; Trade Liberalisation. Ensures that those who can produce goods, where there is a market, will do well.
