International Trade Flashcards
What is the definition of trade?
Trade is the buying and selling of goods and services we want and need. Trade involves the exchange of goods or services in return for other goods, services or money
Countries that trade with other countries are said to be…
Interdependent on eachother
What is balance of trade?
The difference in between imports and exports
What is trade deficit?
Spending more on imports than is earned on exports
What is trade surplus?
Earning more on exports than is spent on imports
What is imports?
Goods that are bought in by one county from other counties
What are exports?
Goods that are sold from one country to another
What do MEDCs import and export?
Export manufactured high value goods and import raw materials
What do LEDCs import and export?
Import manufactured goods and export raw materials
What is a commodity?
Something that is grown or mined from the earth and then traded on the world’s market
What is a cash crop?
A cash crop is a crop people grow mainly for export
Which country grows the most coffee?
Brazil
What continent produces the most coffee?
South America
Where is coffee mostly grown?
In between the Tropic of Cancer and the Tropic of Capricorn
Which countries drink the most coffee?
MEDCs/Europe
Who gets the smallest percentage of money for the coffee?
The farmer
Who gets the highest percentage of the money for coffee?
The roasters
How does fair trade work?
A coffee company and farmers work together, they agree a fair set price for the coffee, some money is paid in advance. The Fairtrade Foundation approves the deal. Coffee farmers treat their workers fairly.
Name some Fairtrade products
Bananas, Chocolate, Coffee, Cotten, gold, team fruit/vegetables, nuts, spices
