International Trade Flashcards
What is 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 or services or money.
What does it mean if a country is interdependent
Countries that trade with other countries are said to be interdependent. They rely on eachother for certain goods.
Balance of trade
The difference between imports and exports
Trade deficit
Spending more on imports than is earned on exports
Trade surplus
Earning more on exports than is spent on imports.
Imports
Goods that are bought by one country from other countries
Exports
Goods that are sold by one country to other countries
What does a trade surplus allow
Allows a country’s economy to grow while a trade deficit makes a country poorer.
What do medcs export
Manufactured goods, expensive, high value, e.g. cars
What do medcs import
Raw materials, primary products
What do ledcs import
Manufactured goods
What do ledcs export
Raw materials e.g. gold/diamonds, primary products e.g. bananas, coffee, cheap and low value
Why do MEDCs export more manufactured goods?
They have more money, factories and educated workers. They don’t export cash crops as their climate isn’t suitable.
Why do LEDCs export lots of commodities?
Ledcs export lots of commodities and cash crops as they can’t afford factories with educated workers. They also have a warmer climate therefore you can grow more crops.
Why can it be risky for a country to rely on cash crops
If there is drought, disease or extreme weather it could ruin/wipe out the crops. E.g. if you’re relying on coffee crops and people suddenly stop drinking coffee, you are out of business.
Why is it risky to rely on oil
Relying on a commodity like oil is risky because oil can run out as it is a nonrenewable energy source.
What is a commodity
Something that’s grown, or mined from the earth, and then traded on the world market. So coffee is a commodity.
What is a cash crop
A crop people grow mainly for export. So coffee is also a cash crop.
What are the top 10 coffee growing countries?
Brazil, Colombia, Vietnam, Indonesia, India, Mexico, Guatemala, Peru, Ethiopia, Uganda.
Where is most coffe grown?
Top coffee producing countries are ledcs. South America is the continent that grows the most coffee. Brazil is the country that grows the most.
What % of coffee does Brazil grow?
31.5%
Where are the top coffee consumers?
MEDCs countries in Northern Europe.
Out of the coffee consumers money…
1. How much does the grower get?
2. Who gets paid the most?
3. Where does most of the money end up?
4. Where does most of the hard work happen?
- 2.8%
- The roasters (e.g. Starbucks) and producers.
- In an MEDC.
- In the LEDC who grew the coffee.
Where on a map is coffee grown?
On both sides of the Ecuador between the Tropic of Cancer and the Tropic of Capricorn
Why is coffee grown in the tropics
Coffee trees need a warm climate. Dry weather is best for coffee harvest.
