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 are interdependent countries
Countries that trade with other countries are said to be interdependent. They rely on each other for certain goods
What is balance of trade
The difference 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 are imports
Goods that are bought by one country from other countries
What are Exports
Goods there are sold by one country to other countries
What do MEDCS import
-raw materials
-primary products
What do MEDCS export
-manufactured goods eg cars
-high value
-expensive
What do LEDCS export
-primary products e.g coffee and fruit
-mine raw materials e.g gold and diamonds
-low value
-cheap
What do LEDCS import
Manufactured goods
What does a trade surplus do
Allows a country’s economy to grow
What does a trade deficit do
Makes a country poorer
What is a commodity
A commodity is 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 cash crop is a crop people grow mainly for export. So coffee is also a cash crop
MEDCS Usually export
Manufactured goods
LEDCS usually export
Commodities and cash crops
