International Trade and Aid Flashcards
(47 cards)
What is trade
Trade Is the buying and sell 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 is it called when countries rely on one another for certain foods
Interdependent
Balance of trade
The difference between imports and exports
Trade deficit
Spending more on imports than is earned on exports
Trade surplus
Earring 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
How do trade surpluses and deficits affect a country economy
A trade surplus allows the countries economy to grow while trade deficit makes a country poorer
What do MEDCS usually import and export
Import= raw materials and primary products
Export=manufactured goods eg. Cars (usually high value/expensive)
What do LEDCS usually import and export
Import =manufactured goods
Export=primary products eg. coffee, fruit, mine(gold/diamonds) etc (raw materials)
These exports are usually of low value and cheap
Commodity
Something that’s grown or mined from the Earth and then traded on the world market eg. coffee
Cash crop
Is crop people grow mainly for export eg, coffee
Manufactured goods
Good made in factories
Who are the top 3 coffe producers
Brazil(31.5%)
Columbia(11%)
Vietnam(10%)
What sort of things do you need to grow coffee
-warm climate (mainly grown in tropics)
-dry weather for harvest
-think it was first discovered in Ethiopia
-global industry
What are the steps of fair trade
-The foundation buys coffee beans directly from groups of coffee farmers
-it offers them a fair price for the coffee-enough to live on plus profit
-it pays part of the money in advance, before the coffee is harvested so that farmers don’t run short
-it get’s supermarkets to sell the coffee, stamped with fair trade logo
-people who want to help the coffee farmers can but it and they don’t mind that it costs a bit more
What do fair trade farmers offer in return
In return for their business fair trade coffee farmers make some promises. Fir example,r to treat their workers fairly abd ti look after the environment
What are so,e example fair trade items
-chocolate
-flowers
-tea
-coffee
-cotton
-sugar
-vanilla
-bananas
-wine
-almonds
What is aid
Lending assistance to countries or communities who are in need
What can aid be
Aid, assistance or help will normally be financial but I can also take the firm of goods, skills, service and knowledge
Who gives aid
Typically aid is given by wealthier countries or organisations to those who are less developed
Development aid
The primary aim is to create long term sustainable economic growth
Humanitarian aid
The primary aim is to provide emergency relief in times of disaster or crisis