Trade Flashcards
What is trade?
It is the exchange of goods and services between people or organisations or groups
Why do people need to trade?
Most people cannot make everything they need so they get what they need by trading what they have for what they need.
What was trade like in the past when there was no money?
It was called bartering and it is where people traded goods directly i.e. I gave you some of my oranges for some of your bananas. No money changed hands.
Why did people start using money when trading?
Because bartering worked well when people were trading items or services of the same value but did not work well when the items were not of the same value. Money solved that problem.
What are imports?
Goods that one country buys from another country
What are goods?
Physical things that people grow, mine or make.
What are services?
Things that people with skills do for other people e.g. fix your computer or your toilet!
What are exports?
Goods that one country sells to another country
What does it mean that something has value or is valuable?
Typically it means that something has value that is useful to us in some way. But there is a broader philosophical question of who is determining what is value and valuable.
What types of things do people trade?
Goods
Name the two main types of goods.
1) Raw materials usually come straight from nature and have not been processed or made into anything else e.g. wheat that has not been made into bread, iron that has not been made into steel.
2) Manufactured Goods are made by processing raw materials e.g. wood becomes tables, wheat becomes bread, clay becomes crockery.
What is another name for raw materials?
Primary Products
What is another name for manufactured goods?
Secondary Products
Which of the following items are primary goods? Maize, teaching, shirts, fixing cars, gold, eggs, tinned fish, bread, clay, car, door, frying pan, nursing, coal.
Maize, gold, eggs, clay, coal.
Which of the following items are secondary goods? Maize, teaching, shirts, fixing cars, gold, eggs, tinned fish, bread, clay, car, door, frying pan, nursing, coal.
shirts, tinned fish, bread, car, door, frying pan.
Which of the following items are services? Maize, teaching, shirts, fixing cars, gold, eggs, tinned fish, bread, clay, car, door, frying pan, nursing, coal.
teaching, fixing cars, nursing.
Why are manufactured goods more expensive than raw materials?
1) Manufacturing or processing raw materials adds value to the raw materials because they are made more useful. We pay more for items tat are more useful or valuable to us.
2) Because it costs money to process the raw materials, e.g buying the raw materials, transporting them to the factory, paying salaries to the workers, paying for water, electricity and machines, people sell manufactured goods for more than the original raw materials. People sell goods for more than it cost them to make it in order to make a living.
What is profit?
The difference between what it cost for the goods to be produced or bought and what the goods are sold for.
You make jam using water, sugar and fruit e.g. apricots.
Which are the raw materials and which are the manufactured goods?
Raw Materials: Water, Sugar, Fruit.
Manufactured Good: Jam
What are the raw materials used in making chocolate?
Cacao beans (milk, sugar)
Name two countries and one continent that grows cacao beans.
Ghana, Cote de Ivoire, Africa
What are cacao beans?
The seeds of the cacao tree that grows in tropical rainforests
Name 3 steps in making chocolate
- Pick the Cacao bean pods. Split open the pods and scrap out the pods. Leave the beans out to dry.
- Dried Beans are then packed in sacks and shipped to chocolate factories.
- Beans are roasted and their hard skins are removed. 4. The beans are then ground into a thick paste and sugar and flavouring are added.
- The mixture is heated gently and poured into moulds.
- The cooled chocolate is un-moulded, wrapped and shipped to stores for selling.
Where are most of the chocolate factories in the world?
Europe, England and America
