Trade & Aid Flashcards
What is aid?
Aid is the voluntary donation of money, goods or knowledge from one country to another. International aid often aims to reduce the development gap.
What are the 3 forms of aid?
- multilateral aid
- bilateral aid
- NGO aid
What is multilateral aid?
Multilateral aid is aid that is provided by “donor” countries and the donations are sent to an aid pot. This aid pot can include donations such as money food, clothes and other things. The pot is controlled by global organisations such as the UN or the IMF and they can control where the resources are sent to; the recipient countries.
What is bilateral aid?
Bilateral aid is the form of aid where donations go straight from the donor country to the recipient country. The downside of this is that the donors country wants something in return which is often a very unfair condition to the recipient country. However, the recipient country is often uneducated and want anything to become developed so they accept these terms. This ends up, a lot of the time, with the recipient country being in debt to the donor country.
What is NGO aid?
NGO aid collect their donations from the public and other voluntary sources. They work in developing countries around the world, working on small project and communities, within these countries to help development and to decrease poverty. NGO aid stands for non-governmental organisations.
What is in an example of an aid project by an NGO?
Practical action
What is trade?
Trade is defined as the action of buying and selling goods and services
How has trade helped South Korea develop?
Trade has helped South Korea to develop rapidly by promoting exports such as manufactured goods like textiles, leather leather wood and paper and electronics. This has helped bring up its GNI per capita.
What is foreign direct investment?
Foreign direct investment is an investment made by a firm or individual in one country into a business in another country
What is the multiplier effect?
A series of causes that reduces the development gap
