Trade and development Flashcards
What is international trade?
The exchange of goods and services across a countries borders
Both parties gain from this
What are terms of trade?
The value of a countries exports relative to its imports
Exports/Imports X100
Countries should export more then they import
Name and explain the types of trading relationships?
- Free Trade
- Trade that occurs w/o any restrictions
2.Trade Barriers
To protect businesses from competition, measures have been put into place
Tariffs
-type of tax placed on imported goods which makes goods more expensive than local product
Quotas
-A limit to the imported goods that may enter a country during a fixed period of time
Subsidies
-Payments made by the government to local producers
3.Fair Trade
Trade that supports farmers in developing countries by paying fair prices ,encouraging social & environmental development
What is globalization?
The process whereby the increased flow of goods, services and technology between countries lead to an integrated global economy and society
What are the advantages of Globalization?
Advantages Increase development Technology increase Access to better education Cultural diversity
What are the disadvantages of Globalization?
Brain-drain
Corruption
Sweatshops(poor conditions and poor pay)
Cultural loss
What is aid?
To provide help or to provide some item or advice that will make something easier or solve a problem
Types of Aid?
Foreign aid
-any type of assistance that a country voluntarily transfers to another
Bilateral aid
Tied Aid
Restrictions in place. Country tells you how to use aid
Untied aid
A country given aid w/o restrictions
What is financial aid?
Money transferred from donors to recipients
What is technical aid?
Transfer of knowledge, skills and info for a specific projects to recipients
What is humanitarian aid?
Emergency aid aimed at reducing human suffering
What is conditional aid?
Another name for tied aid ,borrowed on condition
