Trade And Fairtrade

Question 0

Why does trade occur?

Answer 0

Because no one country is rich enough in raw materials and manufactures goods to be self sufficient.

Question 1

What is Trade?

Answer 1

Name given to the exchange of goods and services between countries.

Question 2

Imported goods?

Answer 2

Bananas, chocolate, gold, cars, CDs / DVDs, animals, cotton etc.

Question 3

What is interpendant?

Answer 3

Countries that trade with other countries and rely on each other for certain goods.

Question 4

Imports

Answer 4

Goods and services bought by a country.

Question 5

Exports

Answer 5

Goods and services sold by a country

Question 6

Balance of trade

Answer 6

Difference between a country’s imports and exports.

Question 7

Trade surplus

Answer 7

When a country earns more for its exports than spends on its imports.

Question 8

Trade deficit

Answer 8

When a country spends more on its imports than it earns on its exports.

Question 9

What do lots of LEDCS rely on?

Answer 9

It’s exports of primary products such as coffee beans for its income.

Question 10

Explain primary products

Answer 10

Tend to be low in value and the true value is added when secondary products are produced.

Question 11

How do LEDCS pay for a secondary product?

Answer 11

Need to be exporting a large amount of a primary product.

Question 12

How will the price of coffee fluctuate on the world market?

Answer 12

Depends on supply and demand, if demand is high and supply is low.

Question 13

When was fairtrade created?

Answer 13

1986

Question 14

What was the fairtrade idea?

Answer 14

To give farmers a price that was fair for their products. This price will be higher than the market value.

Question 15

What makes something fairtrade?

Answer 15

The farmer must treat his workers well. 
Good working conditions and good to enviroment. 
Help develop the area. 
Producers earn a living wage. 
Full production cost is paid for.

Question 16

How fairtrade works…

Answer 16

1. Coffee company and group of farmers decide to work together
2. They agree a price for coffee, that covers the cost of growing it and the farmers cost of living plus some extra.
3. Company pays some money in advance, before harvest so farmers don’t run short.
4. Fairtrade foundation has to check the deal, before the company can use the fairtrade logo on its coffee.
5. In the shops the people who want to help the coffee farmers will buy the coffee and they don’t mind that it costs a bit more.

Question 17

Fairtrade results?

Answer 17

Better quality products.  
Safer working conditions. 
Improves loves. 
Builds schools. 
Bonuses
Clean water
Better women's health.