Trade & Fair Trade Flashcards
Why does trade occur?
No country has enough raw materials and manufactured products to be self-sufficient
What is trade?
The exchanging of goods and services between countries
What are some things the UK imports?
Bananas, oil, fish, cotton and rubber
What is the name for countries that trade with others?
Interdependent
What are goods and services bought by countries called?
Imports
What are goods and services sold by countries called?
Exports
What is the difference between a country’s imports and exports known as?
Balance of trade
If a country exports more than it imports, it is said to have a _____
Trade surplus
If a country imports more than it exports, it is said to have a ______
Trade deficit
What does LEDCs stand for?
Less Economically Developed Countries
What does MEDCs stand for?
More Economically Developed Countries
Why is coffee grown in LEDCs?
It needs warmth and moisture
What is coffee in LEDCs?
Cash Crop
Where is most coffee drunk?
MEDCs
Who gets the most money from a cup of coffee?
The roasters & processors in MEDCs
What are the top three coffee growing countries?
1-Brazil
2-Columbia
3-Vietnam
Who gets money from a cup of coffee?
1-Roasters & producers 2-Café 3-LEDC traders/exporters 4-Shippers 5-Growers
What is a primary product?
Unmanufactured products
What is a secondary product?
The final manufactured product
The price of coffee will _______ on the World Market
Fluctuate
What makes the price go up?
High demand & low supply
What makes the price go down?
Low demand & high supply
When was Fair trade set up?
1986
What must a farmer do to receive Fair trade?
Treat his workers well, look after the environment and help develop the area
Why do people buy Fair trade?
They want to help the farmers
