Trade, Fairtrade And Aid Flashcards
What is the definition of trade
Buying and selling of goods and services we want to trade. Trade involves the exchange of goods and services in return for other goods or services or money
What do import and export mean
Import- goods that come in to a country
Export- goods that leave a country
Where are primary products made
LEDCs
Where are manufactured goods made
MEDCs
What does fair trade mean
• A fair price for skill and effort
• Payment in full and on time - often in advance
• Safeguarding the health and education of children
• Concern for the environment
• Good working hours and conditions
• Employment that gives dignity
8 benefits of fair trade
- Guarantees farmers a minimum price
- Farmers can provide for the basic needs of their family (less vulnerable to poverty)
- Improves access to services for farmers e.g training
- Provides standards which encourage environmental protection
- Minimises or eradicates use of toxic pesticides
- Provides access to finance to support farmers and improve the environment
- Supports workers by improving their rights and terms & conditions of work
- Brings the coffee directly to consumers and so cuts out some of the costs of the middlemen
What is short-term emergency aid
Provides immediate support during or after a disaster such as famine or a tsunami. It includes food, medicines and tents
What is long-term aid
Such as education for young people, is a continuous programme which aims to provide standards of living
What is bilateral aid
- Aid given directly from one country to another. There are normally conditions attached, so this type of aid is often called ‘tied aid’
- For example, an LEDC might have to buy goods from the donor country in return
What is multilateral aid
- Aid that is given through international organisations such as the Word Bank, rather than by one specific country. Countries will donate money to the organisation and the organisation will then decide who gets what
- One problem is that it can take time and effort to reach an agreement that everyone is happy with
What is charitable aid
- Aid funded by donations from the public through charitable organisations such as Oxfam. These charities aim to help people in LEDCs help themselves
- They invest in the skills and knowledge of local people and combine that with technology to create a sustainable environment
- This is often a long-term, sustainable form of aid
3 advantages of aid
- Emergency aid in times of disaster saves lives
- Aid helps rebuild livelihoods and housing after a disaster
- Aid for agriculture can help increase food production and so improve the quality and quantity of food available
3 disadvantages of aid
- Aid may not reach the people who need it most. Corruption may lead to local politicians using aid for their own means
- Sometimes projects do not benefit smaller farmers and projects are often large scale
- Aid can increase dependency of LEDCs on donor countries. Sometimes aid is not a gift, but a loan, and poor countries may struggle to pay
