Trade and Development 01
This KS3 Geography quiz challenges you on trade and development. The development of a country from an LEDC to an MEDC relies on industrialisation. The economy of an LEDC usually relies on agriculture, which is a lot less profitable than trading manufactured goods. In order to increase its economy, a country needs to build up the amount of goods it sells to other countries. These are called exports. If a country exports more than it imports, it is said to have a trade surplus. If the opposite is true, it has a trade deficit. If a country relies on exporting just a few products and the market for those products collapses, it will suffer economically.
A trade tariff is a kind of tax that has to be paid on imports and exports. Countries negotiate to arrange deals on the tariffs for the goods that they sell to each other.
The World Trade Organisation was established in the 1990s in order to help countries to sort out their trade tariffs. That doesn't always ensure that traders in LEDCs get a good price for their products, so some companies in MEDCs put fair trade agreements in place to make sure that it isn't just the government of an LEDC that benefits.
You can play all the teacher-written quizzes on our site for just £9.95 per month. Click the button to sign up or read more.