Trade and Development 02
Fair Trade products are becoming increasingly popular.

Trade and Development 02

This is our second KS3 Geography quiz on trade and development. A successful use of trade can boost a country's development, taking it from LEDC to MEDC. During the nineteenth century, British companies traded with producers of goods throughout the world. Profit was the main concern and the conditions of individuals was not of any concern. Farmers in LEDCs producing coffee or cocoa were paid poorly whilst the businesses that processed and sold their products became rich trans-national companies (TNCs).

Some supermarkets and shops now stock and sell fair trade products. Fair trade products are often more expensive than non-fair trade goods but that higher price ensures that a farmer or a worker in the LEDC has a better standard of living as they are paid fairly for their goods or their labour.

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Some TNCs have been criticised for exploiting cheap labour in LEDCs - in some cases young children work long hours to produce the goods sold on UK high streets. Shoppers are now more aware of this because of TV programmes and news reports, and consumers can influence the behaviour of these companies by buying from other places.

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  1. If a country's imports cost more than its exports it will have a trade what?
    If it continues the country will need to borrow money
  2. Which product is not associated with Fair Trade?
    The plants that are needed for making the other three products are mainly grown in LEDCs
  3. When prices of raw materials go up and down they do what?
    Fluctuations in the price of raw materials can affect the prices of things in the shops
  4. When TNCs make profit from LEDCs where does the money usually go?
    TNCs are usually based in MEDCs
  5. Which group buys from poor people at a fair price?
    Traidcraft was set up in Newcastle-upon-Tyne in 1979. Hundreds of thousands of people around the world are benefitting from fair trade agreements
  6. TNCs are doing more to help countries where they are based mainly due to pressure from what?
    Customers may feel a TNC is exploiting the LEDC and if they feel strongly about the behaviour of the TNC, they can avoid buying its products. If enough people do the same, the managers of the TNC may be pressured into changing how they deal with the workers in an LEDC
  7. Which is not a famous coffee producing country?
    China is a tea-producing country
  8. Limits on imports and exports have what name?
    They can protect a country's industry from foreign competition
  9. Why do some people not buy Fair Trade products?
    The price tries to reflect what everyone in the supply chain deserves
  10. What means 'taking unfair advantage of cheap labour'?
    This is sometimes referred to as slave labour although the workers are not really slaves

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