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Trade and Aid

Trade and aid connect countries across the globe. This quiz looks at who trades, why aid is given, and how schemes like fair trade aim to reduce inequality.

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Fascinating Fact:

Fair trade schemes try to give producers in low income countries a better price and working conditions, linking ideas about trade, aid, and global justice.

In GCSE Geography, trade and aid are studied as key parts of globalisation and development. You learn how goods and services move between countries, how different types of aid are used to support people in low income nations, and how trade patterns and fair trade schemes can affect economic growth, working conditions, and quality of life.

Key Terms

Trade: The buying and selling of goods and services between individuals, regions, or countries.
Aid: Help given from one country or organisation to another, often as money, goods, or skills.
Fair trade: A trading partnership that aims to give producers a fair price and improve their working conditions.

Frequently Asked Questions (Click to see answers)

What is trade and aid in GCSE Geography?

In GCSE Geography, trade and aid describe how countries exchange goods and services and how richer nations or organisations support poorer ones through money, projects, or expertise.

What is the difference between trade and aid?

Trade is a two-way exchange where goods and services are bought and sold, usually for profit. Aid is help given, often from richer to poorer areas, without expecting direct payment back.

How does fair trade help people in poorer countries?

Fair trade can increase producers’ incomes, provide more stable contracts, and support community projects. This can improve access to education, healthcare, and basic services in poorer areas.

Try These Related Quizzes

1 .

The difference between the money gained from exports and the money spent on imports is called:

the balance of trade

the balance of payments

the balance of money

the trading economy balance

It is also sometimes referred to as the balance of international payments

2 .

What form does aid take?

Money only

Materials only

Skilled people and training of local people

All of the above

Aid can take many forms, depending on why it has been given. Emergency aid for example is often sending food, shelter, medical supplies and specialist rescue workers to support an LEDC after a natural disaster like a hurricane or tsunami has happened whereas multilateral aid is usually a sum of money given to support a specific project

3 .

Aid sent to a country following a major earthquake is described as being:

charity aid

long-term aid

short-term aid

development aid

Long-term aid and development aid are the same

4 .

Some people think that giving aid to poorer countries is not a good idea. Which of the following is NOT an argument against giving aid?

Some aid is a loan and not a gift, poor countries may struggle to repay it

Corruption may lead to the aid being used by local politicians for their own use and does not reach the people for whom it is intended

Aid for agriculture is often used for large scale projects and so the smaller, more needy farmers do not benefit

It can be used to improve health and standards of living

Aid is usually given for the right reasons but can sometimes bring unexpected outcomes which can be used to argue against helping LEDCs

5 .

If a country spends more on imports than it gains from export, it has a:

trade scales

trade balance

trade surplus

trade deficit

Other phrases you may hear that mean the same are 'negative balance', 'unfavourable balance' and 'trade gap'

6 .

Fair trade products are becoming more widespread and include beverages, textiles, craft items and chocolate. Fair trade agreements ensure that the producer (or employees of the producer) receive:

a very large salary for the work they do

free food in exchange for their labour

a guaranteed and fair price for their product regardless of its price on the world market

a great deal of praise from their governments

A fair trade agreement requires employers to set minimum standards for the pay and conditions of their workers in order to give them a better standard of living

7 .

Which of the following satements about international trade is correct?

MEDCs usually import primary products and export manufactured goods

MEDCs usually import manufactured goods and export primary products

MEDCs import very few products as they are self-sufficient

Primary products come only from LEDCs

Many MEDCs export primary products, for example, a large proportion of the Australian economy is based on the export of primary products like iron ore, wool and coal

8 .

In the 1990s, the British government gave Malaysia a large sum of money to help them to develop a hydroelectric power scheme. In return, it demanded that Malaysia bought military supplies and weapons from the UK. What is this type of aid called?

Emergency aid

Conditional aid

Mutual aid

Charitable long-term aid

The conditions of aid like this normally benefits the government of the MEDC rather than the country receiving the aid

9 .

If poorer countries could process their raw materials into manufactured products, they could make more money from exports, so why does this not happen on a large scale?

There is no local workforce

Setting up to do this on a large scale takes a long time and money

The governments of LEDCs do not know how to do this

Local people campaign against it because they are worried about polluting the environment

Importing the machinery from MEDCs is expensive and setting up the infrastructure takes time

10 .

Multilateral aid is given through:

the World Health Organisation only

the World Bank only

both the World bank and the World Health Organisation

OXFAM and other charities like Save the Children

The governments of many MEDCs donate some of their income to international organisations like the World Bank and World Health Organisation who then decide where aid should be given and how much. It is called multilateral because the money comes from several different countries

You can find more about this topic by visiting BBC Bitesize - Economic development issues

Author: Kev Woodward (PGCE, Science & Chemistry Teacher, Quiz Writer)