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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You can find more about this topic by visiting BBC Bitesize - Economic development issues
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
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It is also sometimes referred to as the balance of international payments
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Other phrases you may hear that mean the same are 'negative balance', 'unfavourable balance' and 'trade gap'
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Importing the machinery from MEDCs is expensive and setting up the infrastructure takes time
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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
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Long-term aid and development aid are the same
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The conditions of aid like this normally benefits the government of the MEDC rather than the country receiving the aid
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Aid is usually given for the right reasons but can sometimes bring unexpected outcomes which can be used to argue against helping LEDCs
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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
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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
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