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.
[readmore]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.
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You can find more about this topic by visiting BBC Bitesize - Development and globalisation
The opposite is a trade deficit
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It will be vulnerable to problems that may arise with those exports e.g. a fall in market value
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It aims to promote trade and reduce trade barriers
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Primary products are raw materials and food
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For example roads, electricity supply, water supply
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Countries can negotiate special tariffs in order to promote trade between them
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A large company based in more than one country e.g. Nike
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Some businesses in MEDCs see fair trade as being important
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Cocoa beans are the raw material for chocolate
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This is low and not a good example of fair trade!
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