Geography Quiz -
Trade and Development 02 (Answers)
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.
[readmore]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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You can find more about this topic by visiting BBC Bitesize - Development and globalisation
This is sometimes referred to as slave labour although the workers are not really slaves
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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
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The plants that are needed for making the other three products are mainly grown in LEDCs
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The price tries to reflect what everyone in the supply chain deserves
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Fluctuations in the price of raw materials can affect the prices of things in the shops
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TNCs are usually based in MEDCs
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If it continues the country will need to borrow money
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Traidcraft was set up in Newcastle-upon-Tyne in 1979. Hundreds of thousands of people around the world are benefitting from fair trade agreements
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They can protect a country's industry from foreign competition
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China is a tea-producing country
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