t3 development and trade
TRANSCRIPT
IMPORTS
EXPORTS
$$$ $
Trade surplus – more exports than importsTrade deficit– more imports than exports
MEDC’sTrade
manufactured goods
Sold for more $$$
LEDC’s Trade primary products
Cheap, and price goes up
and down
Some LEDC’s export only one or two goods
They face financial difficulty when…
Supply increases from other LEDC’s
Demand decreases in the MEDC’s
Crops fail or a resource runs
out
Trading blocs increase trade within the bloc
Countries outside the bloc lose out on income
Most trade is within or between the MEDC trading blocs (NAFTA, EFTA)
Free trade is good because…
LEDC’s will earn more money from exports
Countries’ economies will grow and this will reduce poverty
Free trade is bad because…
LEDC’s will import food that will put their own farmers out of work
USA and EU produce so much food that they don’t need to import more of it
Fair trade ensures a ‘fair’
price for producers in
LEDC’s,
i.e. the price is better than what they would get on the world
market.