What Are The Main Features Of International Trade Ap

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What Are The Main Features Of International Trade Ap

  1. 1. How much does the farmer get when you spend £2 on a cup of coffee? <ul><li>Less than 2p </li></ul>
  2. 2. What are the main features of International Trade ?
  3. 3. TRADE How does it work ? <ul><li>No country can provide everything that its people need. </li></ul><ul><li>To provide these needs, a country has to TRADE with other countries. </li></ul><ul><li>Countries buy goods and services that they are either short of, or they can buy more cheaply. </li></ul>
  4. 4. TRADE How does it work ? <ul><li>IMPORTS = goods and services bought by a country from other countries. </li></ul>Goods INTO a country Bought from another.
  5. 5. TRADE How does it work ? <ul><li>To pay for these goods, a country must sell things of which it has a surplus, or which it can produce more cheaply than other countries. </li></ul><ul><li>EXPORTS = goods and services produced by a country and sold to other countries. </li></ul><ul><li>The imports and exports of a country are likely to include raw materials, energy resources and manufactured goods. </li></ul>Goods sold OUT of a country To other countries .
  6. 6. What are the main patterns of world trade ? <ul><li>There is, however, a wide imbalance in the trade between LEDC’s and MEDC’s. </li></ul>IMPORTS Very few EXPORTS Raw materials eg rubber, cotton and cheap foodstuffs eg tea. LEDCs (many were colonies in the nineteenth century). IMPORTS Cheap foodstuffs and raw materials which it processes into manufactured goods. EXPORTS Expensive manufactured goods eg cars, computers MEDCs ( many were colonial powers in the nineteenth century).
  7. 7. What are the problems with world trade ? <ul><li>WORLD TRADE IS NOT SHARED OUT EQUALLY BETWEEN COUNTRIES. </li></ul>Some countries get a large share The North get 80% of world trade The South get 20% !!
  8. 8. What are the problems with world trade ? <ul><li>As trading blocs eg EU try to increase the trade of their member countries, the trade of non-members especially those in developing countries is reduced. </li></ul><ul><li>An UNFAIR SYSTEM ! </li></ul>Other countries are left out.
  9. 9. What are the problems with world trade ? <ul><li>What is FREE TRADE ? ( see booklet) </li></ul><ul><li>In an ideal world, there should be free trade between all countries. </li></ul><ul><li>However, this rarely happens as MEDCs try to control trade and protect their own countries. </li></ul><ul><li>The most common methods of protecting trade are by TARIFFS and QUOTAS . </li></ul><ul><li>(See booklet and fill in table using p261 in KG) </li></ul>
  10. 10. Case study : Trade in the EU <ul><li>The UK is a member of the European Union (EU). </li></ul><ul><li>One of the first aims of the EU was to try and improve trading links between its members. </li></ul><ul><li>This was done by removing CUSTOM DUTIES paid on goods that were moved between EU countries. </li></ul><ul><li>This lowered the prices of goods, making them cheaper and more competitive against goods from non-member countries. </li></ul>What is the EU ? What is good about Being part of it ?
  11. 11. Why is fair trade important ? <ul><li>What is fair trade ? </li></ul><ul><li>FAIR TRADE AIMS TO INCREASE THE % OF MONEY THAT A PRODUCER GETS </li></ul>

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