The imbalance in the pattern of world trade.
Trade
Trade is the exchange of goods, money and services between countries
and regions. The goods made in a region and sold to other places and
known as Exports (they Exit the country or region). The goods bought
into a place from other regions are known as Imports (they come Into the
country or region).
If value of exports for a country or region is greater than its Imports
it will have a trade surplus and will make money. If a region imports
more than it sells then it will have a trade deficit.
Most
MEDCs Import primary products which have low value and export high value
manufactured goods an even higher value services.
Most LEDCs export lower value primary products (such as cocoa, cotton
etc.), this means that they struggle to raise standards of living in
their countries because they do not have much foreign money coming in
from trade. The price of primary goods also varies widely and producers
can lose out massively, so the trade in a sense is unfair.
Below is an image revealing where the money for a banana goes. Do you
think the producer gets a good deal? How do you think the price of a
banana should be distributed?
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