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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?

 

   
     
Think about it
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