Trade and Aid unit

What do we mean by Trade and Aid? Trade: Buying and Selling Commodities Aid: The act of helping someone. In this case it takes place between people and countries.

Trade and Aid unit Take the title: Trade lesson 1. Lesson starter: Try and think of as many different ways that people trade in the world. Discuss with your partner and write down any answers. (2minutes)

Lesson aims: To understand the key terms important to trade. To understand more about international trade.

Why learn about trade? Trade is what drives the world economy. It is the reason that some countries have managed to become extremely rich and better developed. It is also a barrier to development as the way international trade works is unfair and it means that poor countries find it hard to develop. Developing countries lose $1.3 billion every day due to unfair trade rules. Developing countries share of world trade has dropped by 50% since Britain makes more from trade than South Asia and sub-Saharan Africa combined.

Definitions You are to work in groups of 4. You will be given cards with key words and definitions on them. You must match the key words to the definitions.

Definitions Imports: Good that are bought into a country.

Definitions Exports Goods that are sold out of a country.

Definitions Primary goods Examples are sugar cane, wheat, wood, coal.

Definitions Manufactured goods These are good that have to be made. They are not simply there beforehand. Examples would be computers, chairs, T.V’s, processed foods.

Definitions Trade Balance The difference between the value of a country’s exports and it’s imports.

Definitions Trade Surplus If a country receives more money for their exports than they spend on their imports.

Definitions Trade Deficit If a country spends more on it’s imports than it can make on its exports.

Trade DvD: (39) You are going to watch a DvD on international trade. Take any notes that you think are important.

Definitions Quotas: This puts a limit onto the amount of goods that a country is allowed to export. This may be done to protect a countries own companies.

Tariffs: This is adding a tax onto a product when it comes into a country. It makes some goods very expensive when they should be cheap.

Your turn Turn to page 106 of the international issues book. Complete the core questions 3-10.

Trade and Aid unit