Starter: Trade and Aid definitions.

Imports: Goods that are bought into a country.

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

Exports Goods that are sold out of a country.

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

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

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

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.

Interdependence Developed countries need developing countries to supply them with primary goods to make manufactured goods. Developing countries need manufactured goods from developed countries as they can’t make them themselves. They both need each other to work, so their trade is interdependent.

Task Turn to page 106 of the International issues book and Answer the core (you will need to look at Figure 13.5 on page 108 for Q’5). Look at the case study of Uganda. Complete the Credit questions on page 113.

Tariff 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.

Quota 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.

Interdependence Ghana

Former British colony. Under British rule, cocoa was grown Former British colony. Under British rule, cocoa was grown. The best farmland was used to grow crops rather than food crops. Cocoa is now the main export Price of cocoa varies due to world market. This can spell disaster for Ghana’s economy if the price drops. Money isn’t available to broaden Ghana’s economy

Ghana did have a debt of $2. 4 billion Ghana did have a debt of $2.4 billion. Most of this has now been written off by the G8 countries. However their problems are not over yet! Multinationals that have located in Ghana have a big control over jobs and income. Ghana’s government has its hands tied to some extent.