1. Geography Reducing Disparities

3. Agenda 1) Benefits of Trade - cartoons 1) Disparities can be lessened – 200 yr video 2) Trading Blocks - ppt 3) Competitive Analysis - video 4) Barriers to Trade - ppt 2) Trade vs Aid - Fish 1) Banana case study - ppt 2) Fair trade – Chocolate video

4. Reducing Disparities  Disparities are not permanent. They can change, suddenly or slowly, due to nature or due to man.  http://youtu.be/jbkSRLYSojo (start @ 30 seconds, 4 minutes) http://youtu.be/jbkSRLYSojo

5. How to Reduce Disparities METHODS  Trade  Market Access  Aid  Debt Relief  Remittances QUESTIONS  Free vs. Fair?  Trade vs. Aid?

6. Language of Trade Trade: The exchange of goods and/or services. The exchange maybe for other goods and/or services but is normally for money. Exports: Goods and/or services produced within a country and then sold overseas. Imports: Goods and/or services purchased overseas and brought into a country. Free trade: When trade is totally free and fair - there are no protectionist policies in place. It is the aim of the WTO to promote free trade around the world. Balance of trade surplus (deficit): When the value of your exports is greater than (less than) the value of your imports. FDI: Foreign direct investment is money invested in a foreign country by TNCs or other countries. Microcredit: Small loans that are given to people that normally struggle to get credit from normal banks. The pioneers of microcredit was Grameen Bank in Bangladesh. For more information see: Alternatives.Alternatives

8. The Players Trading blocks: A group of countries who have joined together to promote trade through relaxed protectionist barriers. Examples of trading blocs include the EU, NAFTA and ASEAN. WTO: The World Trade Organization is aimed at protecting free global trade by requiring members to promote and practice free trade. It replaced GATT in 1995 and has 153 members. TNC: A transnational corporation is a company that operates in multiple countries. (also Multi National Corporation MNC) Fairtrade: The Fairtrade Organization lends its label to companies that treat suppliers, host communities and the environment fairly and sustainably. Free trade zones (Enterprise zones): An area where tariffs and quotas may be waived, taxes lowered, planning relaxed and bureaucracy eased to try and encourage investment and FDI.

10. World Bank  Bretton Woods  2 institutions: International Bank for Reconstruction and Development (IBRD) : reduce poverty in middle-income and creditworthy poorer countries International Development Association (IDA): focuses on the world's poorest countries.  ‘Our mission is to fight poverty with passion and professionalism for lasting results and to help people help themselves and their environment by providing resources, sharing knowledge, building capacity and forging partnerships in the public and private sectors.’  Governance: owned by 187 member countries Egs of projects

11. IMF  187 countries  Washington, DC  Loans committed: US$191 billion  US$121 billion have not yet been drawn  Biggest borrowers: Romania, Hungary, Ukraine IMF’s main goals:  promoting international monetary cooperation;  facilitating the expansion and balanced growth of international trade;  promoting exchange stability;  assisting in the establishment of a multilateral system of payments; and  making resources available (with adequate safeguards) to members experiencing balance of payments difficulties.  (Data from Feb 2010)

12. World trade Organization  Membership – 153 countries  GATT  Negotiations  Aims:  Rules  Trade  Protection

13. Restricting Trade Embargo: The prohibition of trade with a particular country as a way of punishing them or an attempt to force them to change their policies. Sanctions: Sanctions are restrictions placed on a country's trading. Protectionism: Attempts to protect domestic markets by making foreign goods less competitive. Tariffs: Tax/duties placed on imported products to make them more expensive and reduce demand for them. Quotas: A limit placed on foreign goods to reduce the supply of them, therefore forcing the price up reducing the demand for them. Subsidies: Financial help given to companies to lower their production costs.

15. Benefits of Trade  Comparative versus Absolute Advantage  Everyone benefits from free trade  The weakest countries benefit the least from free trade.  Fair trade is a modified form of free trade that protects the disadvantaged.  http://www.youtube.com/watch?v=38hv vAzgXZY (6 minutes, 30 seconds) http://www.youtube.com/watch?v=38hv vAzgXZY

16. Agenda 1) Benefits of Trade - cartoons 1) Disparities can be lessened – 200 yr video 2) Trading Blocks - ppt 3) Competitive Analysis - video 4) Barriers to Trade - ppt 2) Trade vs Aid - Fish 1) Banana case study - ppt 2) Fair trade – Chocolate video

17. What is Fair Trade? Fairtrade is unique because at its heart lies the need of small-scale producers for market access under fair trading conditions. Addresses the problems faced by family-based producers working at the far end of global supply chains over which they have virtually no influence, but in which decisions are made that can affect their whole lives.

18. Free Versus Fair Trade

19. An Evil Ipod?

20. Banana Facts  The banana is the most popular fruit in the world – shoppers spend more than £10 billion a year on the fruit globally  Fairtrade bananas now account for nearly 2% of the total world trade in fresh bananas  Bananas are the world’s fourth most important crop after rice, wheat and maize in terms of ensuring food security in dozens of countries in the developing world  Just 15% of bananas and plantains are traded on the world market, the rest are used for domestic consumption  Production and trade in bananas is dominated (80%) by five companies – Chiquita, Dole, Del Monte, Noboa and Fyffes

21. Show Me The Money! The majority of banana plantation workers do not earn enough to provide for their families – some earn less than £1 a day

22. Where Are Bananas Produced?

23. 80% of Bananas Are Produced by Only 5 Companies

24. Trade Versus Aid

25. Who Gives?

26. Who Gets?

27. Chocolate that makes a difference Theo Chocolate owner Joe Whinney believes that customers will pay more for their candy bars if they know they are investing in improving the lives of cocoa bean harvesters in the Democratic Republic of Congo. Ben Affleck is making the same bet. http://www.cbsnews.com/video/watch/?id =50136247nhttp://www.cbsnews.com/video/watch/?id =50136247n (4 minutes, 15 seconds)