1. Use the following key terms to write a paragraph which compares Kenya and Japan’s trade patterns:
Imports
Exports
Trade Balance
Trade Surplus
Trade Deficit

2. Kenya is a poorer country and Japan is a richer one:
Japan exports expensive manufactured goods, like vehicles, and imports cheaper primary products, like raw materials. It has a trade surplus.
Kenya exports cheap primary products, like tea and coffee, but then imports more expensive manufactured goods. It has a trade deficit

3. What does this map tell us about world trade?

4. Tariffs
Read this information and explain how it may limit Ghana’s development:
Ghana exports raw cocoa beans. Most of the processing and packaging is then done in Europe.
In 2007, the EU charged a 7.7% import tariff on cocoa powder and 15% on cocoa containing cocoa butter – but no tariff at all on raw cocoa beans.

5. How can trade be used to reduce the gap in development?
Learning Objectives:
1. Students should understand how trade can be made to reduce global inequalities

6. How can trade be used to reduce the gap in development?
So, we now know how trade can lead to an increase in the inequalities between countries around the world.
However, it can also be used to reduce the gap between countries. This mainly comes in the form of:
Trading groups
Fair Trade

7. Trading Groups
There are countries that have grouped together to increase the amount they trade between them, and the value of their trade.
In your given group use your ipads to research your allocated trading group.
Find out which countries belong to your group and what benefits belonging to that group gives it’s members in terms of trade.

8. Trading Groups EU MERCOSUR Liam Casia Craig Luca Chloe Holly NAFTA
ASEAN (AFTA)
Dan
Jodie
Oscar
James
Lucy B
Alfie EU
MERCOSUR
Robert
Lucy H
Dom
Ethan
Charlotte
Miw
NAFTA
ASEAN (AFTA)
Stuart
Daisy
Harriet
Georgia
Jamie
Myles

9. Trading Groups and Development
Creating formal trading groups means that member countries can cut the tariffs in places between them – making goods cheaper.
But as trading groups like the EU try to increase trade within the group, poorer countries from outside lose out and the development gap widens.
Stick your copy of this map under the heading ‘Trading Groups’
Explain how trading groups can aid the countries within it
Then explain how trading groups aren’t good for poorer countries that aren’t part of the group

10. Fair Trade Watch the talking bananas explain what fair trade is!
Complete the fill in the gaps activity

11. Fair Trade Word Box poorer health centres fair price fall much
quality of life
extra
develop
discriminate
prices
employees
schools
excess
products
safe
price
lose
Fair trade is all about getting a fair _____ for goods produced in _______ countries (e.g. coffee)
Companies who want to sell _______ labelled as ‘fair trade’ have to pay producers a ______ _______
Buyers also pay ______ on top of the fair price to help _________ the area where goods come from, (e.g. to build _______ or ________ __________)
Only producers that treat their _________ well can take part in the scheme. E.g. producers aren’t allowed to ___________ based on sex or race, and employees must have a _____ working environment. This improves the _________ ___ _______ for the employees.
However, producers in a fair trade scheme often produce a lot because of the good _______ – this can cause them to produce too _____. An _______ will make world prices _____ and cause producers who aren’t in a fair trade scheme to _____ out.

12. Fair Trade
Fair trade is all about getting a fair price for goods produced in poorer countries (e.g. coffee)
Companies who want to sell products labelled as ‘fair trade’ have to pay producers a fair price
Buyers also pay extra on top of the fair price to help develop the area where goods come from, (e.g. to build schools or health centres)
Only producers that treat their employees well can take part in the scheme. E.g. producers aren’t allowed to discriminate based on sex or race, and employees must have a safe working environment. This improves the quality of life for the employees.
However, producers in a fair trade scheme often produce a lot because of the good prices – this can cause them to produce too much. An excess will make world prices fall and cause producers who aren’t in a fair trade scheme to lose out.

13. Plenary
Without looking at your notes copy and complete the table to summarise the ways trade blocs and fair trade are able to reduce global inequalities and how they can also cause problems for poorer countries
Trade Blocs
Fair Trade
Reduces Global Inequalities
Worsens Global Inequalities