Fair trade

Question 1

Difference of trade Britian vs Malawi

Answer 1

B- $834 billion
M- $1.3 billion

Question 2

Why uk trade higher?

Answer 2

-More manufactered products vs m’s raw materials
-Worth more e.g services

Question 3

Where can countries trade freely?

Answer 3

-Within a trade bloc (e.g EU)
-No tarrifs

Question 4

How free trade bad?

Answer 4

-Influx of cheap products sourced elswhere
-Decrease buying locally/ money within country

Question 5

How free trade controlled?

Answer 5

-Quotas- annual import restriction
-Import Duty/ Tariff- tax on imports
-Subsides- Goods at lower prices 9gov gives money to aid them)

Question 6

How is fair trade prevented?

Answer 6

World trade organisation:
-No farming subsides (Despite EU and USA paying them)
-Ghana tomatoes + rice more expensive than EU (harder to sell)

Question 7

Farming in Africa?

Answer 7

-Small subsistence plots (little trade, mostly consume)
-Smallholdings (90% Cocoa) under 3 hectres
-Monoculture plantations e.g Malawi tea

Question 8

What controls commodities prices?

Tea, chocolate, coffee

Answer 8

-Supply and demand
-London stock exchange buys from cheapest sellers
-Pressures prices unfairly downwards

compete for cheaper prices

Question 9

When cocoa beans price high?

Answer 9

-2010
-Bad harvest, low supply