Reducing The Gap

Question 1

What is aid

Answer 1

Aid is when a country or non governmental organisation such as Oxfam donates resources to another country to have it develop or improve people’s lives.

Question 2

What types of aid are there

Answer 2

Money (grants or loans)
Emergency supplies (tents, medicines, water, etc)
Food such as rice or wheat, technology (tools or machinery)
Skills (people with special skills such as doctors and engineers)

Question 3

Types of aid

Answer 3

Voluntary
Long term
Short term
Bilateral 
Multilateral 
Tied

Question 4

What is fair trade

Answer 4

Free trade is when countries do not charge tariffs and quotas to restrict trade with each other. This has the potential to benefit the worlds poorest countries and help reduce the development gap.

Question 5

What are the advantages for poor countries in joining a trading group?

Answer 5

It encourages trade between member countries
Richer countries cannot shop around for cheaper prices
Members can command a greater share of the market.
Members are able to get higher prices for goods.