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Trade

Trade. Lesson 38 & 39 – pages 38-39. Lesson Aims. To learn about trade. To learn how international trade is controlled by countries. To learn how the rules of international trade are good for rich countries but bad for poor countries. Key Skill = Communication. Activity. Explain the terms:

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Trade

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  1. Trade Lesson 38 & 39 – pages 38-39

  2. Lesson Aims • To learn about trade. • To learn how international trade is controlled by countries. • To learn how the rules of international trade are good for rich countries but bad for poor countries. • Key Skill = Communication

  3. Activity • Explain the terms: • Trade • Imports • Exports • Positive balance of trade • Negative balance of trade. • How do governments control international trade? • Explain the terms: • Tariffs • Quotas • Subsidies.

  4. Activity • Explain why the rules of trade make it difficult for Ugandans to sell exports into an EU country such as the UK. • Explain dumping and why it is bad for a country such as Uganda.

  5. Fairtrade Pages 39-41

  6. Lesson Aims • To learn how trade can be made fairer. • To learn a case study of fairtrade. • To learn how the types of imports and exports affects a country. • Key Skill = Number

  7. Explain the top 3 export countries

  8. How fair is trade? • If Nestlé with 283,000 workers made US$15 billion from trade in 2008 while Uganda with a population of 27.7 million lost US$1.29 billion: • How fair do you think the rules of trade are? • Do you think that the 80 cents per pound of coffee beans paid by Nestlé is enough?

  9. What can you do about it? • You can choose fairtrade label products which come from LEDC’s such as Uganda. • Instead of buying a product such as coffee from Nestlé you can buy a fairtrade brand. • In Mbale, fairtrade coffee comes from Gumutindo and can be bought in the UK from Cafédirect or Oxfam.

  10. Gumutindo Coffee Cooperative • What is fairtrade and how does it work? • What are the benefits of fairtrade for the coffee farmers of Gumutindo – how are the 3034 Gumutindo farmers better off than the 90,000 farmers who sell to Nestlé? • Should the World Trade Organisation set rules that makes all trade fair? Explain your answer.

  11. Gumutindo Coffee Cooperative • What is fairtrade and how does it work? • What are the benefits of fairtrade for the coffee farmers of Gumutindo – how are the 3034 Gumutindo farmers better off than the 90,000 farmers who sell to Nestlé? • Should the World Trade Organisation set rules that makes all trade fair? Explain your answer.

  12. Draw two pie charts to show Uganda’s imports and exports in 2005.

  13. Primary vs. secondary products • Primary products such a coffee and tea are worth far less than secondary products (manufactured). Looking at your two pie charts: • How does this help explain Uganda’s negative balance of trade? • Using this information, how could Uganda improve its balance of trade?

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