World trade patterns
Developed and developing countries
The difference between the value of a country's exports and imports is known as the The difference between the value of a country's exports and imports.. If a country's value of exports is greater than its imports, it creates a When a country makes money from the goods it trades., ie the country is making money from trade. If a country's value of exports is less than its imports, it creates a When a country is not making enough money from the goods it trades., ie the country is not making money from trade and is inevitably in debt.
Usually, developed countries have a trade surplus and developing countries have a trade deficit.
Developed countries have a high The amount of wealth or personal comfort that a person or group of people have. and (usually) a large Measures the wealth or income of a country. It is the total value of goods and services produced by a country in a year. or Gross Domestic Product - the total The customers who buy goods and services. value of all goods and services produced in a country in a given year. Developing countries have a low standard of living and (usually) a much lower GDP.
In general, developed countries export valuable manufactured goods such as electronics and cars and import cheaper Resources that are extracted from the natural environment, eg gold, fish or trees. such as tea and coffee. In developing countries the opposite is true. This means that added to their existing debts, it gives them little What money can actually buy in different countries. and they remain in A state in which someone is poor, either relatively or absolutely..
The price of primary products fluctuates on the Countries across the globe that are able to buy resources. which means that workers and People who grow or make things e.g. food. in developing countries lose out when the price drops. The price of manufactured goods is steadier which means that developed countries always benefit.
A trade surplus allows a country's economy to grow, while a trade deficit makes a country poorer. Increasing trade and reducing their balance of trade deficit is essential for the The process of a country becoming richer or having better healthcare and education. of a country. However, sometimes developed countries impose A tax added to the cost of imports. and A limit on the amount of imports allowed into a country.. Tariffs are taxes imposed on imports, which make foreign goods more expensive to the consumer. Quotas are limits on the amount of goods imported and usually work in favour of developed countries.
Refers to the fact that all organisms that live in an ecosystem depend upon each other, for food, protection, shelter, etc, in order to survive. between countries means that they are dependent on one another in some way. For example, many developing countries are dependent on developed countries for manufactured goods or The giving of resources or money from one country or donor to another.. Developed countries are dependent on developing countries for primary products, eg bananas.
The business of providing holidays for people travelling for pleasure. These travellers are called tourists. travelling to developing countries can also provide an important source of income. In return, these tourists benefit from their hospitality, such as enjoying local cuisine.