5.1.4 Reasons for a widening gap – Trade and investment

primary products?

5.1.4 Reasons for a widening gap – Trade and investment

Where do most primary products come from and where do they end up?

How might this be changing recently in terms of - manufacturing locations- Geographical trade flow changes

Terms of tradePage 146 handout

1. What are terms of trade and how are they changing?2. What does this mean fora. the income of a poor exporting country?b. Local people needing primary products in that country?

Coffee – example of trade pattern

1. Why is it known as black gold?2. Which players benefit and which lose out from the current

trade pattern?3. Draw two coffee cups, one full of environmental impacts the

fluctuation in prices has led to. The other social impacts.

Recap

• How does trade affect the development gapTRADE