Trading Relationships

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  • Created by: ANewman
  • Created on: 23-05-16 09:31
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  • Trade Relationships
    • Free trade
      • Trade without barriers our quotas
        • Case Study: EU
          • Impacts: free movement of good and services, but cant protect undercut industries - steal in UK. Free movement of people which increase work force but can destabilize economy
    • Fair Trade
      • Trading between Developed and Developing countries, to enforce the fair price payed for goods.
        • Case Study: Black Gold
      • Advantages: Increase profit for the developing countries work force, encourages trading with the developing country. Also increase jobs wold wide
      • Disadvantage: Increase price for consumer for the developed countries. not all fair trade is that good, can avoid giving money to farmers. it is not global, needs more companies to take it up
  • Advantages: Reduces money lost to taxes and increases trading. Also increase the quality of goods, increasing competition.
    • Free trade
      • Trade without barriers our quotas
        • Case Study: EU
          • Impacts: free movement of good and services, but cant protect undercut industries - steal in UK. Free movement of people which increase work force but can destabilize economy
  • Sheltering the domestic production in our countries by taxing imports, reducing competition.
    • Case study: American Peanuts
      • Impacts: locally the people have to pay more for the products, farmers can increase their prices as much as they want and still have sales. Globally the other countries are forced to reduce peanut farming, with less technology than America they cant compete.

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