Trade Vs Aid

The work I have done, in lesson, on Trade Vs Aid, and which one is better.

HideShow resource information
  • Created by: LenBon
  • Created on: 30-03-12 10:46
Preview of Trade Vs Aid

First 333 words of the document:

Helena Bonici Geography 31/01/2012
13EA2 Globalisation
1. Free trade: policy in which a government does not discriminate against imports or interfere
with exports. A free-trade policy does not necessarily imply that the government abandons
all control and taxation of imports and exports, but rather that it refrains from actions
specifically designed to hinder international trade, such as tariff barriers, currency
restrictions, and import quotas.
Protectionism: policy of protecting domestic industries against foreign competition by means
of tariffs, subsidies, import quotas, or other restrictions or handicaps placed on the imports
of foreign competitors.
Each of these will alter the world development and global economy because it actively works
to either increase or limit the trade via the world market. Free trade hopes to increase the
global development by allowing trade that is effectively the world and allow completely free
economics so that there is a high interdependence among all nations. Protectionism hinders
global development by placing restrictions upon world trade so that although certain places
may develop, not all will.
2. Aid
Bilateral: Often known as `tied' or `strings-attached' aid because it is the aid given to a
government of a less developed country by another government of a more developed
country. However, the aid is not generally given freely but will likely to have terms and
conditions attached which help to promote the economy of the more developed country and
so it often given for strategic political considerations rather than simply
humanitarian ones. It is known as Top-Down Aid.
Multilateral: Very similar to bilateral is the fact that more developed governments give aid
money to international organisations, such as World Bank, United Nations and
International Monetary Fund, which in term give the aid to the
developing nations' government. It has fewer ties for the governments,
but is still a form of Top-Down aid.

Other pages in this set

Page 2

Preview of page 2

Here's a taster:

Helena Bonici Geography 31/01/2012
13EA2 Globalisation
Non-Governmental Organisation: From NGOs, like World Vision, the Red Cross
and Oxfam, all provide aid via donations given by citizens of more
developed countries rather than governmental basis. Consequently,
they have less economic gain when providing aid, which is why they
generally bypass the government but instead focus on projects that will
aid the people, by either helping the trade of those people or by
providing measures which will increase the quality of life e.g. goats.…read more

Page 3

Preview of page 3

Here's a taster:

Helena Bonici Geography 31/01/2012
13EA2 Globalisation
create projects in the local communities to help raise quality of life e.g. a water pump because
there is a `social premium'.
Similarly, it hopes to increase trading between the less developed country and those countries
more developed, by increasing productivity as well as quality of the product produced
because it lowers the gross manufacture of products but instead makes them more selective.…read more

Page 4

Preview of page 4

Here's a taster:

Helena Bonici Geography 31/01/2012
13EA2 Globalisation…read more


No comments have yet been made

Similar Geography resources:

See all Geography resources »See all resources »