How does trade help development of a country?

How does trade help development of a country?

How does trade help development of a country?

  • Countries need to buy in goods that they cannot produce efficiently at home. e.g. The UK imports bananas because it is cheaper than growing them in heated greenhouses.
  • Countries sell products that they are good at making and have an excess of. They can then use the money they get from selling products to buy products from other countries.
  • Countries don't only sell products but also services too e.g. the UK sells banking, insurance and computing services to other countries.
  • The price is increasing for manufactured goods and decreasing for primary goods therefore the gap between rich and poor countries is growing.
Economic Development

Coffee growers in Brazil

Coffee growers in Brazil

Economic Development

Countries that rely on one product

Countries that rely on one product

Economic Development

Employment changes as a country develops

Employment changes as a country develops

Economic Development

Employment structures

Employment structures

Economic Development

Changes in Britain's employment structure

Changes in Britain's employment structure

Economic Development

GNP (gross national product)

GNP (gross national product)