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Question 10: Trade, aid and geopolitics Study Diagram Q10: Diagram Q10: Value of world trade by region (%) Asia Africa Europe North America Middle East Oceania South and Central America (a) Suggest reasons for the differences in trade shown in the graph - Scottish Highers Geography - Question 10 - 2018
Question 10
Question 10: Trade, aid and geopolitics Study Diagram Q10: Diagram Q10: Value of world trade by region (%) Asia Africa Europe North America Middle East Oceania So... show full transcript
Worked Solution & Example Answer:Question 10: Trade, aid and geopolitics Study Diagram Q10: Diagram Q10: Value of world trade by region (%) Asia Africa Europe North America Middle East Oceania South and Central America (a) Suggest reasons for the differences in trade shown in the graph - Scottish Highers Geography - Question 10 - 2018
Step 1
Suggest reasons for the differences in trade shown in the graph.
Answer
The differences in trade shown in the graph can be attributed to several factors:
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Economic Development: Europe and North America, being highly developed regions, have diversified economies with advanced technologies and robust infrastructures, allowing them to engage in more significant trade compared to developing regions like Africa and South America.
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Resource Availability: Different regions have access to various resources. For instance, African countries often export primary products such as minerals and agricultural goods, while European countries export manufactured goods.
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Trade Agreements: Regions like Europe benefit from trading blocks like the European Union, which facilitate easier trading partners and reduce tariffs, boosting trade volumes.
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Investment in Trade Infrastructure: Developed regions tend to have better ports, transportation systems, and logistics, which enhance their capacity to trade effectively on a larger scale.
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Market Demand: Higher consumption rates in wealthier countries lead to increased imports, which is reflected in their trade percentages.
Step 2
Explain the socio-economic and environmental impacts of unfair trade on the developing world.
Answer
Unfair trade can have detrimental socio-economic and environmental impacts on developing countries in several ways:
Socio-Economic Impacts
- Exploitation of Labor: Workers in developing nations are often subjected to poor working conditions and low wages, as multinational companies seek to minimize costs.
- Dependency on Raw Materials: Developing countries frequently rely on exporting raw materials rather than developing their industries, leading to economic vulnerability.
- Inequality: Unfair trade practices exacerbate wealth inequality, as profits are often repatriated to wealthier nations, leaving local communities with minimal benefits.
- Limited Economic Growth: The lack of fair trade stifles entrepreneurship and innovation, hindering local economic development.
Environmental Impacts
- Resource Depletion: Unfair trade often encourages over-exploitation of natural resources, leading to long-term environmental damage.
- Loss of Biodiversity: Intensive agricultural practices aimed at maximizing exports can result in habitat destruction and loss of biodiversity.
- Pollution: Industrial practices associated with unfair trade can lead to increased pollution from waste and emissions, worsening health conditions in local populations.
- Climate Change: The environmental degradation caused by unfair trade contributes to global warming, affecting weather patterns and agricultural productivity.