Photo AI
The graph shows who makes the profits in coffee production - Junior Cycle Geography - Question C - 2008
Question C
The graph shows who makes the profits in coffee production. Profit Shares from Coffee % Profit | Profits to Developed World | Profits to Developing World | 9... show full transcript
Worked Solution & Example Answer:The graph shows who makes the profits in coffee production - Junior Cycle Geography - Question C - 2008
Step 1
Explain how unfair trading may be a cause of poverty in the developing world.
Answer
Unfair trading practices significantly contribute to poverty in developing countries, primarily through the disproportionately low profits they receive from the international coffee trade.
According to the graph, developing countries, represented by growers, only receive 20% of the total profits, while the remaining 80% is distributed among exporters, shippers, roasters, and retailers in the developed world. This limited share of income means that growers have very little financial resources available to invest in their communities or improve their farming practices.
The scarcity of funds hinders the ability to enhance agricultural techniques, purchase better equipment, or invest in education and healthcare, further perpetuating the cycle of poverty. As a result, unfair trading not only limits immediate financial gains but also stifles long-term development and progress in developing nations.