Trade

Question 1

Since the 1940s, efforts to create development in the poorer countries of the world have centred around two approaches..

Answer 1

• use of trade to promote economic growth

- provision of aid by the developed countries of the North to the poorer countries south of the Brandt line

Question 2

Earlier what did economists believe was the way forward for the development of the South

Answer 2

Industrialisation- provide more goods for export (more income)
- based on the assumption that the South needed to go through the same process that the richer countries of the north had experienced it

Question 3

Some economists doubt that poorer countries with issues such as AIDS and war can ever become developed through trade and economic growth. They argue that:

Answer 3

• cannot be competitive- wealth gap between them and developed countries
• no investment
• depend on agricultural exports (prices falling)
• lack of trickle down
• debt