Fair Trade

What is Fair Trade? Fairtrade does what it says on the label; it guarantees a better deal to producers in the developing world. This means a stable price which covers their production costs, along with a premium that their organisation will be able to reinvest either in the business or social and environmental schemes among the wider community. Too many farmers in the developing world have to contend with fluctuating prices that may not even cover what it costs to produce their crop. So Fairtrade can make a big impact on their day-to-day life. And on their future and that of their family. The need for fair trade International trade may seem a remote issue, but when commodity prices fall dramatically it has a catastrophic impact on the lives of millions of small scale producers, forcing many into crippling debt and countless others to lose their land and their homes. Products like coffee, tea and chocolate, that we in the north have come to depend on, are produced in the warmer climates of the south. The prices paid for these commodities have not risen in real terms over the last forty years, whilst the value of fertilisers, pesticides and machinery (imported from the rich countries) has increased substantially. Consequently many of the people who grow these crops are having to work harder and longer for less money. On top of this the market price of commodities

  • Word count: 802
  • Level: AS and A Level
  • Subject: Economics
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Foreign Aid

Foreign Aid The dictionary definition of the term 'foreign aid' is: "The administered transfer of resources from the advanced countries for the purpose of encouraging economic growth in developing countries." [Bannock:1988 P.164] However, so as not to confuse foreign aid with the investments of multinational corporations or commercial banks, many economists require foreign aid to meet two distinct criteria: 1) Its objective must be noncommercial from the point of view of the donor and 2) it should be characterized by concessional terms. There are many ways and means of transferring resources to LDC's (Less Developed Countries): Multilaterally, as with the many international agencies such as the World Bank or various departments of the United Nations. Bilaterally, which is an agreement between two countries for a specific amount or item of aid. Direct food aid, or, the granting of preferential tariffs by developed countries to Third World exports of manufactured goods. However, the evaluation of the effects and purposes of foreign aid has become a subjective and value-laden minefield, with many commentators simply picking out the facts which suit their particular ideological perspective. In this essay we will assess how the different forms of foreign aid affect LDC's, examine the opposing theories of dependency and modernization in relation to development assistance, and

  • Word count: 3471
  • Level: AS and A Level
  • Subject: Economics
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How to reflate France's economy - Essay

Grégoire Michelin 2nd2 13/11/12 Economy Essay “We” in the essay = me and my government. 1428 words Introduction There are two different ways to help France’s economy get back on track. They are austerity and growth. Austerity programs consist in a set of policies established by governments in financial debt difficulties. These policies aim to reduce spending for public goods and services. (Example in France, with president Sarkozy, approximately 150.000 civil servants were fired, this decreased the amount of money used to pay civil servants in France, which in turn, made it possible to run the country without having to borrow as much money). Growth programs consist in increasing the GDP and spending money, to reflate the economy. Of course this money has to come from somewhere, so growth programs often include imposing a lot of taxes. (Example in France, with president Hollande, taxes were imposed on bank profits, and taxes on the richest part of the population were increased). Economists are very divided on this subject, and both of theoretically work; it depends of the situation we are in. Economic Program Austerity

  • Word count: 1673
  • Level: AS and A Level
  • Subject: Economics
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Advantages and Disadvantages of International Trade

INTERNATIONAL TRADE. In the economics term, International trade is the exchange of capital goods and services internationally. International trade includes other countries working with one another to stabilize their economy system in their own country and also getting benefits from other countries. Before working on with this trade, it has some advantages and disadvantages. Firstly, the advantages for international trade is that the economy in the use of productive resources whereby each country tries to produce those goods in which it is best suited. As the resources of each country is fully exploited, there is thus a great economy in the use of productive resources. Next, the international trade makes better international relations with other countries as well, by trading/exporting/importing things with other countries, both sides would work harder and together. Other than that, it would speed up the industrialization where this international trade enables a country to acquire a skill machinery and other capital equipment from industrially advanced countries for speeding up the industrialization. In addition, there are also extension means of transport such as where the goods are exchanged from one country to another it leads to an extension of the means of communication and transportation. Next, international trade could increase the standard of living because when

  • Word count: 618
  • Level: AS and A Level
  • Subject: Economics
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What factors caused the drop in the UK's Global Competitiveness Rank in 2007 - 08?

Question 3 – Callum Trounce . One factor which may have contributed to the fall of the UK’s Global Competitive Index is productivity. The GCI is a comparison between different countries; this means that the fall UK’s productivity is relatively larger. The economic crisis can be seen as a reason to cause a drop in productivity as the crisis occurred around the same time period, making it feasible. The crisis caused firms to have profit to reinvest (or no profit at all) and so research and development will be neglected. If R & D is neglected, improving productive efficiency will become a slower process which would lead to unit costs being more expensive than foreign competitors. A higher unit cost means that exports from the UK are likely to become more expensive as firms raise their prices to cover labour costs. This means that the UK becomes less competitive globally and therefore can be seen as a contributor to the fall in GCI for the UK. This can be backed up as the BoP for the UK was at its most negative point in 2007. However, the economic crisis has occurred worldwide and so many other countries have been affected, such as Germany who is seen as a major exporter of motor vehicles. This means that the drop in GCI may not have been as bad as what it could have been. The exchange rate could also have an impact. The value of the pound appreciated up until a peak in

  • Word count: 546
  • Level: AS and A Level
  • Subject: Economics
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Assess the economic effects of the growth of trading blocs on the global economy

"Assess the economic effects of the growth of trading blocs on the global economy" [20] Trading blocs are groups of countries that agree to reduce trade barriers amongst themselves. This is used to promote trade activities within certain areas, whilst also assisting in economically managing specific regions. By implementing trade blocs it provides a means of agreement between the countries within that trade bloc to enable them to benefit from each other through trade. A trading bloc increases and creates trade between countries. Trade creation occurs when consumption shifts from a high cost producer to a low cost producer. For example, if the UK started taxing imported Brazilian sugar, but did not tax imported European Union sugar, consumption would shift to European Union sugar because it is cheaper than Brazilian. Low cost imports lead to the imported items having a lower price tag which then leads to greater consumption, with increased demand resulting from lower prices. This leads to greater efficiency for the consumer which means that EU sugar has the comparative advantage. As shown in the graph, as aggregate demand in the trade bloc increases, so does output, and real GDP. However although real GDP may rise, depending on the elasticity of the aggregate supply curve, there could be a large rise in the general price level, which could lead to inflation within the

  • Word count: 613
  • Level: AS and A Level
  • Subject: Economics
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An Economic report of Manchester

An Economic report of Manchester Employment Performance Which sectors does Manchester outperform the UK. Education it outperforms the UK it’s the second largest city In the UK its normal to expect it to spend more on education due to its high population. Interestingly professional Scientific and technical activities outperform the UK. A new economy has been put in place a smarter Economy based on tertiary sectors moving away from its manufacturing past. 2023 its estimating employment in The above sector will rise around 130,000 for the greater Manchester region. Accommodation and food service Activities outperforming the UK is expected also as it’s the second most visited city in England and 3rd in the UK. Sectors which do poorly manufacturing once the cotton producing capital of the world now this industry is all but Extinct. Information and communication is behind the UK average this is surprising as recently media city has been opened in Manchester ITV, BBC and SIS are based there. Madchester Today It’s important not to underestimate the effect cities music or sports scene has, many people would recognise Liverpool ahead of a more economically significant city like Birmingham due to The Beatles. Manchester became the music capital of England in the 80s and continued onwards in the 90’s. Manchester United is the most supported club in the world.

  • Word count: 891
  • Level: AS and A Level
  • Subject: Economics
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Analyse the effects of a rise in the UKs economic output

Analyse the effects of a rise in the UK’s economic output UK economic output rose by 0.8% between July and September. Economic output is the value of the goods and services produced by all sectors of the economy; agriculture, manufacturing, energy, construction, the service sector and government. Businesses will benefit from this as rising GDP may indicate rising incomes and increased spending on goods and services. This will generate more profit for firms and increased opportunities for future investment. This is particularly true in the housing market where construction companies are in high demand and the increase in supply of houses is boosting output and investment in this sector and beyond. Rising GDP will also benefit the government. Increased spending will boost demand for labour by firms, which will reduce the requirement to spend so much on benefits by the government as well as increasing income tax revenues. Extra government revenue helps to reduce the budget deficit and consequently lead to more sustainable government finances. Higher output raises tax revenue without having to increase tax rates, and some of this extra revenue can also be used to improve public services, such as education and health care. Although incomes are rising, if the cost of living is rising at a faster rate due to inflation, it will have a negative effect on people’s standard of

  • Word count: 433
  • Level: AS and A Level
  • Subject: Economics
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Assess the view that the main cause of globalization is the increased significance of transnational companies. What are the costs and benefits?

Assess the view that the main cause of globalisation is the increased significance of transnational companies? Globalisation is the process by which the world’s economies become more closely integrated and interdependent. Globalisation has increased significantly over the past 50 years due to a number of factors. The increased significance of transnational companies, which are companies that are based in different countries i.e. have offices in various different parts of the world, has had an impact on increasing globalisation. As the companies have various offices and production points around the world it means that the world’s economies are becoming more interdependent. For example a car making firm may have its assembling parts in one country but it may have been designed in another country. This means that the process and parts of production is being placed in different parts of the world and coming together at the end as a finished product, demonstrating the world integrated economies. Transnational companies allow the process of globalisation to take place by setting up in the different countries and bringing the parts all together to make a finished product or service. However it may be argued that the increased significance of transnational companies is not a cause of globalisation but more of a result of it as such companies wouldn’t be able to set up in

  • Word count: 1313
  • Level: AS and A Level
  • Subject: Economics
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Discuss Colliers view of the natural resource trap that countries that are rich in natural resources are less developed than those that are not so well endowed (20 marks)

Sam Larlham 13AMA F585: Development Economics Discuss Collier’s view of the ‘natural resource trap’ that countries that are rich in natural resources are less developed than those that are not so well endowed (20 marks) The natural resource trap is an idea proposed by Paul Collier, a development economist, in his book The Bottom Billion. The paradoxical suggestion that countries rich in natural resources are less developed than those that are not is one of great debate, where many variables must be considered. One factor that supports Collier’s view is to do with government revenue. In many developing economies, there is a high level of government planning and as such, many natural resource exporting companies are nationalised. This means that much of the export revenue generated by the natural resources goes to the government. Equally, in economies where these companies are not necessarily state owned, the government can still generate large amounts of revenue on tariffs paid by importers for the resources. These two aspects mean that the government does not have to tax its citizens, or if so only at a small rate. Whilst this may benefit the disposable income of the domestic population, it can mean that policymakers have less financial accountability to their citizens. This can cause issues with corruption, or mean that fiscal spending is not

  • Word count: 598
  • Level: AS and A Level
  • Subject: Economics
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