Globalization Reading 3 - Influence on International Trade

What is a common issue faced by developing countries in international trade?

• They lack the infrastructure to utilize their resources.

• They control the international markets.

• They can set their own prices for products.

• They have too many natural resources.

Who often controls the markets for products coming from the developing world?

• Local farmers

• Underdeveloped countries

• Developing countries

• Developed world

What is a significant challenge for producers of commodities like coffee or cocoa?

• The price can fluctuate wildly even in one day.

• The price for their products is stable.

• They can store their products indefinitely.

• They can easily control the market prices.

Why do developing countries need to sell their goods to the developed world?

• To pay back international debt.

• To increase their natural resources.

• To control the international market.

• To avoid trading with other developing countries.

What organization monitors world trade?

• International Monetary Fund (IMF)

• World Health Organization (WHO)

• World Trade Organization (WTO)

• United Nations (UN)

What is one advantage of international trade?

• Countries can only depend on their own produce.

• It can lead to a more stable and peaceful world.

• It eliminates the need for international laws.

• It ensures equal wealth distribution among all people.

What is a disadvantage of international trade for developing countries?

• They can easily control the international markets.

• They have no natural resources to trade.

• They can set higher prices for their products.

• They are often held to ransom by the purchasing power of the developed world.

How can international trade harm producers in the developed world?

• By increasing local production costs.

• By making their products more expensive.

• By reducing the need for international laws.

• By allowing cheaper foreign products to enter the market.

What is a potential consequence of the imbalance of power in international trade?

• Build-up of resentment and local hardship.

• Improved international relations.

• Equal wealth distribution.

• Increased local prosperity.

What is a common argument against the current international trade agreements?

• They favor the developing world.

• They are drawn up and monitored by the developed world.

• They eliminate international debt.

• They ensure fair trade for all countries.