International Trade: An Unequal Relationship?

The video discusses global trade and interdependence, highlighting how no single country can produce all the raw materials it needs. It explains the unequal trade relationships where poorer countries provide raw materials to wealthier countries, which then refine and sell them back at higher prices. This creates trade deficits for poorer countries and trade surpluses for wealthier ones, perpetuating economic inequality. Wealthier countries maintain control over trade prices, sustaining this imbalance.

Why do countries engage in trade with each other?

• To avoid cultural exchange

• To reduce their land area

• To increase their population

• To obtain raw materials they lack

What is a common characteristic of trade relationships between poorer and wealthier countries?

• Wealthier countries import more than they export

• Poorer countries provide raw materials at low prices

• Wealthier countries buy raw materials at high prices

• Poorer countries sell finished goods at high prices

What happens to countries that have a trade deficit?

• They become wealthier

• They are likely to fall into debt

• They export more than they import

• They control global trade prices

What is a trade surplus?

• When a country only trades with one partner

• When a country has no trade with others

• When a country imports more than it exports

• When a country exports more than it imports

How do wealthier countries maintain control over trade relationships?

• By providing free resources to poorer countries

• By refusing to trade with poorer countries

• By importing more goods than they export

• By setting the prices of raw materials and products