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.

What is meant by the term 'interdependent' in the context of international trade?

How do poorer countries contribute to the economies of wealthier countries?

Explain the concept of trade deficit and its potential impact on a country's economy.

Discuss the relationship between trade surplus and a country's wealth.

What are the implications of wealthier countries setting the prices of raw materials?