A2 Global Development

TRADE and Employment

KEY WORDS
Global Trade/ Economic Globalisation/ World Trade Organisation (WTO)
Commodities/ Cash Crops/ Fair Trade/ Trade Liberalisation/ Neo
Liberalism/ TNCs/ Unemployed/ Underemployed/ Informal Economy
Real Economy/ Micro Credit/ International Labour Organisation (ILO)/
Child Labour/
KEY NAMES
Dependency Theory/ Neo Liberalism

TRADE
One of the most interesting aspects of Economic Globalisation has been the
increase in trade across the world: Global Trade. The flow of goods and services
between and across the developing and developed world offers a lot of
opportunity for the economic development of the LEDCs.
But, although there is increased trade in the developing world, the potential
benefits are not always felt by the people in those impoverished nations. Some
Sociologists suggest that trade relationships between the rich and poor countries
are exploitative. It has been called NEO-COLONIALISM, economic control.
Key Questions:
Is increased global trade leading to economic development within LEDCs?
If not, why not?
Is the international trade system fair?
The Facts about TRADE
Measuring Trade
The ratio of exports to GDP (gross domestic product money generated within
the country) has risen significantly for the whole world over the past 50 years,
and for most developing countries. (Coyle 2001)
Trade has increased massively in the past 50 years as the world has
become increasingly interconnected and globalized.

But the least developed countries have the smallest

stake in world trade. What is
the statistical evidence for this? (page 133)
In world trade, the poorest countries tend to be in the
dodgy position of selling
cash crops raw materials as a main export to only
one or two other countries.
Examples of this (page 133)

This leaves the developing countries and their producers in a vulnerable

situation because they receive a very tiny proportion of the final price of
product ( think back to the notes you made on chocolate cocoa in neo colonialism).
Even this small profit is at risk. Why? (page 133)

But developing nations have also benefitted from global trade

relationships.
Examples of this. (explain in detail p134)
High Oil Prices

A dramatic increase in trade with China

Falling prices in consumer goods

Theory on TRADE (pages 134-135)

Dependency Theory and Radicals (Globalization)
The key word to include in your description is Neo Colonialism

Neo Liberalism massively supportive of FREE TRADE but are developed

countries actually hypocrites?
The key word to include in your description is Trade Liberalisation

How is this Neo Liberal Agenda pushed on the developing world?

Well, The

World Trade Organisation has a massive role to play.

(Make notes from the board)

So how does FAIR TRADE fit into all this?

Define fair trade

THINK, REFLECT, ANSWER, DISCUSS

Why do we need fair trade?
What does the existence of fair trade say about the mainstream global
trade markets?

EMPLOYMENT (all note from pages 164166)

Hand in hand with Global Trade and the spread of

TNCs to the developing world is the issue of
employment.
The developing poor countries of the world are
the most pop ulace and therefore have the
potential to provide a massive workforce.
What type of employment exists in the
developing world?
There is more underemployment people not working full time because they
cannot find enough work in the developing world than in the developed.
There is more work done in the informal sector. What is this? Give
examples and detailed descriptions (Page 164-5)

There are 4 groups that are extremely vulnerable as workers in the informal
sector. List who they are and why they are vulnerable.

MICRO CREDIT is a way that agencies of development can support the

informal sector. Explain what it is.

The

formal sector is defined as what?

Why is it preferred by workers?

Who provides this type of employment and is there much of it available?

THE REAL ECONOMY

Child Labour
What is it?
What type of work and hours does it involve?
Why is it so bad?