Development

Issues
Lesson 5
 Factors
affecting
development
Unit 2: page 37
 Globalisation– the economic, social and
technological exchange between countries.
 International trade – trade between
countries.
Trade reasons for differences in
development
 Globalisation is a continuation of the trading relationship that began under
colonialism.
 Companies called multinationals (they have many companies in different
nations) use local raw materials and labour to produce goods in LEDCs and sell
these goods at high prices in the MEDCs.
Trade reasons for differences in
development
 International trade helps to circulate natural resources and manufactured
goods between different parts of the world.
 Globalisation is usually when big companies owned by people in rich countries
set up businesses in poorer countries.
How trade can prevent development
Rich countries pay
low prices for raw
materials

Workers get low

People don’t become wages, poor people
more skilled don’t have enough
money

Government doesn’t
get enough taxes to People are poorly fed
provide education and unhealthy
and health care
How trade can lead to development
Countries receive
high prices for their
products

Countries sell
Workers receive
manufactured goods
higher wages
at higher prices

Governments collect
People become
more taxes & provide
skilled & develop
education & health
new industries
care
Activity

 CompleteActivity 2
on page 38.
 Seethe next slide if
you do not have a
textbook.
How trade can prevent development

How trade can lead to development (previous slide)