Trade and Development 01

This KS3 Geography quiz challenges you on trade and development. The development of a country from an LEDC to an MEDC relies on industrialisation. The economy of an LEDC usually relies on agriculture, which is a lot less profitable than trading manufactured goods. In order to increase its economy, a country needs to build up the amount of goods it sells to other countries. These are called exports. If a country exports more than it imports, it is said to have a trade surplus. If the opposite is true, it has a trade deficit. If a country relies on exporting just a few products and the market for those products collapses, it will suffer economically.

A trade tariff is a kind of tax that has to be paid on imports and exports. Countries negotiate to arrange deals on the tariffs for the goods that they sell to each other.