Presentation on theme: "MEDCs add import taxes/tariffs to LEDC products, this makes them more expensive. 10p12p."— Presentation transcript:
MEDCs add import taxes/tariffs to LEDC products, this makes them more expensive. 10p12p
MEDCs put quotas on the import of LEDC products- they are only allowed to export a set amount to a country.
MEDCs can also give subsidies to their producers. 10p 5p
LEDCs could protect their own producers with taxes, tariffs and quotas, but they are likely to lose loans from MEDCs. 10p 15p
MEDCs have joined trading blocks, such as the European Union, which protect their producers from outside imports, but allow free trade between each other.
LEDCs have been encouraged to produce primary products, as such overproduction leads to falling prices... 10p 1p
Primary agricultural products are effected by a number of natural factors which are out of the control of producers.
LEDCs tend to export primary goods and import secondary products. This creates a deficit which they have to fill with loans. 10p 100p
I t would be in the interests of LEDCs to produce secondary products, but they struggle to do this because... Capital to invest Skilled and educated workforce Trade rules and accessing MEDC markets Political stability Infrastructure