Fair trade may or may not be sufficient in helping to significantly improve the economy of a country. Often countries need more assistance from developed countries. This will be explored in the next chapter.
1. Explain the different between fair and unfair trade. 2. Create a table with the headings ‘Health’, ‘Education’ and ‘Other’ to list how the suppliers have been using their Fairtrade premium payments. How do you think these extra payments help these countries grow their economy? Think back to the five indicators of economic development.
2 Globalisation
You will recall from Chapter 19 that globalisation is the process whereby the world has become more interconnected. Globalisation has had many positive impacts on the economic development of developed and developing countries; for example multinational companies (MNCs) setting up in countries around the world bring employment to local communities, which supports the economy of the local community.
Intel Ireland is a division of the multinational Intel Corporation, which operates out of the United States. Its Irish headquarters is located in Leixlip, and it employs 4,100 people. What do you think would happen if that company decided to move its operations to another country? What effect would this have on the local community and economy? Would this have an effect on the Irish economy in terms of GDP?
