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Geography

Trade

Trade is the exchange of goods and services between countries. Watch this video to find out.

Video

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Key points

  • Trade is the exchange of goods and services between countries.
  • Imports are the goods bought into a country and exports are those sold to other countries.
  • A trade surplus means that the value of exports is greater than imports.
  • A trade deficit is when there are more imports than exports.
  • Fair trade products were introduced to help LEDCs make more money.
  • Fair trade guarantees the producer a fair price regardless of the world market.

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