2. Specification detail
The extremes of income distribution
internationally
The effect of import protection and export
subsidy on businesses
3. Average weekly pay
Country Weekly Pay (£)
Brazil 58
Bulgaria 25
China 23
Germany 392
India 15
Latvia 46
Slovakia 76
UK 447
• Not only wages but the cost of petrol for transport and rent are
much cheaper.
• If you owned a store that produced sporting equipment, what
would this information tell you?
4. Good business or exploitation?
IndianGarment Factory : Here
Working in the Thai rice industry: Here
Supplying our chocolate: Here
5. Local effects of global
business
Quotas: only allowing a certain amount of
any product to be sold in a country
Subsidy: Paying local people a sum of
money which allows them to compete
globally.
6. Import protection
Quotas:
A government can impose an
import quota on any commodity.
Customers will then have less
choice and local producers have
no incentive to reduce their price.
Those wanting to import their
product will often bid/pay for their
right to sell their item in this
country. In turn, this will make the
item more expensive.
7. Export subsidy
Subsidy : Here
Businesses may receive a payment to export what
they produce. The money they earns means they
can sell their product for less and still make enough
to compete.
The World Trade Commission has put pressure on
governments to cease this funding. Bad news for
local farmers, great news for international farmers.
An Argument in economics exists: If it can be sold
at a price that the markets wants, it shouldn’t be
part of the market.