Question

Explain the links between trade and the development gap (4marks)

Answer 1

The development gap is when a MEDC which stands for More Economically Developed Country has big businesses and companies like Nike and Costa who own factories. The companies go to LEDC which is a Less Economically Developed Country to open factories because in LEDCs there is no tax and cheap labour because the country is desperate for money and trade. The workers who work in the factory work long hours in poor conditions and have a very low pay of roughly $0.75 a day, this means the rich companies/countries get richer and the poor countries get poorer which creates a gap in the development.