Podcast
Questions and Answers
What is a key implication of commodity dependence for a country's economy?
What is a key implication of commodity dependence for a country's economy?
What role do food subsidies from core countries play in global supply chains?
What role do food subsidies from core countries play in global supply chains?
Which of the following is NOT a factor that affects global supply chains?
Which of the following is NOT a factor that affects global supply chains?
What was a major goal of imperialist powers during their colonial expansions?
What was a major goal of imperialist powers during their colonial expansions?
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How did neocolonialism manifest in former colonies after gaining independence?
How did neocolonialism manifest in former colonies after gaining independence?
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Which agricultural commodity is Madagascar heavily associated with in terms of global supply?
Which agricultural commodity is Madagascar heavily associated with in terms of global supply?
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What impact can trade wars have on global supply chains?
What impact can trade wars have on global supply chains?
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Which group of countries is generally growing economically and becoming more influential in global trade?
Which group of countries is generally growing economically and becoming more influential in global trade?
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Study Notes
Global Supply Chains
- The global supply chain connects countries trading agricultural products worldwide.
- Cacao beans from tropical areas like the Ivory Coast are processed into chocolate and shipped globally.
- Many agricultural products, including wheat, corn, soybeans, coffee, vanilla, bananas, and strawberries, rely on global supply chains.
Commodity Dependence
- Commodity dependence means a country's economy heavily relies on exporting cash crops.
- Madagascar, a periphery country, exports nearly two-thirds of the world's vanilla, contributing about 10% to its economy.
- High demand for a commodity benefits a dependent country; decreased demand or production problems (like droughts or diseases) can be harmful.
Imperialism and Neocolonialism
- Western and, especially, European powers built empires from the 15th to 20th centuries.
- Imperialist powers exploited colonies for raw materials used in their industries.
- Post-independence, many former colonies struggled to diversify their economies, remaining reliant on previous colonial exports.
- This created neocolonialism; former colonies still depend on Western nations economically and politically.
Factors Affecting Global Supply Chains
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Political Relationships:
- Core countries often subsidize their farmers, making it hard for developing countries to compete.
- Trade wars, like those between the US and China in 2018, disrupt global supply chains and can cause surpluses.
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Infrastructure:
- Essential for global trade, including roads, bridges, and electricity.
- Lack of infrastructure hinders agricultural trade and can lead to food shortages.
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Shifting Patterns of World Trade:
- Semi-periphery countries like India are growing economically, increasing their global trade role.
- The fair trade movement advocates for fair wages for farmers in developing countries.
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Description
This quiz explores the complex relationships in global supply chains, focusing on agricultural commodities like chocolate and vanilla. It examines how countries depend on these cash crops and the implications of commodity dependence for economies. Assess your understanding of international trade and its impact on local economies.
