Social Grade 8 Unit 2 PDF

**Social grade 8 unit 2** **Cultural diversity\ **Cultural diversity is the existence of a variety of cultural groups within a society.\ Cultural groups can share many different characteristics with each other, such as\ religion, language, nationality etc....\ In Ethiopia different cultural groups...

**Social grade 8 unit 2** **Cultural diversity\ **Cultural diversity is the existence of a variety of cultural groups within a society.\ Cultural groups can share many different characteristics with each other, such as\ religion, language, nationality etc....\ In Ethiopia different cultural groups exist having different traditions, ethnic\ identities, modes of life, religions values, etc. living together under the\ jurisdiction of one state. Such societies are called multi- cultural societies.\ Multiculturalist societies have diversified cultures or sub- cultures within the\ society. In such kinds of society peaceful co-existence and unity is based on\ mutual respect and tolerance among each other.\ **Cultural Changes\ **All cultures change over time and none is static. However, the rate of change\ and the aspects of culture that change vary from society to society. Cultures are\ internally affected by two forces: forces resisting change and forces encouraging\ change. Resistance can come from habit, religion, and other cultural traits.\ Three phenomena promote cultural change;-**Inventions**, the process of creating\ new cultural elements. -**Discovery**, recognizing and understanding an idea not\ fully understood before. -**Diffusion**, the spread of cultural traits from one cultural\ system to another.\ **2.1.1 The Development of Human Culture\ **Cultural evolution is due to the cumulative effect of culture. We now understand\ that the time between major cultural inventions has become steadily shorter,\ especially since the invention of agriculture 8,000-10,000 years ago. The\ progressively larger human population after that time was very likely both a\ consequence and a cause of accelerating culture growth. The more people there\ are, the more likely new ideas and information will accumulate. If those ideas\ result in a larger, more secure food supplies, the population will inevitably\ grow. In a sense, culture has been the human solution to surviving changing\ environments, but it has continuously compounded the problem by making it\ possible for more humans to stay alive. In other words, human cultural evolution\ can be seen as solving a problem that causes the same problem again and\ again. The ultimate cost of success of cultural technology has been a need to\ produce more and more food for more and more people.\ The invention of agriculture made it possible for our ancestors to have a more\ controllable and, subsequently, dependable food supply. It also resulted in\ settling down in permanent communities. This in turn set the stage for further\ developments in technology and political organization. The inevitable result was\ more intensive agriculture, new kinds of social and political systems dominated\ by emerging elite classes, the first cities, and ultimately the industrial and\ information revolutions of modern times.\ The rate of cultural evolution for many human societies during the last two\ centuries has been unprecedented. Today, major new technologies are invented\ every few years rather than once or twice a century or even less often, as was the\ case in the past. Likewise, there has been an astounding increase in the global\ human population. It is worth reflecting on the fact that there are people alive\ today who were born before cell phones, computers, televisions, radios,\ antibiotics, and even airplanes. These now elderly individuals have seen the\ human population double several times. The world that was familiar to them in\ their childhood is no longer here. It is as if they have moved to a new alien\ culture and society.\ **2.1.2 Major Cultural Elements\ **Culture is reflected through the various components or elements that it\ comprises. The major elements that a culture comprises include: language,\ religion, values, customs, human race, norms, artifacts, and laws. We focus on\ language, religion and ethnic group as major cultural elements and discuss\ somewhat in detail below.\ **Language\ **Language is defined as a system of verbal and written symbols with rules about\ how those symbols can be put together to convey more complex meanings.\ The essential characteristics of culture are the sharing of meanings among\ members of a society. The chief mechanism for this sharing is a common\ language. It is a key element of culture. Culture encompasses language and\ through language culture is communicated and transmitted. Without language it\ would be impossible to develop, elaborate and transmit culture to the future\ generation.\ Language is the ability to communicate in symbols, orally or in writing. In other\ ways language includes verbal and non-verbal ways that a culture is\ communicated through speaking, writing and gestures. Language makes it easier\ to express ideas and thoughts within a culture.\ There are about 6,500 spoken languages in the world today and each language is\ unique in a number of ways. In Africa more than 1000 languages are spoken, and\ in Ethiopia alone more than 85 languages are spoken.\ **Religions\ A religion** is a philosophical entity whose members share a belief in one or more\ a higher power or God. As religion was a primary organizing system for societies\ for many centuries, cultures grew with and around religions. The relationship\ between culture and religion is revealed in the motivation and manifestation of\ cultural expression. If culture expresses how humans experience and understand\ the world; religion is fundamental way in which humans experience and\ understand the world.\ The culture that arises from religion has been broadly categorized in four ways:\ 1. ―immoveable,‖ for example ancient places of worship or sites of spiritual\ significance,\ 2. ―moveable,‖ such as artifacts used in religious ceremonies with artistic\ heritage, values and of high quality craftsmanship,\ 3. ―tangible,‖ such as books and manuscripts of holy texts or music, and\ 4. ―intangible,‖ which takes the form of various traditions, orally transferred\ knowledge or specific practices and beliefs that are transferred across\ generations and between practitioners of a faith.\ ***The Human Race\ ***A race is grouping of humans based on shared physical or social qualities that are\ generally viewed as distinct by society. A human race is defined as a group of\ people with certain common inherited features that distinguish them from other\ groups of people. All men or women of whatever race are currently classified by\ the anthropologist or biologist as belonging to the one species, Homo--sapiens.\ There are about four major human races, these are Black race,(which includes\ Africans and afro Americans) White race (European people), Mongloids, (that\ including Chinese, Japanese, Koreans, and American Indians etc.), Caucasoid,\ (the Arabs of middle East ). Each of these races have their own sub groups and\ one of this is ethnicity,\ **Ethnic group** refers to people who identify themselves as a distinct group based\ on cultural features such as common origins, language, customs and beliefs.\ Ethnic groups can be historically constituted (a group of people who shared a\ territory, language or religion) What is cultural diversity? A\) The dominance of one culture over others B\) The existence of a variety of cultural groups within a society ✔ C\) The assimilation of all cultures into a single one D\) The absence of cultural groups in a society \-\-\-\-\-\-\-\-\-- What characterizes a multicultural society? A\) Uniform language and religion B\) Homogeneous cultural practices C\) Isolation of different cultural groups D\) Diversified cultures or sub-cultures living together ✔ \-\-\-\-\-\-\-\-\-- Which of the following is NOT one of the three phenomena that promote cultural change? A\) Discovery B\) Traditions ✔ C\) Inventions D\) Diffusion \-\-\-\-\-\-\-\-\-- What has accelerated the rate of cultural evolution in the last two centuries? A\) Unprecedented rate of new technologies and population growth ✔ B\) Decreasing human population C\) Slower technological advancements D\) Isolation of societies \-\-\-\-\-\-\-\-\-- Which major cultural element is defined as a system of verbal and written symbols with rules? A\) Language ✔ B\) Values C\) Customs D\) Religion \-\-\-\-\-\-\-\-\-- How many spoken languages are estimated to exist in the world today? A\) Approximately 6,500 ✔ B\) Approximately 10,000 C\) Approximately 1,000 D\) Approximately 3,000 \-\-\-\-\-\-\-\-\-- What is a key element that facilitates the sharing of meanings among members of a society? A\) Language ✔ B\) Customs C\) Artifacts D\) Religion \-\-\-\-\-\-\-\-\-- Which of the following is an example of an \'immoveable\' cultural element? A\) Ancient places of worship ✔ B\) Traditions and orally transmitted knowledge C\) Artifacts used in ceremonies D\) Books and manuscripts \-\-\-\-\-\-\-\-\-- What term refers to people who identify as a distinct group based on cultural features such as common origins and language? A\) Ethnic group ✔ B\) Race C\) Society D\) Nation \-\-\-\-\-\-\-\-\-- What was one of the consequences of the invention of agriculture? A\) Development of nomadic lifestyles B\) Settlement in permanent communities ✔ C\) Reduction in cultural diversity D\) Decrease in human population **2.1.3. Globalization and dynamics of social and cultural Values\ *****What do you think about globalization?\ *Globalization** is the process of interaction and integration among people,\ companies, and governments worldwide. Globalization has accelerated since 18th\ century due to advances in transportation and communication technology. This\ increase in global interactions has caused a growth in international trade and\ exchange of ideas, beliefs, and culture. Globalization is primarily an economic\ process of interaction and integration that is associated with social and cultural\ aspects.***\ ***Cultural globalization refers to the transmission of ideas, meanings and values\ around the world in such a way as to extend and intensify social relations. One\ aspect of human life that globalization affect is culture and cultural values. Loss\ of individualism and group identity occur when globalization encourages\ western ideal of individualism.\ Another result of globalization regarding culture is assimilation into other***\ ***cultures. This process is marked by the common consumption of cultures that\ have been defused by the internet, popular culture media, and international\ travel.\ \ **2.1.4. Respect of humanity and indigenous knowledge\ **What is Humanity: Humanity is the human race, which includes everyone on\ Earth. It is also a word for the qualities that make us human, such as the ability to\ love and have compassion and be creative. The word humanity comes from Latin\ word *'humanitas'* for human nature, kindness. Humanity includes all the\ humans, but it can also refer to the kind of feelings humans often have for each\ other.***\ ***Indigenous knowledge is the knowledge that helps society make decisions about\ activities that are acceptable to ways of life. It is a knowledge used by local\ people to make a living in a particular environment, inherited from earlier times\ via oral traditions.\ Ethiopia is a land of diversity with profound indigenous knowledge. The country\ is a home of over 80 cultural and linguistic groups with rich and diverse systems\ of indigenous knowledge and values. The country is characterized by vast and\ deep forms of indigenous knowledge on which the everyday cultural, social,\ economic and religious lives of individuals and groups are based.\ ***\ ***Agriculture Manufacturing Trade\ Fishing Industry Transport\ Forestry Harvest Communication\ Mining Development Tourism***\ *2.2. Major economic activities\ *At the end of this section, you will be able to:\ ***Explain the major types of economic activities;\ Relate major economic activities with countries levels of development;\ Compare and contrast agriculture of the developed and developing\ countries;\ Economic activity is the production, distribution and exchange of goods and\ services. Some examples of these activities are hunting, fishing, farming,\ grazing, mining, manufacturing, transportation, trade and others.\ In the world, there are numerous activities through which human beings earn\ their livings. It is, in fact, difficult to mention all of them here. Hence, at this\ grade level you are going to learn the following three economic activities only.\ These are:\ Primary economic activities\ Secondary economic activities\ Tertiary economic activities*\ ***2.2.1. Primary Economic Activities**\ Primary economic activities focus directly on the extraction of resources from the\ environment. They involve the production of food stuffs and raw materials. A\ few examples of primary economic activities include:\ Agriculture\ Fishing\ forestry, and\ Mining. All of these jobs are dependent upon the natural\ resources of the earth.\ Primary economic activities are characterized by the following. They are:\ *Harvesting or extracting sectors\ * *Dependent on the natural environment.\ * *Related to the production of foodstuffs and raw materials.\ * *Influenced by the condition of the physical environment.\ ***Primary Activities\ **Agriculture\ Forestry\ Fishing\ Mining***\ *2.2.2. Secondary Economic Activities**\ Secondary economic activities are activities which are concerned with the\ making of economic goods from the products of primary activities. Secondary\ economic activities include:\ Manufacturing\ Construction and\ Power production.\ **Manufacturing** is the activity which turns raw materials into finished or semifinished products by using labor, energy and equipment. It is the activity of\ making articles which take place in factories. The term manufacturing may refer\ **Primary Economic Activities\ ****Agriculture** is the science and art of cultivation of crops and the rearing of\ livestock for either consumption or commercial purposes. It is one of the\ most important activities of human beings, because it provides foodstuffs\ for the population and raw materials for industries. Above all, it forms the\ basic livelihood for the majority of the peoples of the world. For example,\ about 60 percent of the world\'s population gets its livelihood from\ agriculture.\ **Forestry** is a primary economic activity mainly concerned with the\ extraction of forest products such as wood, timber, gums, nuts, barks, etc.\ for different purposes.\ **Fishing** is a primary economic activity concerned with the catching and\ harvesting of fish, other marine creatures, such as whales, seals, pearls,\ lobsters, crabs, prawns, mollusks, sponges and seaweed**.\ ****Mining** is a primary economic activity concerned with the extraction of\ mineral-bearing substances from the earth's crust. It is closely linked to\ manufacturing, which is a secondary type of activity**.\ **Focus**\ **to a range of human activities, from handicraft to the use of high technology.\ **Industry** refers to the place where manufacturing takes place. Also, sometimes\ the word industry is used to many types of economic activities, for example, the\ hotel industry, the tourism industry, the fishing industry, trade industry etc.\ Manufacturing activities are characterized by the following features:\ *transformation of raw materials into finished or semi-finished goods.\ * *dependency on raw materials that are obtained from the primary economic\ sector.\ * *most modern manufacturing industries need power, skilled manpower, huge\ capital, modern technology and a high level of division of labor.\ * *production of end products that are ready for consumption or semi- finished\ goods that serve as an input for other industries.\ Figure 2.2: secondary economic activities\ ***2.2.3. Tertiary Economic Activities**\ The tertiary economic activities sometimes also known as the service sector or\ the service industry. This is because the basic characteristic of this sector is the\ **Secondary Activities\ **Manufacturing\ Construction\ Power Production***\ ***provision of services. Hence, the tertiary economic activity involves the\ provision of services to other businesses as well as to the final consumers. The\ major types of tertiary economic activities include:\ Trade\ Transportation and communication\ Tourism etc.*\ ***2.2.4. The effect of different economic activities on countries economic\ development*\ *Economic basis of developing countries\ **The developing countries are those in which the natural resources are not fully\ and properly utilized. Their economy is still not developed. Most developing\ countries are found in Africa, South America and Asia.\ The economy of the most developing countries is primarily dependent on the\ **Tertiary Activities\ **Trade\ Tourism\ Transportation\ Communication**\ **primary economic sectors. Agriculture is by far the most important economic\ activity employing the majority of the labor force and being the main source of\ foodstuffs, industrial raw materials, and exportable items which provide the main\ source of foreign currency. Extraction of minerals, catching fish and other\ marine creatures and fetching gums from forests, which constitute the primary\ economic sector, are also major economic activities in which many people in\ developing countries are engaging in.\ But agriculture tends to be poorly organized with primitive techniques and\ insufficient or no machinery. Subsistence farming is prevalent in many parts i.e.\ most farmers are unable to produce enough food even for themselves and for\ their families. Even in areas where commercial farming is practiced, the problem\ is more of one commodity dominance, whereby exports are based on a single\ agricultural product. Such an imbalance makes the developing countries\ vulnerable to natural disasters, change in world prices, change in demand and\ competition.\ The secondary and tertiary economic sectors in most of developing countries are\ less developed, since these are recent developments. Most of the manufacturing\ industries are cottage types; the majority of the modern manufacturing industries\ are light industries that focus on the production of consumer goods. Heavy\ industries that could produce machineries, air crafts, ships and automobiles are\ almost non-existent in most of developing countries, except a few.\ Regarding the service sector, it is still far behind a higher level of development.\ Transport and communication networks are underdeveloped. International trade\ in less developed countries is dominated by the exportation of raw materials and\ importation of manufactured goods to and from the developed nations. This*,* in\ turn, makes their trade balance negative*.* Generally*,* in most developing\ countries, efficient transport services and networks, marketing, industrial and\ commercial activities are all missing or at infancy stage of development. This is***\ ***because of:\ shortage of capital\ lack of skilled human power.\ Lack of efficient technology.\ As a result, most of the sectors remain dependent on insufficient local capital\ investment, traditional know- how of production and backward traditional\ technology. What is the primary driver that has accelerated globalization since the 18th century? A\) Advances in agricultural techniques B\) Increased military expenditures C\) Advances in transportation and communication technology ✔ D\) Political alliances between countries \-\-\-\-\-\-\-\-\-- Which of the following best defines cultural globalization? A\) The exchange of goods and services across borders B\) The transmission of ideas, meanings, and values around the world ✔ C\) The integration of national economies through trade agreements D\) The migration of people to different countries \-\-\-\-\-\-\-\-\-- What is a potential negative effect of globalization on cultural values? A\) Increase in international trade B\) Loss of individualism and group identity ✔ C\) Advancement in communication technologies D\) Growth in global tourism \-\-\-\-\-\-\-\-\-- What term describes the knowledge used by local people to make a living in a particular environment, inherited through oral traditions? A\) Indigenous knowledge ✔ B\) Formal education C\) Technological knowledge D\) Scientific knowledge \-\-\-\-\-\-\-\-\-- Ethiopia is characterized by which of the following in terms of indigenous knowledge? A\) Over 80 cultural and linguistic groups with diverse indigenous knowledge ✔ B\) Predominantly influenced by Western educational practices C\) A homogenous cultural group with limited knowledge systems D\) Lack of traditional knowledge due to modernization \-\-\-\-\-\-\-\-\-- Which of the following is NOT a primary economic activity? A\) Agriculture B\) Manufacturing ✔ C\) Mining D\) Fishing \-\-\-\-\-\-\-\-\-- What characterizes primary economic activities? A\) Involvement in the production of finished goods B\) Focus on the service sector C\) Dependency on the natural environment ✔ D\) Creation of technological innovations \-\-\-\-\-\-\-\-\-- Secondary economic activities are primarily concerned with: A\) Providing services to consumers B\) Extraction of natural resources C\) Manufacturing goods from primary products ✔ D\) Agricultural production \-\-\-\-\-\-\-\-\-- According to the context, what aspect of humanity is emphasized as part of its definition? A\) Military strength B\) Technological advancement C\) Ability to love and have compassion ✔ D\) Economic success \-\-\-\-\-\-\-\-\-- How does globalization influence the assimilation into other cultures? A\) By isolating cultural practices B\) Through the common consumption of cultures via the internet and media ✔ C\) Through decreasing international trade D\) By reducing international travel What is manufacturing primarily concerned with? A\) Growing crops and rearing livestock B\) Providing services to consumers C\) Extracting minerals from the earth D\) Turning raw materials into finished or semi-finished products ✔ \-\-\-\-\-\-\-\-\-- Which of the following is NOT a primary economic activity? A\) Forestry B\) Agriculture C\) Manufacturing ✔ D\) Fishing \-\-\-\-\-\-\-\-\-- What percentage of the world\'s population gets its livelihood from agriculture? A\) 75% B\) 30% C\) 60% ✔ D\) 45% \-\-\-\-\-\-\-\-\-- Which sector is also known as the service sector? A\) Tertiary ✔ B\) Secondary C\) Quaternary D\) Primary \-\-\-\-\-\-\-\-\-- What is a major characteristic of manufacturing activities? A\) Providing transportation services B\) Transformation of raw materials into finished goods ✔ C\) Fishing and harvesting marine life D\) Raising livestock for consumption \-\-\-\-\-\-\-\-\-- Which of the following is a tertiary economic activity? A\) Tourism ✔ B\) Mining C\) Construction D\) Agriculture \-\-\-\-\-\-\-\-\-- Why are the secondary and tertiary sectors less developed in most developing countries? A\) They lack natural resources B\) They focus too much on heavy industries C\) There is a shortage of capital and skilled manpower ✔ D\) They have excessive technological advancement \-\-\-\-\-\-\-\-\-- What is the main source of foreign currency for developing countries? A\) Domestic consumption B\) Agricultural exports ✔ C\) Services sector D\) Manufactured goods \-\-\-\-\-\-\-\-\-- Which of the following best describes subsistence farming? A\) Using advanced machinery in agriculture B\) Focusing on a single agricultural commodity C\) Producing just enough food for the farmer and their family ✔ D\) Farming for commercial export \-\-\-\-\-\-\-\-\-- What makes developing countries vulnerable to natural disasters and market changes? A\) Strong transportation networks B\) Diversified agricultural exports C\) Single commodity dominance in exports ✔ D\) Advanced manufacturing industries **Economic basis of developed countries\ **The developed countries are those in which the natural resource is fully and\ properly utilized compared to the developing countries. Almost all of the\ developed countries are found in Europe and North America. There are also\ some developed countries in Asia such as Japan. They produce large amount of\ goods and services with high quality. The national economy of developed\ countries is mainly depends on secondary and tertiary economic activities. These\ sectors contributed the biggest share to their Gross Domestic Products and\ foreign exchange earnings. In the developed countries a large number of people\ are also employed on secondary and tertiary economic activities and only very\ small proportion of population engaged in primary sectors.\ A large scale manufacturing operation that employs highly modern and**\ **sophisticated technology and many people produces large quantity of goods such\ as clothing, automobiles, aircrafts, heavy machineries etc. and often shipped to\ other region of the world. Developed countries have also efficient transport\ services and highly connected networks. When transport system are efficient,\ they provide economic and social opportunities and benefits that results in\ positive multiplier effects such as better accessibility to market, employment,\ and additional investments.\ International trade in developed countries is dominated by the exportation of\ manufactured goods with high price. But they import primary goods with low\ price from the developing nations. This in turn makes their trade balance\ positive*.\ *As indicated above, the economic base of developed countries is mainly related\ with the secondary and tertiary economic activities. Hence, highly dependence\ on such activities enables them to rise per capital income, improve living\ standard, absorb excess population by providing employment, help solve balance\ of payment problems and reduce the economic dominance of agriculture.***\ *\ 2.3. Trade and market\ *At the end of this section, you will be able to:\ ***Describe the various flow patterns of goods, services and information;\ Analyze the contribution of trade to the Ethiopia economy;\ Explain the major types of trade;\ Evaluate the contribution of different economic sectors to Ethiopian\ export trade;\ Explain that the interaction of supply and demand determines price;\ Use graphs to show the market equilibrium point;\ Explain what conditions must exist for perfect competition to occur;\ Discuss the trade-off between consumer right and market supply;\ **2.3.1. The concept and historical development of trade and Market*\ ***Trade is a tertiary economic activity. It is the process of buying and selling or\ exchanging of commodities. The emergence of trade is related to the unequal\ distribution of resources that are essential to satisfying human needs. It also\ resulted from specialization of skills such as weaving, metalwork, tannery,\ pottery, etc.\ Due to the variety of their occupations, early people exchanged goods in the form Consumers Demand Supply\ Domestic trade Foreign trade Law of supply\ Competitive market Law of demand Equilibrium***\ ***of bartering. Later on, they started using metal, salt and paper money as the\ medium of exchange. By 1500B.C. the Canaanites had learnt to become\ ―middlemen in the trade between Egypt, Asia and Mycenae (Greece) while\ their descendants, the Phoenicians, traded five countries latter around and beyond\ the Mediterranean Sea. Until this time, trading was mainly the simple exchange\ of raw materials.\ Subsequently certain communities began to process some raw materials. Such\ exchange led to the emergence of European colonial powers who used the raw\ materials from their colonies to establish their own domestic industries. This in\ turn led to the beginnings of modern international trade. Trade developed further\ as new and improved forms of transport were introduced. In the recent decades\ there has also been a grouping together of trading partners to form common\ markets. For instance, the European Community (EC), European Free Trade\ Association (EFTA), Organization of Petroleum Exporting Countries (OPEC),\ Latin American Free Trade Association (LAFTA) etc. These trade associations\ enable goods to pass more easily and cheaply with in a large domestic or local\ market.\ **2.3.2. Types and benefits of trade*\ *Types of trade\ **There are two types of trade. These are:\ a. Domestic trade\ b. Foreign trade\ **a. Domestic trade:** is a type of trade which concerned with the exchange of\ commodities among people of a country. Such trade activities do not crossing\ the international boundaries. Commodities are exchanged either for**\ **commodities of equal value or for money. Transactions are carried on by\ merchants. Merchants are middle persons who take commodities from\ producers to consumers so that goods are exchange for money.\ The volume of internal trade largely depends on the:\ size of country\ variety of its resources\ number of its population\ living standard of the people\ development of transport and communication facilities\ *Figure 2.6: local periodic market\ ***b. Foreign trade:** It is also known as international or external trade. It is a kind\ of trade which covers long distances and takes place between countries and\ continents. This types of trade is realized in terms of import and export\ trades.\ **Import trade:** it is concerned with bringing goods and services from\ abroad or outside source. The import items can be machineries, food\ stuffs, beverage, textiles, chemicals etc.\ **Export trade:** it is concerned with sending of goods to other countries\ for sale. Export goods may include agricultural raw materials,\ minerals, industrial products etc.***\ *Pattern of world trade**\ The pattern of world trade is mainly influenced by two conditions. They are:\ **a. Types of commodities entering world market.** The major commodities\ entering world markets can be grouped in to:\  Primary goods such as raw materials and food stuffs\  Manufactured goods\ **b. The major world trading zones:** as indicated below by the figure the major\ world trading zones includes:\  **Western Europe:** leads all other regions in the annual volume of foreign\ trade. It is the most industrialized and most densely populated in the\ world.\  **North America:** It is second largest trading zone in the world next to\ Western Europe due to rich mineral resources and rapid rate of\ industrialization.\  Until to recent time the two zones produces the bulk of world industries**.\ **They account over 80% of the world trade and 90% of the world energy\ consumption.\  **Latin America:** It includes the Caribbean Sea, Central and South\ America. These are mainly produce food stuffs and raw materials and\ import manufactured goods.\  **Asia:** Japan is the most active trading nation in this zone. It export\ manufactured goods to Asia, Europe and North America. But recently,\ China has surpassed Japan not only as the more significant regional\ importer, but as a global importer as well. In addition, China‗s growing\ use of raw materials has enabled it to become a major destination for\ emerging market and developing economies‗ exports over the past\ decade. The Middle East countries are also well known for fuel and they*\ *export to the developed and developing countries.\  **Africa:** most countries in Africa export raw materials and minerals to\ Europe, North America & Asia. In turn they import manufactured goods\ and machineries from them.\ Until to the end of the second half of 20th century, trade was largely confined\ to a handful of advanced economies, notably the United States, Germany, and\ Japan. Since 1990, the global trading landscape had become more diversified\ to include several emerging market economies (EMEs), especially in East\ Asia. By 2010, China became the second largest trading partner after the\ United States, overtaking Germany and Japan. China‗s emergence reflects its\ rapid industrialization and growing trade openness---trade was 57 percent of\ GDP in 2008 in China, almost triple the ratio of the United States.***\ *Benefits of trade\ **Domestic trade refers to pure exchange activities within a national boundary.\ Domestic trade encourages the diffusion of knowledge, culture, and religion. As\ such, domestic trade fosters specialization in which each locality or region\ specializes in the production of specific commodities, thereby creating\ interdependence among regions.\ International trade, on the other hand, can be defined as the exchange of goods\ and services among citizens of independent or sovereign countries. Several\ benefits that can be identified with reference to international trade are as follows:\ 1. **Greater variety of goods available for consumption**: international trade\ brings in different varieties of a particular products from different countries.\ This gives consumers a wider array of which will not only improve their\ quality of life but also as a whole it will help the country grow.\ 2. **Promotes efficiency in production:** International trade promotes efficiency\ in production as countries will try to adopt better methods of production to\ keep costs down in order to remain competitive. Countries that can produce a\ product at lowest possible cost will be able to gain larger share in the market,\ therefore an incentive to produce efficiently arises.\ 3. **More employment:** International trade helps to generate more employment\ through the establishment of newer industries to cater to the demands of\ various countries. These help countries to bring down their unemployment\ rates.\ 4. **Consumption at cheaper price:** International trade enables a country to\ consume things which either cannot be produced within its borders or\ production may cost very high.\ 5. **Reduces trade fluctuation:** international trade reduces trade fluctuation by\ making the size of the market large with large supplies and extensive\ demand. The price of goods tend to remain more stable.\ 6. **Utilization of surplus products;** international trade enables different**\ **countries to sell their surplus products to other countries and earn foreign\ exchange.\ 7. **Foster peace and good will:** international trade foster peace, good will and\ mutual understanding among nations. Economic interdependence of\ countries often leads to close cultural relationship and thus avoid war\ between them..\ 8. **Diffusion of knowledge and culture**: international trade also encourages the\ diffusion of knowledge and culture because trade serves as a point of contact\ between people of different countries.\ **The contributions of economic sectors to Ethiopian export trade*\ ***Countries with higher international trade involvement achieve a higher and faster\ economic growth than those that has less involvement in international trade. This\ can be confirmed by comparing the remarkable success of the four East Asian\ Tiger economies (South Korea, Hong Kong, Singapore, and Taiwan) who\ followed export-led growth strategy. Ethiopia, like other developing countries,\ pursued the export-led growth strategy recently after years of implementation of\ the import substitution strategy during the Imperial and Derg regimes.\ Since the Ethiopia‗s economy is heavily depends on agriculture, the structure of\ Ethiopia‗s exports is dominated by agricultural products, which alone accounted\ for more than 80% of the export proceeds of the country. While the share of nonagricultural products in total merchandise exports is less than 20%. Among the\ agricultural products, coffee accounted for the lion‗s share: about 30% of total\ export earnings. Oil seeds, flowers and *chat* distantly follow second, third and\ fourth and they account, on average, for 14%, 10.6% and 10.5% of total exports,\ respectively. The five major export commodities, coffee, oil seeds, flower, chat **\ The contribution of export trade to the Ethiopian economy\ *****What are the contributions of export trade to the Ethiopia economy?\ ***Even though the composition of the country‗s export sector depends mainly on\ the single sector (agricultural), it still plays a significant role in the growth\ performance of the Ethiopian economy. This is because;\ 1. The revenue from export made the import of inputs possible that are crucial\ for development purposes thereby playing as an engine of growth to other\ sectors.\ 2. The revenue from exports enables the country to reduce the serious foreign\ exchange constraint faced that acts as a bottleneck for the growth of the\ economy.\ 3. Furthermore, trade encourages the diffusion of knowledge, culture, and\ religion. However, highly dependent on the primary sector as source of\ foreign exchange earnings is a sign of unhealthy economy, so the country\ expected to diversify its export items.\ **2.3.3. Market forces: supply and demand\ **Supply and demand are the forces that make market economies work. They\ determine:\  The quantity of each good produced and***\ ***  The price at which it issold.\ This section introduces the theory of supply and demand. It considers how\ buyers and sellers behave and how they interact with one another. It shows how\ supply and demand determine prices in a market economy. Before discussing\ how buyers and sellers behave, let\'s first consider more fully what we mean by\ the terms **market** and **competition*.\ *Market and Competition\ *****What is a market?\ ******What are the characteristics of a competitive market?\ ***A market is a place where a group of buyers and sellers of a particular good or\ service remain in contact. The buyers as a group determine the demand for the\ product, and the sellers as a group determine the supply of the product. Markets\ take many forms. Sometimes markets are highly organized, such as the markets\ for many agricultural commodities. In these markets, buyers and sellers meet at a\ specific time and place, where an auctioneer helps set prices and arrange sales.**\ **More often, markets are less organized. For example, consider the market for ice\ cream in a particular town. Buyers of ice cream do not meet together at any one\ time. The sellers of ice cream are in different locations and offer somewhat\ different products. There is no auctioneer calling out the price of ice cream. Each\ seller posts a price for an ice-cream cone, and each buyer decides how much ice\ cream to buy at each store. Nonetheless, these consumers and producers of ice\ cream are closely connected. The ice-cream buyers are choosing from the\ various ice-creams sellers to satisfy their hunger, and the ice-cream sellers are all\ trying to appeal to the same ice-cream buyers to make their businesses\ successful. Even though it is not organized, the group of ice-cream buyers and\ ice-cream sellers forms a market.\ ***What is Competition?\ ***Economists use the term competitive market to describe a market in which there\ are so many buyers and so many sellers that each has a negligible impact on the\ market price. Each seller of ice cream has limited control over the price because\ other sellers are offering similar products. A seller has little reason to charge less\ than the going price, and if he charges more, buyers will make their purchases\ elsewhere. Similarly, no single buyer of ice cream can influence the price of ice\ cream because each buyer purchases only a small amount. A perfectly\ competitive market or perfect competition is *a market structure in which there\ are a large number of producers (firms) producing a homogeneous product so\ that no individual firm can influence the price of the commodity*.\ In this section, we assume that markets are ***perfectly competitive.*** To reach this\ highest form of competition, a market must have the following characteristics:\ ***1. Homogeneous product:*** the goods offered for sale are all exactly the same.\ *i.e*., they are identical in all respects, including quality, colour, size, weight,\ design, etc\ ***2. Very large number of buyers and sellers:*** the buyers and sellers are so\ numerous that no single buyer or seller has any influence over the market***\ ***price.\ ***3. Free entry and exit of firms:*** Buyers and sellers are free to enter or leave the\ market at any time they like*.\ **4. Perfect knowledge:*** The buyers and sellers have perfect knowledge about the\ prices and costs prevailing in the different parts of the market.\ ***5. Perfect mobility:*** There is perfect mobility of goods and factors of production\ without any hindrance or obstruction.\ ***6. Absence of transport cost:*** In perfect competition, it is assumed that there is\ no transport cost for consumers who may buy from any firm. This ensures the\ existence of a single uniform price of the product.\ Not all goods and services, however, are sold in perfectly competitive markets.\ Some markets have only one seller, and this seller sets the price. Such a seller is\ called a **monopoly.** Your local cable television company, for instance, may be a\ monopoly. Residents of your town probably have only one cable company from\ which to buy this service. Some markets fall between the extremes of perfect\ competition and monopoly.