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How the economy worksInternational TradeEthicsGlobalisation

AQA GCSE · Question 17 · How the economy works

Explain one ethical issue faced by UK producers when trading with other countries.

How to approach this question

Think about the potential negative impacts of international trade on people or the environment in other countries. Identify one such issue and briefly explain why it presents an ethical dilemma for a UK producer.

Full Answer

One ethical issue is sourcing materials from countries with poor labour standards. UK producers may be able to buy cheaper raw materials or components from factories where workers are paid very low wages or work in unsafe conditions, creating a moral conflict between profit and worker welfare.
When UK producers engage in international trade, particularly with less economically developed countries, they can face several ethical issues. These include: - **Labour standards:** Sourcing from suppliers who exploit workers through low wages, long hours, unsafe conditions, or the use of child/forced labour. - **Environmental standards:** Importing from countries with lax environmental regulations, contributing to pollution, deforestation, or climate change. - **Unfair trade practices:** Using their buying power to push down prices paid to small-scale farmers or producers in developing countries to unsustainable levels. These situations create a conflict between the producer's goal of maximising profit and their social and moral responsibilities.

Common mistakes

Describing a general problem with trade (like transport costs) rather than an ethical issue.

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