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Examine the pie chart above showing how profits from coffee production are distributed and answer each of the following questions - Junior Cycle Geography - Question 3C - 2016

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Question 3C

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Examine the pie chart above showing how profits from coffee production are distributed and answer each of the following questions. (i) What percentage of the profit... show full transcript

Worked Solution & Example Answer:Examine the pie chart above showing how profits from coffee production are distributed and answer each of the following questions - Junior Cycle Geography - Question 3C - 2016

Step 1

What percentage of the profits from coffee production are received by shippers and roasters?

96%

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Answer

According to the pie chart, shippers and roasters receive 55% of the profits from coffee production.

Step 2

Calculate X, the percentage of profits from coffee production received by retailers.

99%

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Answer

To find X, we know the total percentage must equal 100. Given that Growers receive 10%, Exporters receive 10%, and Shippers & Roasters receive 55%, we calculate:

X=100(10+10+55)=10075=25%X = 100 - (10 + 10 + 55) = 100 - 75 = 25 \%

Thus, retailers receive 25% of the profits.

Step 3

Explain two negative impacts of unfair trading on the economies of the developing world.

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Answer

  1. Decreased Revenue: Unfair trading practices often lead to lower prices for commodities such as coffee, which diminishes the income that local farmers receive. This reduction in revenue can stifle economic growth and worsen poverty levels.

  2. Market Instability: Unfair trade can create volatility in local markets, as farmers may struggle to predict income and are unable to plan for future investments. This instability can hinder long-term economic planning and development.

Step 4

Name an example of a country in the developing world affected by unfair trading.

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Answer

One example of a country in the developing world affected by unfair trading is Ethiopia.

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