Forces Indirectly Controlling Peripheral Areas like Ghana

Commodity Traders ·         Commodity traders in London and New York decide the price of cocoa and buy for large companies like Cadbury’s

·         Buyers trade in future markets for best price

·         Other countries also produce cocoa, so buyers will go to the cheapest place

·         Price fluctuates impacting exporting countries and their workers

·         Dependency theory- Ghana relies on UK and USA to buy their exports

Overseas Tariffs ·         Countries that produce and export cocoa commodities would want to develop its chocolate before exporting to make it more valuable BUT…

·         Most processing and packaging is done in Europe because import tariffs are much higher for processed cocoa

·         Therefore, Ghana is forced to export raw cocoa beans which are less valuable

World Trade Organisation ·         Ghana joined WTO in 1995 in attempt to increase global trade

·         However, WTO banned Ghanaian government subsidizing their farmers to grow crops for Ghanaian cities

·         As a result, Ghana now must import foreign food

·         Ghanaian farmers cannot sell produce domestically because imports are even cheaper