0:00:09 > 0:00:14Wanted for questioning - one teenager from the UK high street.
0:00:14 > 0:00:18On trial - their stuff. Captured!
0:00:18 > 0:00:20Name - Samantha. Age - 14.
0:00:20 > 0:00:24Wearing - jeans.
0:00:24 > 0:00:29So, Samantha, how many pairs of jeans do you own?
0:00:29 > 0:00:32I've got too many to count, to be honest.
0:00:32 > 0:00:34I'm in skinnies at the moment, cos all my friends have got skinnies,
0:00:34 > 0:00:40but I've got lights, I've got darks, I've got cropped, I've got ripped - I've got everything, really.
0:00:40 > 0:00:44Quite a wardrobe! And lots of countries helped make each pair.
0:00:44 > 0:00:47Ready for question one?
0:00:54 > 0:00:56Globalisation?
0:00:56 > 0:00:57Yes,
0:00:57 > 0:01:02now click and drag the icon to find out how jeans play a part in this.
0:01:04 > 0:01:10When you spend your cash on a new pair of jeans, the chances are they were designed in Europe,
0:01:10 > 0:01:14the cotton was grown and picked in the USA, shipped to India to be cut,
0:01:14 > 0:01:18dyed, textured, stitched, riveted, zipped, tagged and stickered.
0:01:18 > 0:01:22The buttons might come from China, the thread from Turkey or the zips from Africa.
0:01:22 > 0:01:26Boxed up, the jeans are sent around the world.
0:01:26 > 0:01:29All this travel, not great for the environment!
0:01:29 > 0:01:34But increased productivity can help cut poverty in less wealthy countries.
0:01:34 > 0:01:36And global competition makes prices lower.
0:01:36 > 0:01:38So, this is globalisation.
0:01:38 > 0:01:40But are we all winners?
0:01:42 > 0:01:44So what do you think, Samantha?
0:01:44 > 0:01:48I was really surprised. I thought it was only one or two countries that made them.
0:01:48 > 0:01:51Well, that's globalisation for you.
0:01:51 > 0:01:55But of course it can take its toll on the environment.
0:02:04 > 0:02:066,000?
0:02:06 > 0:02:08Yes, a staggering amount!
0:02:08 > 0:02:12Now click to find out what other ingredients go into a pair of jeans.
0:02:14 > 0:02:17For one pair of jeans, you may need the following...
0:02:17 > 0:02:20Thirsty cotton plants and a handful of workers.
0:02:20 > 0:02:256,000 litres of water - that's like flushing the loo 450 times.
0:02:25 > 0:02:29Pesticide and fertiliser - kills bugs and helps cotton grow.
0:02:29 > 0:02:34Once it's picked and processed, add one vat of dye to get them blue.
0:02:34 > 0:02:39For a worn look, sandblast with silica - can cause lung disease if inhaled.
0:02:39 > 0:02:43For a vintage look, add a splash of chemicals and bleaches.
0:02:43 > 0:02:49Perhaps a dash of formaldehyde to keep them wrinkle-free - also used to preserve corpses.
0:02:49 > 0:02:51- Serve with a trendy label. - Mmm, delicious!- But is it?
0:02:51 > 0:02:56All our clothes have some impact on workers and the environment.
0:02:56 > 0:02:59But does our appetite for changing fashion make it worse?
0:03:02 > 0:03:04What do you think about all those ingredients?
0:03:04 > 0:03:09I thought that it was really nasty, to be honest, because I really feel sorry
0:03:09 > 0:03:14for the workers who have to suffer all the nasty chemicals every single day.
0:03:14 > 0:03:17Well, many companies protect their workers, so it's safe.
0:03:23 > 0:03:24India?
0:03:24 > 0:03:28Yes. Click to find out why it's India.
0:03:30 > 0:03:32We're hooked on denim jeans.
0:03:32 > 0:03:36Three pairs are sold each second in the UK.
0:03:36 > 0:03:41And we import 50 million kilos of denim from around the world in a year.
0:03:41 > 0:03:44We can't get enough of jeans, because they're easy on our pockets.
0:03:44 > 0:03:47But at what cost to the people who made them?
0:03:47 > 0:03:49There's always been an ugly side to fashion.
0:03:49 > 0:03:55In the past, workers here were forced into long hours in sweatshops.
0:03:55 > 0:03:57But as fashion became big news,
0:03:57 > 0:04:02globalisation meant companies could cash in by moving their factories
0:04:02 > 0:04:07to developing countries, like India, where the workforce is big and the costs are low.
0:04:07 > 0:04:12Today, India is one of the largest exporters of textiles in the world.
0:04:12 > 0:04:16It means the economy is booming, with lots of people getting rich.
0:04:16 > 0:04:23But millions of people in India are still very poor - living on less than £1 a day.
0:04:23 > 0:04:26And the young are often the group most affected by poverty,
0:04:26 > 0:04:29with about 13 million children work illegally in India,
0:04:29 > 0:04:34sometimes in clothes factories like this one. Conditions can be hard.
0:04:34 > 0:04:39They often work long hours, even eat, sleep and live in the factory.
0:04:39 > 0:04:42It sounds tough, but many children don't have a choice.
0:04:47 > 0:04:51So a child working might keep a family from going hungry.
0:04:51 > 0:04:55The Indian government and charities are working hard to improve things for these children.
0:04:55 > 0:05:00We should stop buying these cheap clothes, right? Well, maybe not.
0:05:00 > 0:05:03If we boycott those stores that we like shopping in,
0:05:03 > 0:05:06what we're actually going to do is mean that people
0:05:06 > 0:05:08will lose their jobs and their livelihoods.
0:05:08 > 0:05:12So, this is complicated.
0:05:12 > 0:05:15If we stop spending, the poor could get poorer.
0:05:15 > 0:05:19But if adults got a decent wage, children might not have to work.
0:05:19 > 0:05:22So what can we do, as shoppers?
0:05:22 > 0:05:26We've got lots of power here actually, as consumers,
0:05:26 > 0:05:29because we matter to the companies, so what's important is
0:05:29 > 0:05:33for us as consumers, to put pressure on them to do the right thing.
0:05:33 > 0:05:38Many of our shops are signed up to ethical codes. Do you know which ones?
0:05:38 > 0:05:44And would you be willing to pay more for your jeans if it meant fair wages for workers?
0:05:44 > 0:05:47Would you, Samantha?
0:05:47 > 0:05:50Erm, I... Kind of.
0:05:50 > 0:05:55Cos I wouldn't really want to, because I don't really have a lot of pocket money.
0:05:55 > 0:05:58But then again, if it means the kids wouldn't have to work as much,
0:05:58 > 0:06:04I think I might probably buy more expensive jeans.
0:06:04 > 0:06:08Well, it's also down to our shops to source from ethical suppliers.
0:06:08 > 0:06:10Thanks, Samantha, you're released.
0:06:16 > 0:06:20Wanted for questioning - one teenager from the UK high street.
0:06:20 > 0:06:25On trial - their stuff. Captured!
0:06:25 > 0:06:27Name - Shane. Age - 16.
0:06:27 > 0:06:31In his wallet - cash.
0:06:31 > 0:06:34How much cash have you got on you?
0:06:34 > 0:06:36- Millions.- Nice.
0:06:36 > 0:06:38Have you got a bank account too?
0:06:38 > 0:06:40I do, but I'm not sure how much is in it, to be honest with you.
0:06:40 > 0:06:43Well, your savings in a bank grow with interest.
0:06:43 > 0:06:45Ready for question one?
0:06:50 > 0:06:51The Bank of England.
0:06:51 > 0:06:55Correct. Click and drag the first icon to find out
0:06:55 > 0:06:57how the rate affects spending habits.
0:07:00 > 0:07:02Interest rate - what is it?
0:07:02 > 0:07:06If you borrow cash from a bank, you have to pay the money back,
0:07:06 > 0:07:08plus a little extra, called interest.
0:07:08 > 0:07:15But if you save money in a bank, then the bank pays you interest, for effectively borrowing your cash.
0:07:15 > 0:07:18The rate of interest can affect our spending habits.
0:07:18 > 0:07:22If the rate is low, we borrow and spend.
0:07:22 > 0:07:24If the rate is high, we save.
0:07:24 > 0:07:27So who decides the interest rate?
0:07:27 > 0:07:29Well, the banks do,
0:07:29 > 0:07:34based on the rate set by the Bank of England, the UK's central bank.
0:07:34 > 0:07:39So the Bank can use the interest rate to control the flow of money...
0:07:41 > 0:07:44..and keep our economy stable.
0:07:46 > 0:07:49Are you more of a spender or a saver, Shane?
0:07:49 > 0:07:53Both really - I like to save so I can spend a lot.
0:08:01 > 0:08:02It lends it to other people.
0:08:02 > 0:08:05Correct. Play the next film to find out
0:08:05 > 0:08:08how banks make money from customers like you.
0:08:11 > 0:08:15Instead of storing it under the bed, most of us put money in the bank.
0:08:15 > 0:08:18So what does the bank do with our cash?
0:08:18 > 0:08:20Well, it puts it in a big pot with everyone else's money.
0:08:20 > 0:08:23But it doesn't stay there.
0:08:23 > 0:08:27Our money is lent out to other people as interest payments and loans.
0:08:27 > 0:08:29And how does a bank make a profit?
0:08:29 > 0:08:32It pays less interest to customers like you
0:08:32 > 0:08:36than it charges its borrowers, and it keeps the difference.
0:08:36 > 0:08:39Money makes money. Sounds like a piece of cake, doesn't it?
0:08:39 > 0:08:42But sometimes banks run into trouble.
0:08:42 > 0:08:45The banks' bank, The Bank of England, keeps a look out.
0:08:45 > 0:08:50It can give banks emergency loans, so the flow of lending and borrowing doesn't dry up.
0:08:50 > 0:08:55It also prints our banknotes. There are about two billion notes in circulation -
0:08:55 > 0:08:57in our pockets, tills, safes and banks.
0:08:57 > 0:09:01And maybe even under the bed.
0:09:02 > 0:09:07Two billion bank notes - plenty to go round, you'd think.
0:09:07 > 0:09:11I'm actually quite surprised by it. Cos in a recession people say money is hard to come by, and hard to get,
0:09:11 > 0:09:14but with two billion about, it doesn't really make sense.
0:09:14 > 0:09:19Yes, good point. But in a recession, the flow of money slows.
0:09:26 > 0:09:28Two years?
0:09:28 > 0:09:31Unlucky - it's six months.
0:09:31 > 0:09:34Now click to find out about global recession.
0:09:37 > 0:09:39Recession - what's it all about?
0:09:39 > 0:09:44Well, we're officially in recession when our economic activity slows down over six months.
0:09:44 > 0:09:48This activity is measured by the GDP - that's Gross Domestic Product.
0:09:48 > 0:09:53Yeah, it might sound boring. But hang on, it's pretty important.
0:09:53 > 0:09:56The GDP tells us how healthy our economy is
0:09:56 > 0:10:00by measuring the value of all the stuff we make and supply in the UK.
0:10:00 > 0:10:03The more stuff we buy, the more we make.
0:10:03 > 0:10:06But in a recession, this activity slows down.
0:10:06 > 0:10:10Companies make less money so can't afford as many staff.
0:10:10 > 0:10:12So unemployment rises.
0:10:12 > 0:10:15If you are out of work, you'll probably spend less.
0:10:18 > 0:10:21Even if you do have a job, you're likely to be more careful.
0:10:21 > 0:10:25It's a vicious circle. Less work means less money to spend.
0:10:25 > 0:10:29Less spending means less demand for products, which means less work.
0:10:29 > 0:10:33Round and round it goes. Things could get tricky if you have a mortgage.
0:10:33 > 0:10:37A mortgage is a loan you take out to buy a house and pay off gradually.
0:10:37 > 0:10:41If you earn less and can't keep up payments, you could lose your house.
0:10:41 > 0:10:47In a global economy like ours, problems in one country can have a ripple effect.
0:10:47 > 0:10:51Two organisations try to limit the damage of a global money crisis.
0:10:51 > 0:10:56The G20, a group of the world's biggest economies that club together.
0:10:56 > 0:10:59But not everyone's in the club. And the International Monetary Fund,
0:10:59 > 0:11:02which can lend money to its member countries.
0:11:02 > 0:11:07In 2007, some American banks were too risky with their lending.
0:11:07 > 0:11:11They lent money they didn't have, and what's worse, to people who couldn't pay it back.
0:11:11 > 0:11:13This got the banks into trouble.
0:11:13 > 0:11:17The problems quickly spread to other banks around the world,
0:11:17 > 0:11:22reducing how much people could borrow and spend.
0:11:22 > 0:11:25This led to global recession.
0:11:25 > 0:11:29In the UK, some banks were affected so badly they collapsed.
0:11:29 > 0:11:31Taxpayers' money was used to keep them in business
0:11:31 > 0:11:36or "bail" them out. Was that the right thing to do?
0:11:36 > 0:11:39Do you think the banks should have been bailed out, Shane?
0:11:39 > 0:11:42Yeah and no. Yeah, because it's the sort of helpful thing to do
0:11:42 > 0:11:44to help each other out, and no, because,
0:11:44 > 0:11:49if the banks have been silly enough to lend money out without really caring,
0:11:49 > 0:11:53then if you bail them out, they're just going to carry on doing the same thing.
0:11:53 > 0:11:55A hard decision. Even world leaders couldn't agree.
0:11:55 > 0:11:57Thanks, Shane! You're released.
0:12:02 > 0:12:06Wanted for questioning - one teenager from the UK high street.
0:12:06 > 0:12:08On trial - their stuff.
0:12:08 > 0:12:10Captured!
0:12:10 > 0:12:15Name - Manpreet. Age - 16.
0:12:15 > 0:12:18In his pocket - mobile phone.
0:12:18 > 0:12:21How often do you get a new phone, Manpreet?
0:12:21 > 0:12:24I probably get a new phone every year or so,
0:12:24 > 0:12:27but compared to my friends, that's nothing -
0:12:27 > 0:12:30they get it every five months, they always want the latest thing.
0:12:30 > 0:12:34Everyone likes to have brand-new technology.
0:12:34 > 0:12:36Now, ready for a question?
0:12:44 > 0:12:4865 million, I think...
0:12:48 > 0:12:52It's actually 30 million, but that's still a lot.
0:12:52 > 0:12:57To find out what happens when you chuck your old phone, click and drag the first icon.
0:12:59 > 0:13:03Keeping up with fashion means we change our mobiles as often as our hairstyles.
0:13:03 > 0:13:07That's 30 million new phones a year in the UK.
0:13:07 > 0:13:10What happens when you discard your mobile for a slicker model?
0:13:10 > 0:13:17When we chuck 'em, our phones are sorted into electronic waste, or e-waste, and often sent illegally
0:13:17 > 0:13:20to Asia or Africa, forming "e-mountains"
0:13:20 > 0:13:22at makeshift recycling plants.
0:13:22 > 0:13:27They're burnt by workers to extract precious metals, releasing deadly toxins.
0:13:27 > 0:13:29Should we stop buying so many phones?
0:13:29 > 0:13:31Or crack down on illegal dumping?
0:13:31 > 0:13:35The United Nations has come up with a solution.
0:13:35 > 0:13:38It wants to allow this e-waste trade to continue,
0:13:38 > 0:13:41but train people how to extract the metals safely
0:13:41 > 0:13:46and effectively, so that more metals can be recycled for money.
0:13:46 > 0:13:50Do you recycle old phones, Manpreet?
0:13:50 > 0:13:55Unfortunately, no, I just tend to leave it in a shoebox or something.
0:13:55 > 0:13:59Tut-tut. The metals in your phone can be valuable and used again.
0:14:08 > 0:14:10An African mine.
0:14:10 > 0:14:14Yes. Now click to find out how demand for precious metals
0:14:14 > 0:14:18- is linked to a deadly conflict in Africa.- OK.
0:14:20 > 0:14:25A mobile phone contains more than 45 chemical elements from all over the world.
0:14:25 > 0:14:27Some phones include metals
0:14:27 > 0:14:29from Africa's Democratic Republic of Congo.
0:14:29 > 0:14:32Tungsten - that's what makes your phone vibrate.
0:14:32 > 0:14:35Tantalum - it stores electricity.
0:14:35 > 0:14:36No sound without it.
0:14:36 > 0:14:39Tin - helps make the circuit board.
0:14:39 > 0:14:42And a bit of bling. Gold coats the wires.
0:14:42 > 0:14:45These minerals start life peacefully in the deep, dark mine.
0:14:45 > 0:14:49But on the surface, DRC has a long, troubled history of war.
0:14:49 > 0:14:52And the minerals play a part in it.
0:14:52 > 0:15:00The deadliest war since World War Two took place in DRC from 1998 to 2003. So there's peace now?
0:15:00 > 0:15:01Don't bet on it.
0:15:01 > 0:15:04The government's army is still fighting rebel soldiers.
0:15:04 > 0:15:06In war, normal economic practices
0:15:06 > 0:15:07get shot to pieces.
0:15:07 > 0:15:15In DRC, that meant companies left, scared of the violence, leaving local miners unprotected.
0:15:15 > 0:15:19In swept the armed rebels, who took control of the mines, mafia-style.
0:15:19 > 0:15:25These rebels terrorised the locals and forced poor miners to pay them tax.
0:15:25 > 0:15:30The gangs then smuggle the minerals out the country for extra cash.
0:15:30 > 0:15:31So what can be done?
0:15:31 > 0:15:36DRC's government has taken action and banned mining in three provinces.
0:15:36 > 0:15:38But mining makes up more than a quarter
0:15:38 > 0:15:43of the DRC's economic output, so they need a long-term solution.
0:15:43 > 0:15:47They could nationalise the mines, so the state owns them.
0:15:47 > 0:15:51Or persuade companies that had left to come back, raising tax.
0:15:51 > 0:15:55Or organise workers into cooperatives for protection.
0:15:55 > 0:16:01But to add to the pile of problems, mineral resources in the DRC will run out soon.
0:16:01 > 0:16:02What will they do then?
0:16:02 > 0:16:05Western governments are doing something too -
0:16:05 > 0:16:11writing new laws, so mobile phone companies take responsibility for where components come from.
0:16:11 > 0:16:13It's a step in the right direction.
0:16:13 > 0:16:18But there are no easy solutions to bring stability to the DRC and its people.
0:16:20 > 0:16:22What did you think of that film?
0:16:22 > 0:16:27I was quite shocked, because, like, people are suffering just for,
0:16:27 > 0:16:29just for something silly like a mobile phone,
0:16:29 > 0:16:34Well, now I've got a more positive story for you, also from Africa.
0:16:34 > 0:16:37Is this true or false?
0:16:41 > 0:16:44- True?- Yes!
0:16:44 > 0:16:48Now click to find out about a revolutionary new phone service.
0:16:50 > 0:16:55Did you know, a lack of bank accounts in Kenya has slowed its economy?
0:16:55 > 0:16:59But now that's changing, thanks to aid money and the mobile phone!
0:16:59 > 0:17:04Only 19% of Kenyans have a bank account, but 70% have a mobile.
0:17:04 > 0:17:10Not just to gossip! In 2007, a new service was set up with aid money.
0:17:10 > 0:17:14Now people can load money onto their phone and, with a simple text,
0:17:14 > 0:17:18send money to someone else's phone, hundreds of miles away
0:17:18 > 0:17:20or in the local supermarket.
0:17:20 > 0:17:26It's really changing people's lives and boosting Kenya's economy.
0:17:26 > 0:17:30Does it surprise you aid money helped pay for this technology?
0:17:30 > 0:17:35Yeah, that kind of did surprise me actually, because I thought that was, like, I thought that aid money
0:17:35 > 0:17:40was supposed to be towards, like, food and, like, to help towards poverty.
0:17:40 > 0:17:45Well, this does help to reduce poverty in a different kind of way.
0:17:45 > 0:17:47Thanks, Manpreet! You're released.
0:17:52 > 0:17:56Wanted for questioning - one teenager from the UK high street.
0:17:56 > 0:17:58On trial - their stuff.
0:17:58 > 0:18:01Captured!
0:18:01 > 0:18:02Name - Sophie.
0:18:02 > 0:18:05Age - 14.
0:18:05 > 0:18:08In her hand bag - make-up.
0:18:08 > 0:18:12So, Sophie, what kind of make-up do you like buying?
0:18:12 > 0:18:15I like buying eye shadow, and, if so,
0:18:15 > 0:18:20I like buying illuminous pink or sparkly brown, because I think it makes me look nice.
0:18:20 > 0:18:22You're not the only one.
0:18:22 > 0:18:24Beauty is big business worldwide.
0:18:24 > 0:18:26Prepare for a question.
0:18:29 > 0:18:32China?
0:18:32 > 0:18:36Yes. To find out why China's beauty market is booming,
0:18:36 > 0:18:37click the top icon.
0:18:40 > 0:18:46Every year, we use more and more make up, mascara and moisturiser to make ourselves look and feel better.
0:18:46 > 0:18:49It's the norm, right? Not for everyone.
0:18:49 > 0:18:53While the West was full of long-haired hippies, China was a make-up desert.
0:18:53 > 0:18:58When the communist leader Chairman Mao came to power, he banned anything that stunk of perfume,
0:18:58 > 0:19:01covered up pimples or made hair change colour,
0:19:01 > 0:19:06saying they were too decadent for a country of revolutionary workers.
0:19:06 > 0:19:09A world of no lip gloss or hair products?
0:19:09 > 0:19:13Hard to imagine here, where there's big money in an industry
0:19:13 > 0:19:15aimed at making us look...beautiful?
0:19:15 > 0:19:20But fast forward a few decades, and China has an £11 billion beauty market.
0:19:20 > 0:19:22How on earth did that happen?
0:19:22 > 0:19:25Chairman Mao died in 1976.
0:19:25 > 0:19:31The doors slowly opened to the world's economy, sending make-up brands wild with excitement.
0:19:31 > 0:19:36A billion new customers with more lips than America and Europe combined.
0:19:36 > 0:19:38That means money - and lots of it.
0:19:38 > 0:19:43Right now, the urban Chinese are among the world's biggest consumers of beauty products.
0:19:43 > 0:19:48In the cities, they're gobbling up luxury goods as fast as they can get them,
0:19:48 > 0:19:54although it's a very different story in rural China, where hundreds of millions still live in poverty.
0:19:54 > 0:20:00But as Chinese demand grows, global brands are changing for new tastes.
0:20:00 > 0:20:03Using ingredients like black sesame and ginseng.
0:20:03 > 0:20:05The doors don't just swing one way.
0:20:05 > 0:20:09The Chinese make lots of things that the rest of the world wants to buy.
0:20:09 > 0:20:12That's partly why the country's wealth is rising so fast.
0:20:12 > 0:20:14China isn't just a top shopper in beauty products.
0:20:14 > 0:20:17The country now has a huge buying power full stop.
0:20:17 > 0:20:20It's changing the shape of the global economy.
0:20:22 > 0:20:28Do you know, China is on track to overtake America as the world's global economic superpower?
0:20:28 > 0:20:32- Quite a thought!- Well, I've only heard about rich people in China,
0:20:32 > 0:20:36but for the poor people, it's quite sad that they can't buy make-up.
0:20:36 > 0:20:41Yes, there's a big gap between the rich urban Chinese and the rural poor.
0:20:47 > 0:20:48Coal?
0:20:48 > 0:20:50There's no coal in your lippie.
0:20:50 > 0:20:53But there are other surprising ingredients.
0:20:53 > 0:20:55Click to find out.
0:20:57 > 0:21:02One lipstick can be made up of over 25 ingredients, from all over the world.
0:21:02 > 0:21:06It might include petroleum jelly, from oil rigs in the Gulf of Mexico.
0:21:06 > 0:21:12Collagen, the stuff celebs inject to get rid of wrinkles, which comes from the skin of Australian cows.
0:21:12 > 0:21:16Palm oil, farmed by plantation workers in Indonesia.
0:21:16 > 0:21:19And natural ingredients like American aloe vera...
0:21:21 > 0:21:22..Chinese beeswax...
0:21:22 > 0:21:26and cocoa butter from farms in Africa's Cote d'Ivoire.
0:21:26 > 0:21:28Some farmers of natural products like these
0:21:28 > 0:21:32are protected by fair trade schemes, so get better working conditions,
0:21:32 > 0:21:34training and a fair price guarantee.
0:21:34 > 0:21:39The first fair trade beauty products arrived in the UK in 2009,
0:21:39 > 0:21:43and 140 products now bear the hallmark. Do yours?
0:21:44 > 0:21:48So, Sophie, do you buy fair trade?
0:21:48 > 0:21:53I would buy fair trade chocolate, but I've never heard about fair trade make-up.
0:21:53 > 0:21:54Aren't they more expensive?
0:21:54 > 0:21:59That's true - fair trade can cost more. It's your choice.
0:22:04 > 0:22:05Inflation?
0:22:05 > 0:22:09Well done. Click to find out how inflation works.
0:22:12 > 0:22:17Inflation affects how much money you spend on something.
0:22:17 > 0:22:21If your parents bought posh perfume in 1980, it cost £19.
0:22:21 > 0:22:23But now it's £60. Why?
0:22:23 > 0:22:28Ingredient costs might have increased or workers' wages gone up.
0:22:28 > 0:22:32Or, if we're feeling flush, we start buying more, so there's less to go round.
0:22:32 > 0:22:36The less of something there is, the more valuable it is.
0:22:36 > 0:22:39But imagine if the price kept going up and up uncontrollably!
0:22:39 > 0:22:45- In steps the Bank of England, to make it more expensive to borrow cash.- Thank you!
0:22:45 > 0:22:47So we all have to tighten our belts.
0:22:47 > 0:22:52Demand for perfume decreases, there is a bigger supply, and the price goes down.
0:22:53 > 0:22:57Did you know the bank could impact the cost of things we buy?
0:22:57 > 0:23:01No, that's quite surprising. I thought it was the shops that made up the prices.
0:23:01 > 0:23:02Well, now you know!
0:23:02 > 0:23:05Thanks, Sophie! You're released.
0:23:10 > 0:23:14Wanted for questioning - one teenager from the UK high street.
0:23:14 > 0:23:17On trial - their stuff.
0:23:17 > 0:23:20Captured! Name - Jack.
0:23:20 > 0:23:24Age - 16.
0:23:24 > 0:23:26In his pocket - cigarettes.
0:23:26 > 0:23:29You know it's illegal to buy cigarettes at your age, Jack?
0:23:29 > 0:23:31You have to be 18.
0:23:31 > 0:23:33Yeah, I don't really buy them for myself -
0:23:33 > 0:23:35I kind of, like, nick them off my mates.
0:23:35 > 0:23:40And it's a filthy habit and also very dangerous to your health.
0:23:40 > 0:23:43Yeah, I know that, but I don't smoke all the time.
0:23:43 > 0:23:45I'm what's called a social smoker.
0:23:45 > 0:23:47Question one coming up.
0:23:54 > 0:23:57- 75%.- Correct.
0:23:57 > 0:24:01Now to find out why cigarettes are taxed so heavily, click and drag the top icon.
0:24:03 > 0:24:09When people buy a pack of cigarettes, about 75% of the money goes straight to the government.
0:24:09 > 0:24:14The rate is set in the budget by the UK's money keeper, the Chancellor of the Exchequer.
0:24:14 > 0:24:17Britain has one of the highest tax levels in the world for cigarettes,
0:24:17 > 0:24:22allowing the government to raise £10 billion in tax each year.
0:24:22 > 0:24:25Sounds a lot, doesn't it? But it doesn't meet the costs.
0:24:25 > 0:24:30Britain's annual smoking bill is £13.5 billion.
0:24:30 > 0:24:31Health is the big expense -
0:24:31 > 0:24:34treating sickly smokers.
0:24:34 > 0:24:37Also days off work and loss of productivity.
0:24:37 > 0:24:40And we have to pay to clean up butts and fire damage.
0:24:40 > 0:24:45In fact, every cigarette smoked costs the country 6.5 pence.
0:24:45 > 0:24:49So should smokers have to cough up even more in tax?
0:24:50 > 0:24:53So, Jack, should smokers have to pay more in tax?
0:24:53 > 0:24:57Yeah, I guess it's only fair, but some people might not be able to afford it.
0:24:57 > 0:25:01Well, then, more people will be forced to kick the habit.
0:25:01 > 0:25:04Better for people's health and our economy.
0:25:11 > 0:25:13The black market.
0:25:13 > 0:25:17Yes. Now play the film to find out about cigarette smuggling.
0:25:20 > 0:25:23Cigarettes are one of the world's most widely smuggled products,
0:25:23 > 0:25:26with one in every ten trafficked by criminal gangs.
0:25:26 > 0:25:30Many are well-known brands, snuck past border police to dodge tax.
0:25:30 > 0:25:34Cheap cigarettes! But at whose expense?
0:25:34 > 0:25:36Governments worldwide lose out on billions in tax,
0:25:36 > 0:25:39money that could help pay for hospitals, health and housing.
0:25:39 > 0:25:41Counterfeit crime is big business too,
0:25:41 > 0:25:48with fake branded cigarettes often stuffed full of cheap poisons, then smuggled worldwide for big profit.
0:25:48 > 0:25:50Even more dangerous to smoke than normal.
0:25:50 > 0:25:52It calls for a worldwide crackdown.
0:25:52 > 0:25:56But how do you police such a global crime?
0:25:58 > 0:26:02It's a big problem, with one in every ten cigarettes sold on the black market.
0:26:02 > 0:26:08I never realised how big it was and, yeah, I have seen some fake cigarettes brands around.
0:26:08 > 0:26:12Well, it's illegal and comes at a cost to us all.
0:26:18 > 0:26:20500 billion.
0:26:20 > 0:26:23Right. It's a huge figure.
0:26:23 > 0:26:26Now find out how governments worldwide are tackling this.
0:26:29 > 0:26:32It's the fight of the century.
0:26:32 > 0:26:34On one side, the rich and powerful tobacco industry.
0:26:34 > 0:26:38On the other, governments with power to make laws.
0:26:38 > 0:26:41Once, tobacco companies had free rein to advertise,
0:26:41 > 0:26:45spending billions each year on ads to tempt us. And it worked!
0:26:45 > 0:26:46Up went sales and profits.
0:26:46 > 0:26:49But in the last decades, there's been a government clampdown.
0:26:49 > 0:26:53In Britain, we have banned all tobacco advertising,
0:26:53 > 0:26:55outlawed tobacco sponsorship,
0:26:55 > 0:26:58made health warnings on packs compulsory,
0:26:58 > 0:27:00raised the legal age to buy cigarettes to 18,
0:27:00 > 0:27:03and banned smoking in public places.
0:27:03 > 0:27:06The government has fought hard and is winning.
0:27:06 > 0:27:10Fewer people smoke, and cigarette sales are down.
0:27:10 > 0:27:13It's not just the British government that's acted.
0:27:15 > 0:27:19The European Union launched a campaign that kick-started control laws across Europe.
0:27:21 > 0:27:23There's also a global push led by WHO,
0:27:23 > 0:27:27which created a worldwide guide for tougher tobacco laws.
0:27:27 > 0:27:32But in many poorer parts of the world, laws are still lax,
0:27:32 > 0:27:37and cigarette companies are free to advertise and attract new smokers.
0:27:37 > 0:27:42So smoking in these countries is on the rise, causing spiralling health problems
0:27:42 > 0:27:45and an expensive habit for people already on the poverty line.
0:27:45 > 0:27:49The thing is, tighter regulation isn't in every country's interests.
0:27:49 > 0:27:54Some, like Malawi, depend on growing tobacco to make money.
0:27:54 > 0:28:00Others don't want to lose out on high tax and aid gifts donated by rich tobacco companies.
0:28:00 > 0:28:03The figures for smoking are scary.
0:28:03 > 0:28:06There are 1.3 billion smokers worldwide,
0:28:06 > 0:28:10and tobacco kills one in ten adults globally.
0:28:10 > 0:28:12And the cost to the world economy?
0:28:12 > 0:28:14500 billion each year.
0:28:14 > 0:28:18Yet tobacco companies continue to reap huge profits.
0:28:18 > 0:28:22But just how far should governments go in regulating things that are bad for us?
0:28:22 > 0:28:25Or should it be personal choice?
0:28:25 > 0:28:28It's the same dilemma with alcohol and even fast food.
0:28:28 > 0:28:32It's a never-ending tussle between industry, government and us.
0:28:34 > 0:28:38So, Jack, should there be tougher regulations against smoking worldwide?
0:28:38 > 0:28:43I do think it's a personal choice, but I disagree with more poorer countries
0:28:43 > 0:28:48that can't even afford food and yet they're spending money on cigarettes.
0:28:48 > 0:28:51So will you now quit this nasty habit?
0:28:51 > 0:28:53It's difficult. I'll think about it.
0:28:53 > 0:28:55Thanks, Jack! You're released.
0:28:59 > 0:29:02Subtitles by Red Bee Media Ltd
0:29:02 > 0:29:05E-mail subtitling@bbc.co.uk