Observation

Most candidates who attempted this question did not perform well in part 6a of the question. However, the performance in part 6b was good.

The expected responses to the question include:

 6.(a)Ways Tourism Enhances the Growth of Commerce

i.Tourism creates employment in the country that is being visited by the tourists.
ii. There is the development of the economy of both countries through inter-cultural exchange.
iii. Businesses in the host country would benefit heavily from tourism.
iv. Tourism assists in extending markets for local products in another country without the huge expenses required for the manufacturer to go abroad.
v. Countries invest a lot of money in the infrastructural development of tourist areas and open up the place for more business.
vi. Tourism creates bond between the travellers’ country and the country being visited thereby creating peace which is important for commerce to thrive.
vii.It attracts investment to places of tourist attraction.
viii.It assists in extending markets for local products in another country.

  (b) Factors that Adversely Affect Foreign Trade

i.The cost of freight whether by air, sea or rail is high.
ii.The risk of loss or damage is high as a result of long distance hence high insurance cost is necessary.
iii.Customs regulations and tariffs limit the extent of foreign trade.
iv.The need to learn international law makes trade difficult because business is not regulated by the law of the importing country
v. Fluctuations in the country’s currency may hinder foreign trade.
vi.Communication becomes difficult as a result of differences in languages and the need to hire interpreters involves extra cost which affects international trade.
vii.The differences in weights and measures creates problem of conversion among countries.
viii.Differences in cultural and religious beliefs adversely affect foreign trade.
ix.Disagreements and wars among nations hinder trade.
x.Devaluation of trading country’s currency adversely affects trading partners purchasing power.
xi.Restriction of trade in any forms adversely affects foreign trade.
xii.Introduction of subsidy by the government of some countries adversely affects foreign trade.