Observation

This was a very popular question among the candidates and the performance was just average.  Many of the candidates who answered the question could not outline the factors that favour trade between Nigeria and Great Britain.  The expected answers were:

• difference in agricultural products;
• difference in industrial products;
• difference in climate;
• difference in soil fertility;
• difference in natural resource endowment;
• difference in demands for goods and services;
• need for foreign exchange;
• difference in technology;
• colonial ties;
• comparative cost advantage;
• differences in prices of goods;
• favourable import duties.

While most of the candidates were able to name the commodities involved in trade between Nigeria and Great Britain, quite a good proportion of the candidates could not highlight the problems encountered in the trade between the two countries.  The problems expected from the candidates included:

• inadequate production of goods;
• low demand for products;
• high tarriff on goods;
• inadequate foreign exchange;
• low level of technology;
• changes in government policies;
• inadequate capital;
• mismanagement;
• political instability;
• port congestion;
• high transport  cost;
• fluctuation in foreign exchange rate;
• low level of savings.