Question 1
- Outline the characteristics of:
- domestic trade;
- international trade.
- Suggest three ways by which Tropical African countries can improve the volume of trade among themselves.
- Highlight three contributions of international trade to the economic development of Tropical African countries.
This was a popular question attempted by the candidates and most of them performed well. They were able to outline the characteristics of domestic and international trade. They were also able to highlight the contributions of international trade to the economic development of Tropical African countries. However, some of the candidates could not suggest ways by which Tropical African countries can improve the volume of trade among themselves. The expected answers were:
- specialization in production/diversification of products
- formation of economic blocks
- improved technology
- patronage of locally manufactured goods
- improved communication networks
- improved transcontinental transport networks
- improved infrastructure
- improved wages and salaries
- protection from foreign competition
- introduction of common currency/monetary union
- training and retraining of personnel/capacity building
- simplification of import export procedures
- improvement in the quality of products
- political stability/good governance
- provision of loans at low interest rates
- improved clearing procedures
- reduced dependence on colonial ties
- encouraging cross-border investment