Observation

 

This is one of the data response question and it was attempted by few candidates. The question required the candidates to calculate the value of visible exports, balance of trade, current account balance of a country, list the items of invisible exports or imports of a country and determine if the country is developed or developing. Most candidates who attempted this question were able to calculate the value of visible exports and the current account balance but were unable to calculate the balance of trade and list the items of invisible export as they could not classify ‘bauxite’ as either visible export or import, hence they could not obtain the maximum mark.
The candidates were expected to provide the following answers to score higher marks.

(a)        Value of visible exports = crude oil + groundnuts + bauxite
= $120,000,000 + $ 40,000,000 + $ 80,000,000  = $ 240,000,000

 

(b)        Balance of trade = total value of visible exports  –  total value of visible imports
Visible exports = $240,000,000
Visible imports  = rice and flour + petroleum product + vehicles and
accessories
= $ 140,000,000 + $ 80,000,000 + $ 50,000,000

                                       = $ 270,000,000                                          
Balance of trade = $ 240,000,000 - $ 270,000,000
=  - $ 30,000,000                    

(c)        Invisible exports include tourism and shipping & insurance.

Invisible imports include banking services and freight & insurance.

(d)       Current account balance = value of total exports – value of  total  imports

= ($ 345,000,000) – ($ 370,000,0000)
=  - $ 25,000,000

(e)        The country is a developing one.This is because:
(i)         its exports are made up  mainly of unprocessed primary products.
(ii)        its imports are made up mainly  of finished goods.               
(iii)       the value of imports exceeds exports.