WASSCE FOR PRIVATE CANDIDATES 2019 FIRST SERIES PAPER 2

QUESTION 8

(a) What is economic integration?
(b)Distinguish between a free trade area and a customs union.

(c) Describe two advantages and two disadvantages of free trade area.

Observation

This question was the least attempted by candidates. The few candidates that attempted it were unable to define economic integration and had no idea of what free trade area and customs union was all about and as a result could not describe their advantages and disadvantages in the (c) part of the question. Most candidates that attempted this question performed poorly. 

These candidates were expected to give the following answers to score higher marks:

 

((a)Economic integration is a form of economic cooperation among countries with the aim of achieving higher economic growth and development. 

                                              
(b)  A free trade area is a form of economic integration in which restrictions on trade are abolished within the area, among members, while member countries maintain their own tariff policies with countries outside the area While in a customs union restrictions on   trade among members are removed while maintaining a common tariff policy with members outside the union.


(c) Advantages of a free trade area:
(i)The  market for goods produced within the area is widened.
(ii)With an enlarged market, large scale production is made possible.
(iii)Competition is promoted with its attendant efficiency.
(iv)here is no loss of political sovereignty by member states.
(v)As a result of the wide market, foreign investments are attracted.