Observation

This question was also popular among the candidates and most of those who answered the question just scored relatively high marks. Many of the candidates could define the terms and reason Tropical African countries regulate trade in the (a) and (b) parts of the question and only few candidates were could explain the reasons for the decline in the export of cash crops in developing countries.
The expected answers include:

(a) Definition of the following terms associated with trade
(i) Capital goods:
- Are goods which are used for the production of other goods e.g. machinery, factories, chemicals etc
(ii) luxury goods:
- Are special goods which are not necessary and usually expensive but are bought as status symbols. e.g. golden watches, designer clothes etc.

(b) Reasons for which Tropical African countries regulate trade
- protection of infant industries
- to raise revenue
- to increase employment opportunities
- to correct unfavourable balance of payments
- to check dumping of harmful and dangerous goods
- boosting local production of goods/stimulating economic development
- to prevent importation of sub-standard goods
- helps to control capital flights
- to attract investors
- encourages entrepreneurship
- as retaliatory measure instrained international relationship
- encouraging self sufficiences
- encouraging patronage of locally produced goods
- to protect national security and interest.

(c) Reasons for the decline in the export of cash crops in developing countries
- pests and diseases
- reduction in output
- reduction in farm size
- concentration on production of staple foodstuffs/subsistence farming
- shortage of farm labour/rural-urban migration
- low commodity prices/price fluctuation
- negative attitudes of the youth towards farming
- increased local consumption due to increased population
- local processing of the crops/increased agro allied industries
- alternative source of revenue e.g. mining
- lack of incentives to farmers
- high cost of agricultural inputs
- establishments of import substitution industries
- climate change/prolong drought
- poor storage facilities.