Outline four factors which promote international trade between your country and the outside world.
(a) Differences in resources
(b) Some crops are suited to certain climatic conditions. Crops like cocoa, cotton etc. grow well under tropical condition while crops like wheat, barley, and oats grow in temperate climate.
(c) Differences in technical knowledge:- some countries like Germany, Japan, Britain, USA etc. have higher technical knowledge than some countries in West Africa to which their products are exported.
(d) Tariffs and import duties chargeable.
(e) Reliable transport and communication network.
(f) Favourable government policy on international trade.
(g) Differences in taste.
(h) Membership of the Commonwealth of Nations and other economic unions.
(i) Source of foreign exchange.
(j) Source of revenue.
(k) Stable government.
(I) Demand for commodities.
(B) Explain three problems involved in the trade between your country and other West African countries.
(i) Inadequate capital
(ii) Differences in languages
(iii) Similarities in products
(iv) Low level of technology
(v) Unfavourable balance of trade.
(vi) Low level of savings.
(vii) High cost of production
(viii) Poor transportation system.
(ix) Port congestion.
(x)Government policy.
(xi) Changes in political relationship.
(xii) Attachment to former colonial masters.
(xiii) Different currencies.
(xiv) Preference for imported goods.
(C) Suggest three solutions to the problems explained in (b) above.
1. Improved specialization in production.
2. Improved technology.
3. More patronage of locally made goods by other countries.
4. Protection from competition.
5. Improved savings capacity.
6. Construction of transcontinental transport network.
7. Liberalization of trade.
8. Improved port management.
9. Encouraging regional integration.
10. Political stability.
11. Use of local raw materials.