(a) Define international track (b) Describe any five benefits of international trade (c) What four factors limit trade between African countries and the United States of America (USA)?
Explanation
(a) Definition of international trade: It is the exchange of goods and services among nations of the world.(b) Benefits of international trade are: (i) Encourages specialization (ii) Enhances development (iii) Widens the scope of the market for investors (iv) Acquisition of marketing skills. (v) Encourages healthy competition. (vi) Revenue generation to government. (vii) Encourages development of ports. (viii) Stimulates doemstic production (ix) Exchange of skills and expertise. (x) Growth of industries. (xi) Provision of new products (xii) Fosters international co-operation. (xiii) Diffusion of ideas and innovations. (xiv) Employment creation (xv) Growth of ancilliary services e.g banking. (xvi) Accessibility to a variety of products. (xvii0 Improved standard of living. (xviii) income to traders (xix) Foriegn exchange earning. (c) Factors which limit trade between African countries and USA: (i) Strained international relation between countries. (ii) Inadequate production if goods. (iii) Low demand arising from low purchasing power. (iv) Political instability (v) High tarrifs. (vi) Inadequate foreign exchange, (vii) Cultural taboos. (viii) Language barriers (ix) Poor quality of products. (x) Unfavourable balance or trade. (xi) Absence of colonial ties (xii) Crude production techniques. (xiii) Competition with other geographical regions.
