(a) What five advantages could be derived when countries trade with one another? (b) Highlight four factors which influenced the trade between Nigeria and C...

(a) Five advantages of countries trading with one another (international trade)

• Access to goods not produced at home: countries obtain raw materials, manufactured goods and services that they cannot produce themselves or produce only at high cost.
• Earning of foreign exchange: exporting goods brings in foreign currency used to pay for imports and to develop the economy.
• Encouragement of specialisation: each country concentrates on producing what it makes best (comparative advantage), raising efficiency and output.
• Wider market and higher income: producers sell to a larger world market, increasing production, employment and national income.
• Promotion of friendship and cooperation: trade fosters good political and cultural relations, and the exchange of ideas and technology between nations.
• Disposal of surplus: countries can sell off surplus produce instead of allowing it to waste.

(b) Four factors that influenced trade between Nigeria and Canada

• Difference in natural resources and products: Nigeria supplies mainly primary products (crude oil, cocoa, agricultural raw materials) while Canada supplies manufactured goods, machinery, wheat and technology, so each needs what the other has.
• Differences in level of industrial and technological development: Canada is highly industrialised and exports manufactured/capital goods, while Nigeria, less industrialised, imports them, encouraging exchange.
• Differences in climate and agriculture: Canada's temperate climate yields wheat and temperate produce, while Nigeria's tropical climate yields cocoa and tropical crops, so the two exchange complementary produce.
• Transport, communication and international agreements: availability of shipping and air links, together with trade agreements and Commonwealth membership, eased the movement of goods and payments between the two countries.
• Demand and purchasing power: the existence of demand and the ability to pay in each country supported the flow of trade.