(a) Distinguish between internal trade and international trade
(b) Name four commodities of internal trade in Nigeria, - two originating from the north and two from the south
(c) Identify the factors that promote trade between the northern and southern parts of Nigeria
(d) What are the limitations to internal trade in Nigeria?
(a) Distinction between internal trade and international trade
Internal (domestic) trade is the buying and selling of goods and services within the borders of one country, using one currency and free of customs duties. International trade is the exchange of goods and services between different countries, involving different currencies, foreign exchange, customs duties and international agreements.
(b) Four commodities of internal trade in Nigeria
- From the north: cattle (beef), and onions/grains such as millet and beans.
- From the south: palm oil, and kola nut (also plantain/yam and fish).
(c) Factors that promote trade between northern and southern Nigeria
- Difference in climate and vegetation gives the two regions different products, so they exchange what each lacks.
- Good transport links (roads and railways) connect north and south, easing the movement of goods.
- A common currency and common government remove barriers to exchange.
- Large population and demand create ready markets in both regions.
- Specialisation/division of labour between farming, herding and manufacturing zones.
(d) Limitations to internal trade in Nigeria
- Poor and inadequate transport in some areas, raising costs.
- Lack of storage and processing facilities, so perishable goods spoil.
- Insecurity and multiple illegal road tolls/checkpoints.
- Similarity of products in some areas reduces exchange.
- Fluctuating prices and inadequate market information.