(a) Outline four factors which promote international trade between your country and the outside world (b) Explain three problems involved in the trade betwe...

(Country referred to: Nigeria.)

(a) Four factors that promote international trade

1. Differences in natural resources: Nigeria has crude oil, cocoa and solid minerals that other countries lack, while it needs machinery and manufactured goods produced abroad, creating a basis for exchange.
2. Differences in level of industrial/technological development: industrialised nations supply capital goods and technology that developing Nigeria cannot yet produce.
3. Availability of transport and communication links: shipping routes, ports, air links and modern communications make the movement of goods between countries possible.
4. Membership of international/economic organisations: membership of bodies such as ECOWAS, OPEC and the WTO removes barriers and encourages trade. (Others: surplus production for export, favourable government policy and a stable currency.)

(b) Three problems in trade with other West African countries

1. Similarity of products: most West African states export the same primary commodities (cocoa, palm produce, minerals), so they compete rather than complement one another.
2. Poor transport links between the countries: few good roads and railways connect the states, and rivers are interrupted by rapids, making the movement of goods difficult and costly.
3. Multiplicity of currencies and language/colonial barriers: different currencies, exchange controls and English/French divisions hinder smooth payment and dealing. (Also smuggling, trade restrictions and tariffs.)

(c) Three solutions

1. Diversify production so that member states produce different goods that can be exchanged instead of competing.
2. Improve inter-state transport by constructing trans-West African roads and railways and easing border crossings.
3. Adopt a single/common currency and harmonise trade policies (as pursued under ECOWAS) to simplify payments and remove tariff barriers.