If Karamo who lives in The Gambia imports goods from Senegal and later sells them in Guinea Bissau; Karamo is engaged in
Answer Details
Karamo is engaged in entrepot trade. Entrepot trade involves importing goods from one country and then re-exporting them to another country. In this case, Karamo imports goods from Senegal and sells them in Guinea Bissau. This type of trade is common in countries with free trade zones or areas with low tariffs, where goods can be imported and exported with minimal hindrance. The intermediary between the importing and exporting countries, in this case, Karamo, earns a profit by buying goods at a lower price in one country and selling them at a higher price in another country.