(a) (i) What is internal trade? (ii) Name four commodities involved in internal trade in Nigeria. (b) Highlight four factors that encourage internal trade i...

(a)(i) What is internal trade?

Internal trade (domestic or home trade) is the buying and selling of goods and services within the boundaries of a single country, using the country's own currency and moving goods from areas of surplus to areas of demand.

(a)(ii) Four commodities involved in internal trade in Nigeria

• Foodstuffs such as yam, rice, beans and garri.
• Livestock and animal products such as cattle, goats and hides.
• Manufactured/consumer goods such as textiles, soap and cement.
• Cash and forest products such as kola nut, palm oil, timber and vegetables.

(b) Four factors that encourage internal trade in Nigeria

• Regional differences in resources and production: the north produces grains and livestock while the south produces roots, palm produce and manufactures, encouraging exchange between zones.
• Improved transport network: roads, railways and waterways link producing and consuming areas, allowing goods to move cheaply.
• Large population and market: a big and growing population creates high demand for goods and services.
• Common currency and language of trade, and a single political unit: the naira and shared trading languages (Hausa, Yoruba, Igbo, English) ease transactions and remove internal tariff barriers.

Other valid points: presence of markets and middlemen, banking and credit facilities, division of labour/specialisation.

(c) Three problems limiting internal trade in Nigeria

• Poor transport and infrastructure: bad roads, few railways and poor storage raise costs and cause spoilage of perishable goods.
• Inadequate capital and credit facilities: many traders operate on a small scale and cannot expand.
• Insecurity and multiple taxation/levies: armed robbery, unrest and illegal tolls on highways discourage the movement of goods.

Other valid points: seasonal fluctuation and price instability, lack of market information, poor storage/preservation.