Theory question 105
Transport, Trade and Tourism(a) With specific examples give four reasons why countries exchange goods and services
(b) Account for the low volume of trade between Nigeria and the rest of Africa.
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(a) Uneven distribution of natural resources (Nigeria sells oil, buys machinery); differences in climate, so different crops (cocoa from Ghana, wheat from Canada); differences in technology and skills (Japan exports electronics); specialisation and comparative advantage; surplus production and need for markets; differences in population and demand; to earn foreign exchange
(b) African countries produce similar primary goods; poor transport and communication links; different currencies and payment problems; tariffs and border barriers; colonial ties directed trade to Europe; low purchasing power; political instability; preference for foreign goods
Back each reason with a named country.