Theory question 108
International TradeSection B
The bulk of West African foreign trade is directed away from Africa to Europe and America. What are the reasons for this?
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Reasons:
1. Colonial ties: trade links set up with former colonial powers continue.
2. Similar products: West African countries produce similar primary goods, so they have little to sell to each other.
3. Need for manufactured and capital goods available only in Europe and America.
4. Europe and America provide large markets and better prices for raw materials.
5. Poor transport and communication links between African countries.
6. Different currencies and lack of convertibility within Africa.
7. Trade barriers, tariffs and political instability among African states.
8. Aid, loans and investment from Western countries tied to trade with them.
Colonial history and similar exports are the key points.