Theory question 108
International Economic OrganisationsSection B: answer three questions only from this section.
In what ways will the efficient functioning of the Economic Community of West African States (ECOWAS) hasten the economic growth of its member states?
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Removal of trade barriers enlarges the market and increases trade among members
A larger market allows large-scale production and economies of scale
Free movement of people, labour and capital improves allocation of resources and reduces unemployment
Joint projects (roads, telecommunications, energy) improve infrastructure
Specialisation according to comparative advantage raises efficiency
The bigger economic bloc attracts foreign investment
Stronger bargaining power in dealing with other countries and blocs
Co-operation in research, agriculture and industry
Compensation and development funds help poorer members
Explain how each benefit leads to growth.