Theory question 112
International Economic Organisations(a) What is economic integration?
(b) Highlight any three problems of economic integration in West Africa.
Show the model answer
Model answer
(a) Economic integration is the coming together of two or more countries to remove trade barriers and co-ordinate their economic policies for mutual benefit, e.g. ECOWAS.
(b) Any three: different currencies and exchange controls; political instability and lack of commitment; similar products, so little trade among members; poor transport and communication links; loss of customs revenue; unequal sharing of benefits among members; language differences and colonial ties; smuggling; insecurity.
Explanation
Explain each problem briefly with reference to ECOWAS.