Theory question 104
Transport, Trade and TourismGive reasons for the (a) low volume of trade between Nigeria and other countries of Africa (b) high volume of trade between Nigeria and Japan
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(a) African countries produce similar primary goods (cocoa, groundnuts, oil); poor transport links between countries; different currencies and exchange problems; trade barriers and customs formalities; political instability and border disputes; colonial trade ties directed to Europe; low purchasing power
(b) Nigeria exports raw materials (crude oil) that Japan lacks; Japan exports manufactured goods (vehicles, electronics, machines) Nigeria needs; good sea transport links; large Nigerian market; trade agreements and Japanese investment and credit
Trade grows when countries produce different, complementary goods.