Theory question 105
Transport, Trade and Tourism(a) Account for the inter-dependence in trade between Nigeria and Britain (b) What four factors may limit this trade? (c) State three ways by which the trade between the two countries can be improved
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(a) Colonial ties and common language; Nigeria exports raw materials (crude oil, cocoa, rubber) Britain needs; Britain exports manufactured goods (machinery, vehicles, chemicals) Nigeria needs; Commonwealth membership; established banking and shipping links.
(b) Fall in prices of primary products; trade restrictions and tariffs; foreign exchange shortages; competition from other countries; political problems; poor quality of some exports.
(c) Trade agreements and lower tariffs; diversifying and processing exports; improving quality of goods; trade fairs and missions; stable policies.
Interdependence means each country needs what the other produces.