Theory question 105
Transport, Trade and Tourism(a) What five advantages could be derived when countries trade with one another? (b) Highlight four factors which influenced the trade between Nigeria and Canada.
Show the model answer
Model answer
(a) Countries get goods they cannot produce; specialisation in what each produces best; foreign exchange earnings; larger markets so industries expand; jobs; exchange of technology and ideas; better international relations.
(b) Differences in natural resources and climate (Nigeria: oil, cocoa; Canada: wheat, machinery); different levels of industrial development; Commonwealth membership and common language; trade agreements and tariffs; transport/shipping links; demand and taste; foreign exchange availability.
Explanation
Trade happens because countries differ in what they produce.