Theory question 103
Transport, Trade and Tourism(a) Give any three reasons each for the (i) high volume of trade between Nigeria and the U.S.A. (ii) low volume of trade between Nigeria and Ghana. (b) Suggest any four ways of improving trade between Nigeria and other West African countries.
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(a)(i) Nigeria and the USA produce different goods (complementary): Nigeria sells crude oil and cocoa, the USA sells machinery and manufactured goods; the USA is a large rich market; good shipping and air links; long-standing trade agreements and investment by US oil companies; Nigeria's demand for American technology.
(ii) Nigeria and Ghana produce similar goods (cocoa, palm produce, timber); different currencies and exchange problems; poor road and rail links; trade barriers, border closures and tariffs; colonial ties directed trade to Europe; political disagreements; smuggling.
(b) Remove tariffs and border barriers (ECOWAS free trade); build roads and railways linking the countries; common currency or easy exchange; diversify production so countries have different goods to sell; stable governments and good relations; trade fairs and information.
Contrast complementary production (high trade) with similar production (low trade).