Theory question 103
Transport, Trade and Tourism(a) Define international trade. (b) Describe any five benefits of international trade. (c) What four factors limit trade between African countries and the United States of America (USA)?
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(a) International trade is the exchange of goods and services between countries.
(b) Countries obtain goods they cannot produce; earns foreign exchange; encourages specialisation; widens markets; government revenue from duties; transfer of technology and ideas; jobs; good international relations; raises living standards.
(c) Distance and high freight costs; African exports are mostly raw materials of low value; strict US quality and health standards; tariffs and quotas; competition from other suppliers; low purchasing power in Africa; currency problems; political instability.
Explain each benefit briefly.