Theory question 102
Transport, Trade and Tourism(a) Define the term balance of trade. (b) Outline five factors that promote trade between Tropical Africa and the developed world. (c) Highlight four benefits of international trade to the economy of Tropical Africa.
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(a) Balance of trade is the difference between the value of a country's visible exports and the value of its visible imports over a period, usually a year.
(b) Differences in natural resources and climate; Africa produces raw materials needed by developed industries; Africa needs manufactured goods and technology; colonial and historical ties; trade agreements and economic blocs; good shipping and communication links; foreign investment; need for foreign exchange.
(c) Foreign exchange earnings; access to goods not produced locally; employment; government revenue; transfer of technology and ideas; stimulates production and specialisation; foreign investment; international cooperation.
Define with the word 'visible'.