(a) Give any three reasons each for the (i) high volume of trade between Nigeria...
(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.
Explanation
(a)(i) Reasons for high volume of trade between Nigeria and the USA.:
(a) The two countries have different types of climate and different agricultural products
(b) USA has high technology and therefore concentrates on manufacturing while Nigeria does not manufacture enough
(c) Nigeria needs agricultural machinery which are manufactured in USA.
(d) The raw materials produced in Nigeria are needed in factories in USA
(e) Nigeria has large markets for some goods manufactured in USA, e.g. computer, electronics, etc.
(ii) Reasons for low volume. of trade between Nigeria and Ghana:
(a) Similar ecological characteristics, hence the products are similar
(b) With the same level of technology, their products are identical.
(c) Poorly developed communication link
(d) High taste for goods of European origin
(e) High tariff
(f) Different currencies
(g) Political instability
(b) Ways of improving trade between Nigeria and West African countries:
(i) Specialization in production
(ii) Use of the same currency
(iii) Improved relationship between the countries
(iv) Improvement of communication network
(v) Removal of tariff barriers/investment promotion
(vi) Economic freedom from old colonial masters.