Trade in Sub Saharan Africa Short Answers
- A Level, IB
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 21 Mar 2021
The level of intra-regional trade in Sub Saharan Africa is much lower than for advanced, high income countries. What is meant by intra-regional trade. Explain two ways in which intra-regional trade in Sub Saharan Africa might be increased
What is meant by intra-regional trade
- Intra-regional trade is the exchange of virtually identical products between countries within the same region.
- For example in Sub Saharan Africa, nations might each trade similar products such as copper or cocoa beans.
- Intra-regional trade is measured as a % of the total value of trade.
Explain two ways in which intra-regional trade in Sub Saharan Africa might be increased
- Intra-regional trade is often held back by a lack of export diversification and inadequate infrastructure and residual tariff and non-tariff barriers
- SSA might increase intra-regional trade by attracting inward FDI to help build improved transport/logistics infrastructure such as improved motorways and high-speed rail links.
- This will lower the cost of getting products to markets within the continent.
- Diversification through pro-manufacturing policies - is important to establish new areas of comparative advantage.
- For example, Asia is building complex and large supply chains and trading more within the region as a result - with intra-regional trade climbing above 51% in 2013.