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Trade in Sub Saharan Africa Short Answers

Level:
A Level, IB
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

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

Short Answers - Trade in Sub Saharan Africa

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.

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