Classwork Series and Exercises {Geography – SS3}: World Trade

Geography, SS 3, Week 6

Topic: World Trade

Contents:

1. Definition of Trade
2. Division of International trade
3. Importance of international trade
4. Factors affecting international trade
5. Major commodities involved in international trade

Definition of Trade

Trade refers to buying and selling or exchange of goods and services between one region and another in the same country or between one country and another

Division of international trade

(a) Import trade involves the buying of goods and services from another country into your own country

(b) Export trade involve the selling of goods and services produced in one’s country to another country

Importance of International trade

1. International cooperation is fostered between two nations which are involved in international trade
2. New products that would otherwise have been unavailable in a country are provide
3. Jobs are provided through activities involved in the exportation from the sales or export of their goods to another country
4. Export goods or products are easily stimulated through increased production in the source region
5. Through international trade, skills and expertise are exchange between nations

Factors affecting international trade

1. The difference in climate favours the growth of different crops for export
2. The higher the differences in production of agricultural goods, the greater the volume of trade between two countries and vice versa
3. The need to earn foreign exchange helps to increase the volume of trade between nations
4. The higher the difference between prices of goods, the greater the volume of trade between two countries and vice versa
5. The higher the import duties imposed goods and services, the lesser the goods that will be imported and vice versa

Major commodities involved in International trade

(a) Nigeria’s export: Nigeria usually exports agricultural goods and minerals products to her foreign partners

(i) Mineral products: e.g petroleum or crude oil, tin, columbite etc

(ii) Agricultural goods: .g cocoa, groundnut, palm kernel, rubber, timber, cotton, hides and skin.

(b) Nigeria’s imports

(iii) Manufactured goods: Nigeria usually imports manufacture goods e.g computers, motor vehicles, tractors and machines etc

Factors which may limit international trade

1. Inadequate production of goods, either by importing or exporting country can limit
2. Their will be low sales when the other country’s demand for products is low
3. High tariff charged by certain country can affect the rate of import or exports of goods to that country

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