Waec Model Questions Vol1 2018 Commerce Question 2

Practice essay / theory question 2 from the 2018 Waec Model Questions Vol1 Commerce examination. This question covers Trade Data Analysis, Percentage Growth, Terms of Trade, Tariff Impact .

Waec Model Questions Vol1 2018 Commerce Essay / Theory
Topics: Trade Data Analysis Percentage Growth Terms of Trade Tariff Impact
Question 2 WAEC_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • essay

The table below shows Nigeria's export and import values (in million Naira) and the corresponding export and import price indices for the years 2018‑2020. | Year | Export Value (₦ million) | Import Value (₦ million) | Export Price Index (base 2018 = 100) | Import Price Index (base 2018 = 100) | |------|--------------------------|--------------------------|--------------------------------------|--------------------------------------| | 2018 | 1,500 | 2,000 | 100 | 100 | | 2019 | 1,650 | 2,100 | 105 | 108 | | 2020 | 1,800 | 2,250 | 110 | 115 | Answer the following questions based on the data above.

Question Parts

( a )
Calculate the percentage growth in export values for 2019 and for 2020. State which year recorded the higher export growth.
( b )
Determine the average export growth rate for the period 2019‑2020.
( c )
Compute the terms of trade (ToT) index for each year and explain the observed trend.
( d )
Assume a 5 % tariff is imposed on all imports in 2020. Calculate the new import value for 2020 and the resulting trade balance (Export − Import). Discuss briefly one possible macro‑economic effect of this tariff.

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About This Question

This is Waec Model Questions Vol1 2018 Commerce Question 2. It is one of the essay questions from the 2018 Waec Model Questions Vol1 Commerce examination.

The question covers Trade Data Analysis, Percentage Growth, Terms of Trade, Tariff Impact .

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