Gce Model Questions Vol1 2023 Commerce Question 2

Practice essay / theory question 2 from the 2023 Gce Model Questions Vol1 Commerce examination. This question covers Trade .

Gce Model Questions Vol1 2023 Commerce Essay / Theory
Topic: Trade
Question 2 GCE_MODEL_QUESTIONS_VOL1 • 2023 • COMMERCE • essay

The table below shows Nigeria’s import and export values (in billions of naira) for three major commodities – Crude Oil, Cocoa and Cement – for the years 2021 and 2022. | Commodity | 2021 Imports | 2021 Exports | 2022 Imports | 2022 Exports | |-----------|--------------|--------------|--------------|--------------| | Crude Oil | 1.20 | 2.80 | 1.10 | 3.00 | | Cocoa | 0.45 | 0.30 | 0.50 | 0.35 | | Cement | 0.70 | 0.40 | 0.80 | 0.45 | Using this information, answer the following questions:

Question Parts

( a )
Calculate the trade balance (exports − imports) for each commodity in 2021 and 2022.
( b )
Identify which commodity gave the highest trade surplus and which gave the greatest trade deficit in 2022.
( c )
The government is considering a 10 % ad valorem tariff on imports of Cement. Re‑calculate the 2022 trade balance for Cement after the tariff and comment on the effect of the tariff on the overall trade position of that commodity.
( d )
Suggest two policy measures the government could adopt to improve Nigeria’s overall trade balance and briefly justify each measure.

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About This Question

This is Gce Model Questions Vol1 2023 Commerce Question 2. It is one of the essay questions from the 2023 Gce Model Questions Vol1 Commerce examination.

The question covers Trade .

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