Neco 2020 Commerce Question 2

Practice essay / theory question 2 from the 2020 Neco Commerce examination. This question covers Trade .

Neco 2020 Commerce Essay / Theory

Topic: Trade

Question 2 NECO • 2020 • COMMERCE • essay

The table below shows selected trade data for Nigeria in a recent year. - Export price of cocoa: $2.10 per kilogram - Import price of wheat: $0.45 per kilogram - Total export revenue from cocoa: ₦210,000,000 - Total import expenditure on wheat: ₦81,000,000 - Exchange rate: ₦410 = $1 Using this information, answer the following questions.

( a )

Calculate the quantity of cocoa exported and wheat imported, expressing your answers in tonnes (1 tonne = 1,000 kg).

( b )

Determine Nigeria's trade balance for these two commodities and state whether it is a surplus or a deficit.

( c )

If the government imposes a 10 % export tax on the revenue from cocoa, recalculate the trade balance.

( d )

Discuss two possible economic effects of the export tax on the Nigerian economy.

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This is Neco 2020 Commerce Question 2. It is one of the essay questions from the 2020 Neco Commerce examination.

The question covers Trade .

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