Neco Model Questions Vol1 2018 Commerce Question 2

Practice essay / theory question 2 from the 2018 Neco Model Questions Vol1 Commerce examination. This question covers Trade .

Neco Model Questions Vol1 2018 Commerce Essay / Theory

Topic: Trade

Question 2 NECO_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • essay

A Nigerian exporter of cocoa beans and an importer of wheat flour are analysing the impact of recent changes in world market prices.

Question Parts

( a )

Calculate the terms of trade index for the year 2022 and for the year 2023. (Terms of trade = (export price per tonne ÷ import price per tonne) × 100)

( b )

Determine the percentage change in the terms of trade between 2022 and 2023 and interpret what this change means for the cocoa exporter.

( c )

In 2023 the government imposes a 5 % tariff on wheat‑flour imports. Compute the total tariff revenue collected from the wheat‑flour imports that year.

( d )

Discuss two possible macro‑economic effects of the observed change in the terms of trade and the introduction of the tariff on Nigeria’s balance of payments.

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About This Question

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

The question covers Trade .

View More Neco Model Questions Vol1 2018 Commerce Questions More Neco Model Questions Vol1 Practice Questions Back to Questions

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