Neco Model Questions Vol1 2020 Commerce Question 2

Practice essay / theory question 2 from the 2020 Neco Model Questions Vol1 Commerce examination. This question covers Trade, Terms of Trade, Tariffs, Trade Agreements .

Neco Model Questions Vol1 2020 Commerce Essay / Theory

Topics: Trade Terms of Trade Tariffs Trade Agreements

Question 2 NECO_MODEL_QUESTIONS_VOL1 • 2020 • COMMERCE • essay

The table below shows Nigeria’s export and import values (in billions of naira) for three consecutive years. | Year | Exports (₦ bn) | Imports (₦ bn) | |------|----------------|----------------| | 2022 | 4.5 | 6.3 | | 2023 | 5.2 | 7.1 | | 2024| 5.8 | 7.8 | 2024 figures are projected estimates. In 2023, imported automobiles accounted for 15 % of total imports.

Question Parts

( a )

Calculate the terms of trade (ToT) for each year as (Exports ÷ Imports) × 100 and comment on the trend observed.

( b )

If the government imposes a 10 % tariff on imported automobiles (which made up 15 % of total imports in 2023), estimate the immediate effect on the total import value, assuming quantities remain unchanged.

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About This Question

This is Neco Model Questions Vol1 2020 Commerce Question 2. It is one of the essay questions from the 2020 Neco Model Questions Vol1 Commerce examination.

The question covers Trade, Terms of Trade, Tariffs, Trade Agreements .

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