Neco Model Questions Vol1 2023 Commerce Question 2

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

Neco Model Questions Vol1 2023 Commerce Essay / Theory

Topic: Trade

Question 2 NECO_MODEL_QUESTIONS_VOL1 • 2023 • COMMERCE • essay

The table below shows Nigeria’s export and import performance for the three most recent fiscal years. Year | Export Value (₦ million) | Import Value (₦ million) | Export Price Index (base 2015=100) | Import Price Index (base 2015=100) --- | --- | --- | --- | --- 2020 | 4,500 | 6,200 | 102 | 108 2021 | 5,100 | 6,800 | 108 | 112 2022 | 5,850 | 7,400 | 115 | 119

Question Parts

( a )

Calculate the average annual growth rate of export values over the period 2020‑2022. Show your method.

( b )

Determine the trade balance for each year and state whether Nigeria recorded a surplus or a deficit.

( c )

Compute the terms of trade for each year, expressed as (Export Price Index / Import Price Index) × 100, and comment on the trend.

( d )

If the government introduces a 15 % tariff on imported crude oil, discuss qualitatively how this policy is likely to affect (i) the trade balance and (ii) domestic consumers of petroleum products.

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About This Question

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

The question covers Trade .

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