Evaluate four ways in which African Continental Free Trade Area can provide business opportunities for Africa...

 

Transcribed Image Text:

Evaluate four ways in which African Continental Free Trade Area can provide business opportunities for Africa industrialization. (10 marks) Ghana and Nigeria produces cocoa and coffee. The man-working hours for the two countries in the production of cocoa and coffee are indicated in table 1 below: Table 1: Countries' Man-working hours for Cocoa and Coffee Production Cocoa Coffee Man working hours per kilo Man working hours per kilo 30 Country Ghana 15 Nigeria Before trade between the two countries, Nigeria produces 9,000 tons of cocoa and 6,000 tons of Coffee and Ghana also produces 8,000 tons of cocoa and 5,000 tones of coffees. 10 15 Required: (i) Which country has absolute advantage in the production of cocoa and why? (1 marks) (ii) Which country has absolute advantage in the production of coffee and why? (1 marks) (iii) Using Ricardo's Comparative Advantage Theory, indicate the product that each of the countries should produce. (2 marks) (iv) Calculate the total production of cocoa and coffee by Ghana and Nigeria when Ricardo's Comparative Theory is applied. (2 marks) (v) Critically evaluate the usefulness of Ricardo's Comparative Advantage Theory in the 21st Century. (4 marks) Evaluate four ways in which African Continental Free Trade Area can provide business opportunities for Africa industrialization. (10 marks) Ghana and Nigeria produces cocoa and coffee. The man-working hours for the two countries in the production of cocoa and coffee are indicated in table 1 below: Table 1: Countries' Man-working hours for Cocoa and Coffee Production Cocoa Coffee Man working hours per kilo Man working hours per kilo 30 Country Ghana 15 Nigeria Before trade between the two countries, Nigeria produces 9,000 tons of cocoa and 6,000 tons of Coffee and Ghana also produces 8,000 tons of cocoa and 5,000 tones of coffees. 10 15 Required: (i) Which country has absolute advantage in the production of cocoa and why? (1 marks) (ii) Which country has absolute advantage in the production of coffee and why? (1 marks) (iii) Using Ricardo's Comparative Advantage Theory, indicate the product that each of the countries should produce. (2 marks) (iv) Calculate the total production of cocoa and coffee by Ghana and Nigeria when Ricardo's Comparative Theory is applied. (2 marks) (v) Critically evaluate the usefulness of Ricardo's Comparative Advantage Theory in the 21st Century. (4 marks)

Answer rating: 100% (QA)

ANSWER 1 The African Continental Free Trade Area can provide opportunities for Africa industrialization by reducing trade barriers and making it easier for African businesses to trade with each other ... View the full answer