SECTION 1

1.Explain five benefits that will accrue to a country due to use of pipeline in transporting

oil products

2.Explain five advantages that a country may experience from imposing trade restrictions in

trading partners.

3.Explain five benefits that the Kenyan government desires to achieve by being a member of

the East African Union

4.Discuss five reasons why many countries tend to prefer free trade

5.Discuss five causes of the persistent balance of payment disequilibrium in East African

countries

6.Explain five measures that the Government of Kenya may take to control her persistent

Balance of payment deficit

7.Explain five advantages of economic integration to a member state.

SECTION 2

1.Write in full the following abbreviations:

i) Franco

ii)O.N.

iii)C.W.O

iv)I.O.U

2.State any four economic benefits Kenya may derive from the recently revived East African

cooperation (E.A.C)

3.Highlight four trade measures that can be undertaken by a country to correct balance of

paymentdisequilibrium

4.Highlight four difficulties encountered in international trade

5.The following statement shows the various level of economic integration. Against this statements,

give the level that suits each:

StatementLevel

(a) Member countries imposes common tariffs on non-

member states

(b) Member countries have joint economic institution

and common monetary and fiscal policies

(c) Member countries agree to either abolish or relax

tariffs and other barriers

(d) Member countries allow free movement factors of

production

6.Outline four ways in which Kenya benefits by being a member of Common Market

for East and Southern Africa States (COMESA)