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ECONOMICS NOTES ➖➖➖➖➖➖➖➖➖➖ PROVIDED BY THE BEST ONLINE EXAM ASSISTANT BY EAGLE EYE CEO THE BEST WAEC HELPER 08023343546 WITH MR EAGLE EYE TEAM YOUR SUCCESS IS MY PRIORITY ONLY THOSE WHO ARE REGISTERED IN MY PRIVATE GROUP WILL HAVE THE VERIFIED WAEC QUESTIONS ON THE EVE OF THE EXAM ➖ ➖ ➖ ➖ ➖ ➖ ➖ ➖ ➖ TRADE Buying and selling or exchange of goods and services. TYPES OF TRADE Domestic/Internal/Home/Local trade -Buying and selling of goods within a country's borders. It's classified into: 1. Wholesale Trade-purchasing of goods in bulk from producers and selling them to retailers. 2. Retail Trade-buying goods from wholesalers and selling them to individual consumers. REGIONAL TRADE -Trade between countries found in the same geographical region. INTERNATIONAL TRADE -Exchange of goods and services at the global level. It's classified into: 1. Export Trade-selling of goods and services to foreign countries. 2. Import Trade-buying of goods and services from other countries. 3. Bilateral Trade-exchange of goods and services between two countries. 4. Multilateral Trade-exchange of goods and services between many countries. 5. Visible Trade-trading in tangible goods. 6. Invisible trade-trading in services. BALANCE OF TRADE -Difference in value of countries visible exports and imports. It's of 2 types: 1. Adverse Balance of Payments-in which value of visible imports exceeds that of visible exports. 2. Favourable Balance of Trade-in which value of visible exports exceeds that of visible imports. BALANCE OF PAYMENT -Difference in value between visible and invisible exports and imports. FACTORS INFLUENCING TRADE 1. ➖Difference in natural resources which makes it necessary to trade with other countries or areas in order to obtain goods and resources which are not found in their area. 2. ➖population whereby large population or one with high purchasing power provides a large and ready market for goods and services encouraging trade. 3. ➖Trade occurs when there is demand and supply of goods and services. i. If the supply is low and the demand is high, prices go up stimulating trade. ii. When the supply is more and the demand is low, prices go down discouraging trade. 4. ➖Adequate and efficient means of transport and communication encourage trade because bulky goods can be transported quickly and over long distances from producers to consumers. Poor transport discourages trade due to the difficulty in getting goods to the market in time. Goods can be supplied faster when traders communicate with suppliers without having to travel a lot which reduces travelling cost and hence increasing profits. 5. ➖Trade restrictions can encourage or discourage trade. They are of two types: Tariffs- taxes or duties levied by a country on a particular type of commodity imported in order to protect its domestic industries. Quotas-specified quantities of goods which must not be exceeded during importation or exportation. Trade Agreements-agreements made between countries regarding which commodities are exported or imported from specific countries. Total Ban-complete restriction of importation of a particular commodity in order for a country to protect its domestic industries due to political hostility. 6. ➖Trading Blocks or economic Unions🔫👊/Associations among countries aimed at promoting regional trade among members states can encourage trade between members and discourage trade with non-members. Free Trade Associations-liberalise trade among member countries by lowering and abolishing tariffs. Common Market Associations-liberalise trade among members and raise tariffs for non-members. 7. ➖Trade can only take place between countries only when they are in good terms. Hostility leads to total ban as was the case with s. Africa during apartheid and Iraq when it attacked Kuwait and failed to destroy weapons of mass destruction. 8. ➖Existence of aids to trade e.g.