Question

<international trade>

<Answer up to 200 words>

Background

Imagine that you work for the World Bank and you have been called to Ghana to aid the new president to come up with a new international trade strategy.

You are told that the new government is interested in moving away from agriculture and into manufacturing. To do so, the government wants to pursuit a policy of import substitution industrialization (ISI).

You are given a brief about Ghana highlighting the following points:

- About half of Ghana’s population depends on agriculture, but Ghana still imports some of its food.

- The majority of Ghana's people live in rural areas and exist on a subsistence way of life.

- Ghana has one of the highest rates of income inequality in the world.

- Nearly half of the population is employed in agriculture.

QUESTION 1

Ghana imports and exports food from and to neighbouring Côte d'Ivoire. The latter nation is very similar to Ghana in most ways. It has a similar environment, a similar level of education, and similar institutional background. Would you argue that trade between the two countries can be explained by comparative advantage? Why or why not?

Ghana also exports food to Switzerland. The latter nation is very different to Ghana in most ways. Would you argue that trade between the two countries can be explained by comparative advantage? Why or why not?

- Clearly explains what theory describes the patterns of trade between Ghana and Cote d'Ivoire.

- Describes the conditions that would explain this pattern based on what the exported and imported goods are likely to be.

- Discusses patterns of trade between Ghana and Switzerland and explains what theory fits.

Answer 1

Let us First understand about the Method of growth between Ghana &  Côte d'Ivoire

Let's analyse deeply by country like Ghana and Cote d'Ivoire geogrphical areas of both companies are same but there is some difference in these countries like geographical difference, healthy issues, poverty, Internal issues and many more factors are affecting these two countries. Apart from this differentiation in cultural and political between these two countries.

Look at the any well versed study its clearly notice that when ever we are given African name in the economical affairs its defenetly not far good aspect to discuss with. Generally there is natural conservation that Africal countries defenitely on of the low lever of economic growth compared to others like Amercan Continetal or Europe.  

What is the exact reason why the each countries GDP level are different. There is lot of factors that should decide in the growth of GDP in each countries. In this perpectual situation economis can use the strategy of Sollow Growh model to asertain these gaps. Amount funds invested to the country is not favor in the long term growth in the economy. Impact is the negative version of this model. In any ecconomy long term growth rate will be derived from the usage of modern technologies adapted to the economy. For both countries like Ghana & Cote d' Ivory cost to give more importance in the production method to change the total increase in the Domestic product is the best suitable way these countries will adapted. In Sollow Model it explains the modern technologies related derived income and saving capacity of the country relation for the long term. For both countries total domestic product early of 60's was very low also in 80's also in Ghana had drastic decrease in the domestic product. After that these countries show some positive sign in the growth in total GDP. The relation between GDP & Investment is coefficent. The growth of GDP rate in the early of 90's was noted one.in both exports and imports. Where as Cote d'Ivory growth of GDP in the early 90's will make more impact in the more growth in the exports but the income derived is come down in that period.  

Starting of 20th Century the success of the economy of the africal countries are mainly based on growth in the exports and trade between these countries. Main exports of Africa countries like coffee, palm,coco, cotton and natural product. But in Ghana is the Gold. From the strategy of kolier, Hofler& Rohner a coutry should intrude into the internal violence it mail reason is that the variance in total ration of GDP with exports goods.  

Now Let's Discuss the pattern of Trade Between Ghana and Switzerland

In last year Quantity of the trade between these two countries are increased around 1.5 Billion dollar. Switzerland was mainly imported from Ghan is Gold & Coco. Ofcourse we all know about the differnece between socio economical and others for comparing these countries are huge difference. Switzerland always give support to Ghana for the good governence, try to prevent the communal violence. Ghana is one the biggest trading partner after South Africa. Ghana also import goods from Switzerland like Pharmaceuticals & Machinery. Besides this these two countries are also co operative in the education reserch and modernisation of technologies.  

Conclusion.

Above said details are clearly show the details about the total productivity of the coutries and how they utalise these productive to improve the total economic and other welfares in their respective country.