A Detailed Comparison of Foreign Trade: China and Ghana's Economies

This essay provides a comparative analysis of foreign trade between China and Ghana, highlighting similarities and differences in their trade agreements, export/import commodities, and overall economic impact. Both countries are members of the WTO and the Trade Facilitation Agreement, and share trading partners like the United States. However, China's export and import volumes significantly exceed Ghana's, with China focusing on manufactured goods and Ghana on primary commodities like gold, petroleum, and cocoa beans. While both countries engage in foreign trade, China's global position as a major exporter contrasts with Ghana's reliance on primary commodity exports. Desklib provides access to similar essays and study tools for students.

International Trade
Students Name
Institution

Foreign Trade 1
Introduction
Undoubtedly, China and Ghana foreign trade has been beneficial for all nations in the
sense that both countries import and export products from each other thus increased
revenue .Primarily, China enjoys a competitive advantage in manufactured goods whereas Ghana
enjoys resource endowment of primary commodities thus making trade between them profitable
(Frimpong, 2012). Owing to China‘s productivity advantage, Ghana imports most of China’s
manufactured goods whereas China imports primary commodities from Ghana which is richly
endowed with primary goods thus boosting foreign trade between the two nations. Worth noting,
both countries are members of regional and international trading blocs and agreement .Notably,
the two countries do share commonalities and disparities.
Similarities
Noteworthy, China and Ghana have entered into similar foreign trade agreement.
Specifically, both countries have ratified the Trade facilitation Agreement (World Trade
organization, 2017). Basically, the trade agreement seeks to expedite the clearance of goods and
customs cooperation among various countries. Over the years, the two countries have shared
trading partners for their imports and exports. Specifically, in the year 2016, both countries
shared the United States of America as one of their top trading country(World Bank group,
2018).In boosting foreign trade, both China and Ghana have joined international economic
bodies such as WTO to enjoy international trade benefits such as reduced tariffs and customs.

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Differences
Notably, in the year 2017, Chinese export was lower than Ghana’s exports for the same
year, at 18.48 percent and 28.69 percent respectively (Country economy.com, 2018). However,
Chinese imports were higher than Ghanaian imports for the year 2017 at 1,841,889 against
Ghana’s 12,588.5 M. $ respectively (Countyeconomy.com, 2018).Worth noting is that the
Chinese economy was considered the world largest exporter in the year 2016.. Majorly, China
exports computers, telephones, machinery among other manufactured products. Alongside
exports, the Chinese economy top import is petroleum, gold and iron ore(OEC,2018).In the
Ghanaian economy, some of its topmost exports are gold, petroleum and cocoa beans whereas it
imports includes automobiles, cement and petroleum(OEC,2018).
Remarkably, the export and import values of goods and services in the Chinese economy
has been on the rise since the year 2013 to 2017(Santandertrade.com, 2018).As at 2013, the
value of Chinese imports stood at 329,491 Million .dollars to 1,841,889 M dollars in
2017.overall, China imports and exports differ from Ghana‘s imports and exports .However, they
both deal in gold and petroleum as commodities in foreign trade.
Conclusion
Overall, both the Chinese and Ghanaian economy flourish on foreign trade. Whereas the
Chinese economy is among the topmost largest global exporter, it sources most of it’s primary
commodities from African countries such as Ghana .Commonly, both countries are members of
WTO and Trade facilitation agreement. However, both countries top commodities for exports
and reports differ. Majorly, China exports manufactured commodities and imports primary

Foreign Trade 3
commodities whereas Ghana exports more primary commodities and top exports manufactured
goods additionally, they share the United States of America among top trading partners.
However, the Chinese foreign trade returns are higher than the Ghanaian economy foreign trade
volume and returns.

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References
Countryeconomy.com. (2018).County comparison China vs Ghana. Retrieved from
https://countryeconomy.com/countries/compare/china/ghana
Frimpong, S. (2012). Research on Relationship between China and Ghana: Trade and Foreign
Direct Investment (FDI).Journal of Economics and Sustainable
development.Vol.3, No.7.
OEC. (2018).China. Retrieved fromhttps://atlas.media.mit.edu/en/profile/country/chn/
Santandertrade. (2018).Chinese foreign trade in figures. Retrieved from
https://en.portal.santandertrade.com/analyse-markets/china/foreign-trade-
in-figures
World Bank Group. (2018). China exports, imports and trade balance By Country and Region.
Retrieved from
https://wits.worldbank.org/CountryProfile/en/Country/CHN/Year/2016/
TradeFlow/EXPIMP
World Trade Organization. (2017).Ghana ratifies the Trade Facilitation Agreement. Retrieved
from https://www.wto.org/english/news_e/news17_e/fac_04jan17_e.htm