ECO803 Report: International Trade and Logistics in Africa

This report delves into the realm of international trade, with a specific focus on the African continent. It examines the goals of traders, the advantages and disadvantages of free trade, and the critical need for improved labor productivity in Africa to enhance competitiveness. The report highlights the poor state of economic integration in Africa, challenges in trade liberalization, and stagnant per capita GDP in countries with increased export orientation. It explores the benefits of free trade such as lower business costs, increased purchasing power, and improved economic growth, while also acknowledging challenges such as protectionism. The report discusses value creation and destruction in trade, emphasizing the importance of efficient surplus goods disposal. It concludes with recommendations for improving trade competitiveness, including enhancing labor productivity, promoting competition, privatizing industries, and reducing monopoly power through regulation. The report is supported by numerous references to scholarly articles and publications.

International Trade
International Trade and Logistics
Student’s Name
Affiliation
Date

Introduction
Every trader has a trading goal as far as
international trade is concerned
My accomplishment as a trader is to building
up as much wealth as I can
Free trade is associated with both
advantages and disadvantages
Africa needs to improve its productivity in
terms of labor to increase competitiveness
labor

Why I selected Africa
Africa's economic integration is still poor
Africa is highly divided when it comes to economic
integration
The African continent has a poor reform record
Most Africa's trade liberalization and agricultural
markets have until today not been implemented
Most African countries having an increased export
orientation have experienced a stagnant per capita
GDP
Trade liberalization in Africa is important since the
continent has a lot of unexplored potential as far as its
trade services are concerned

Benefits gained by Africa in a free trade environment
Lower business costs
Acquiring an opportunity to outsource
different service departments
Increasing the continent's purchasing power
Increased profitability
Improved economic growth
Presents Africa with better economic
environments

Challenges faced by Africa in an anti trade
environment
Consumers are likely to pay more for
different goods and services.
suffering from the issue of protectionism in
an anti trade environment
limits the access of consumers to non-
domestic companies and foreign goods

Value Creation and Value destruction
Free trade creates value for different international
traders
Free trade allows voluntary trading processes
Exchanges are associated with earning a greater
value
Free trade allows exchange of raw materials and
surplus goods
Both raw materials and surplus goods are processed
or used for better purposes hence value creation
Poor disposal of surplus goods due to lack of market
is associated with value destruction

Conclusion
Ways of improving trade competitiveness
Improving labor productivity
Improving competition in the production
markets of different trading partners
privatizing different industries
Reduction of the monopoly power through
competition and regulation policies

References
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countries. Retrieved from;https://qz.com/africa/1231817/theres-a-crucial-link-between-better-road-networks-
and-international-trade-for-african-countries/
Ayres C.(2017).12 Advantages and Disadvantages of International Trade. Retrieved
from;https://vittana.org/12-advantages-and-disadvantages-of-international-trade
Ben A.N.(2014).Africa needs both aid and trade. Retrieved from;
https://www.un.org/africarenewal/magazine/august-2014/africa-needs-both-aid-and-trade
Chris G (2018). "44 African countries agree free trade agreement, Nigeria yet to sign". CNN.
 Joshua M (2019). "Africa in the news: African Continental Free Trade Agreement updates, Algeria's
president resigns, and Vodacom Tanzania executives face criminal charges". Brookings. Retrieved April 7,
2019.
Latif D.A (2019). "Africa's historic free trade deal now has enough countries signed up to go into force".
Quartz Africa.
Loes W (2018). "African Continental Free Trade Area: What you need to know". Al-Jazeera.
Martinuzzi B.(2018).What Are the Advantages of International Trade? Retrieved
from;https://www.americanexpress.com/en-us/business/trends-and-insights/articles/advantages-international-
trade/
Talkmore C (2018). "The legal and institutional architecture of the Agreement Establishing the African
Continental Free Trade Area". tralac Discussion. trade law centre. Retrieved March 28, 2018.
Vitez O.(2014). Pros of Free Trade. Retrieved from; https://smallbusiness.chron.com/pros-trade-3827.html
Wisehart D.(2018).Why does trade create value and how?. Retrieved from;https://www.quora.com/Why-does-
trade-create-value-and-how
Witschge L (2018). "African Continental Free Trade Area: What you need to know". Al Jazeera.