Answer to Question #106069 in Economics of Enterprise for pfunzo mmatshela

Question

discuss how the exchange rate policies of the dominant economies in the three regions (SADAC, AEC, and COMESA) have affected crossborder trade. Substantiate your discussion with examples.

Answer 1

The main problem in this region is the need to overcome the problem overlapping membership - nearly two-thirds of the twenty-six countries that make up 36 members of COMESA, EAC and SADC, either are already in the customs union and participate in negotiates an alternative customs union with the one to which they belong or are in the process of negotiations two separate customs unions.

One way to improve international trade is to introduce a common currency. Eight countries in the region agree to introduce a new common currency in July 2020. This will serve as a positive factor in the development of the African economy as a whole, as it will make it possible to use more widely the specializations of each country.