Answer to Question #245773 in Economics for Zee

Question

You are required to review trends international trade and economic growth in South africa.

Answer 1

International trade is considered a significant source of economic growth worldwide. While international trade flows have often been volatile and prone to recurring trade barriers, many countries still seek international trade because of the large, favorable externalities associated with the trade. Trade’s position as a driver of economic growth is fast becoming crucial, particularly in African countries, since the region is endowed with natural resources with low industries to process these resources into consumable goods and other intermediate products. Therefore, external trade in these resources is necessary to complement the local processing industries to promote economic growth.