Chapter 7: Trade between Europe and Africa, Asia and Africa

Keywords

1. domestic trade
2. foreign trade
3. barter trade
4. visible trade
5. invisible trade
6. imports
7. exports

After studying this chapter, you should be able to;

1. know the trade which exists between Europe and Africa
2. know the trade between Asia and Africa
3. understand the benefits of trade to both sides
4. appreciate the role of trade in development 4
5. use flow charts statistics and maps to show trade patterns
6. form opinions about these two types of trade with Europe and Asia
7. analyze the trade statistics between the European union and African countries and Asia and Africa
8. appreciate the difficulties of negotiating trade agreements
9. appreciate the increasing importance of china in Africa and African development
10. appreciate the need for an economic system that helps to distribute the resource in an equitable way

Introduction

In Senior Three, you learnt about trade within and outside East Africa. You might have ever heard that countries trade with each other in East Africa, Africa, Europe and Asia.

In this chapter, you are going to learn the main forms of trade between Europe and Africa and the advantages and disadvantages for both; the trade between China and Africa and the reasons for its increasing importance.

Trade between the European Union and Africa

Figure 30.1: A map showing European countries that trade with Africa

Countries in Africa formed trade unions amongst themselves and European countries also formed the European Union. African countries signed an agreement mainly to achieve prosperity, competitiveness, security, stability and political unification in Africa. Map in figure 31.1 shows European countries that trade with Africa. After doing tasks. in activity 31.1, you will understand more about trade between the European Union and Africa.

Activity 31.1 Understanding trade between the European Union and Africa

In groups; carry out a textbook or internet research on trade between the European Union and Africa and do the following tasks.

1 Describe the kind of trade that exists between Europe and Africa.

2 What are the difficulties encountered in negotiating trade agreements?

3 Why do you think countries trade with one another?

4 Discuss the benefits trade brings to the European Union and to African countries.

5 Present your work to the rest of the class through discussion.

You have learnt that trade is meant to be between two parties that is the seller and the buyer. In this case countries have to depend on others for goods and items that they do not have. This helps to widen the market as well.

Trade between Africa and Asia

Figure 30.2: A map showing Asian countries trade with Africa

You might have realised that the trade relationships between Africa and Asia, especially China, increase the prosperity of African countries. This is because they have been able to increase the value added to their exports and also export more to the rest of the world.

Did you know that about one-third of Africa’s total trade is already with markets in developing and developed countries? China is now Africa’s second-largest single trading partner. After doing tasks in 31.2, you will understand more about trade between Africa and Asia.

Activity 31.2 Understanding trade between Africa and Asia In groups;

1 Identify countries which make up Asia

2 What kind of trade exists between Asia and Africa?

3 Find out goods and commodities you buy and use that are made in Asian countries.

4 Discuss the benefits of trade to the development of Asian and African countries.

5 Use knowledge acquired in chapter 27, explain why many Asian goods are very cheap compared to those from western industrialised countries.

6 Present your work to the rest of the class through a discussion.

You have learnt that, the main exports from Africa are mainly agricultural commodities such as coffee, tea, cocoa, meat and horticultural products. Asia exports machinery and manufactured goods to the African Continent.

Role of China in Africa’s development

Many of the commodities used in your home are labelled and made in China. You can name some of them. Over the last 15 years, China has become a major economic partner with several African countries. China is both a long-established diplomatic partner and a new investor in Africa.

Chinese concetration on the continent involves not only natural resources but also issues of trade, security and diplomacy. After doing tasks in activity 31.4, you will understand the role of China in Africa’s development.

Activity 31.3 Understanding the role of China in Africa’s development

In groups; carry out a textbook or internet search on the role of China in Africa’s development and do the following tasks.

1 Discuss the role of china in Africa’s development.

2 What effects will the increasing wages in China have on trade?

3 Present your work to the teacher for further guidance.

You have learnt that over the last 15 years, China has become a major economic partner of sub-Saharan African countries. Total merchandise trade between China and Africa increased. At the same time, Africa’s growth performance has improved significantly following two decades of negative growth rates in the 1980s and 1990s.

1 Draw a pie chart to represent the information in table 31.1.

2 Identify goods that African countries export to the European Union.

3 State the country that exports the highest percentage of goods to European countries.

4 Present your findings to the rest of the class through a discussion.

You have learnt that, as trade developed, merchants established regular trade routes. By the 1500s, a complex trade network linked Europe, Africa, and Asia. Much of this trade passed through the Arabian Peninsula in the Middle East. Ships from China and India brought their cargo of spices, silks, and gems to ports on the Red Sea.