Question

6(c). Highlight any four reasons most West African countries are experiencing balance of payment problems.

Accepted Answer

(i) Over-dependence on foreign goods (high import demand).
(ii) Low level of domestic production/manufacturing capacity.
(iii) Over-dependence on a single export product (lack of export diversification), making export earnings vulnerable to price swings.
(iv) High cost of servicing external debts.

WAEC Economics 2015 Theory — Question 16

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