Question

1. Kenyan-French trade includes flowers going from Kenya to France and cheese going from France to Kenya.
   1. From Kenya’s perspective, what are exports and imports? (2 points)

b. From France’s perspective, what are exports and imports? (2 points

Answer 1

Export and import of goods and services are the two integral part of foreign trade. Export is the goods and services produced in one country are sold to the residents of another country.

Import on the other hand is goods and services produced in another country are purchased by the residents of the country.

One country’s export is another country’s import and viceversa. The resident of one country sells and the resident of another country buy.

Kenya’s export is the import of France and export of France is the import of Kenya. Bothe involves sale and purchase.

a. The flowers going from Kenya to France and Cheese going from France to Kenya. Here on the side of Kenya, the flow of flowers from Kenya to France is its export. The residents of Kenya sell the flowers and the residents of France buy the flowers. Thus in Kenya’s perspective the flow of flowers from its national boundary to France is its export. Similarly Cheese flows from France to Kenya. Here the residents of Kenya buy the Cheese and the residents of France sell the cheese. Thus in Kenya’s perspective the flow of Cheese from France to its domestic territory is its import.

b. The Cheese flows from France to Kenya. Here the residents of France sell the Cheese to the residents of Kenya. Thus in the perspective of France, the flow of Cheese from its domestic territory to Kenya is its Export. Again the flowers going from Kenya to France. Here the residents of France buy the flowers and the residents of Kenya sell the flowers. Thus as far as France concerned, its citizens buy the flowers. Thus the flow of flowers from Kenya to France is the import of France.