4. What is the trade situation of Tanzania? How much does this country export/import (compare it...
4. What is the trade situation of Tanzania? How much does this country export/import (compare it to the US)? What products/services are exported/imported the most? Do they have a positive trade balance or a negative trade balance (line graph of the past 5 years)? Who are the most important trading partners (exports/imports) of this country (Pie-Chart)? Is the trade situation of this country improving or declining? What is the significance of having a positive trade balance?
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Homework Answers
Tanzania exports stand at 4.1million US dollars and imports at 7.7million dollar an dhence trade deficit of 3.58 million dollars. Trade growth is negative at - 12.4% agaijst world average growth rate of 1.5%.hence they have negative trade balance.
The most exported good is all kinds of outsourcing services at 15% of GDP.
The major partners with Tanzanian trade are India, South Africa, Vietnam, Kenya.
The trade situation has been declinibg due to lack of privatisation, excessive tariffsand instability of government.
Positive trade balance is very important as it helps offset fluctuating bsuiness cycle and currency volatility and ghus helps accumulation of foreign reserves.
References : Tanzanian Trade Statistics, WorldBank, 2017, WITS
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