Discuss the extent to which economic development in the resource-rich economies of sub-Saharan Africa is likely to be promoted by international trade

Through international trade resource-rich economies in sub-Sahara Africa will be able to increase their exports; since exports are a component of Aggregate Demand, this will increase AD. Higher AD will increase the output of these economies, leading to higher GDP; resulting in higher levels of employment or living standards or raising GDP per capita.

However, higher GDP does not guarantee that economic development takes place as the benefits of economic growth may be unequally distributed or may be concentrated in just one sector of the economy

Answered by Euan H. Economics tutor

2425 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Highlight and explain 2 differences and one similarity between a monopoly market and a perfectly competitive market


Explain the key characteristics of perfect competition


Explain the 2 ways in which a reduction in interest rates can change consumption in the aggregate demand model of the economy.


What is an economic recovery and how is it related to unemployment?


We're here to help

contact us iconContact usWhatsapp logoMessage us on Whatsapptelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo
Cookie Preferences