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Introduction Definition of External Trade The Factors Leading To External Trade

PRESENTATION ON THE FOUR(4) WAYS BY WHICH GHANA CAN ENHANCE THE PERFORMANCE OF IT’S EXTERNAL TRADE SECTOR TO PROMOTE RAPID ECONOMIC GROWTH. TH. CONTENTS. Introduction Definition of External Trade The Factors Leading To External Trade The Benefit & Challenges of External Trade

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Introduction Definition of External Trade The Factors Leading To External Trade

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  1. PRESENTATION ON THE FOUR(4) WAYS BY WHICH GHANA CAN ENHANCE THE PERFORMANCE OF IT’S EXTERNAL TRADE SECTOR TO PROMOTE RAPID ECONOMIC GROWTH. TH

  2. CONTENTS Introduction Definition of External Trade The Factors Leading To External Trade The Benefit & Challenges of External Trade The Overview of External Trade In Ghana Measures to Enhance External Trade for Economic Growth In Ghana’s Economy. Conclusion. .

  3. INTRODUCTION WHAT IS TRADE? • A basic economic concept that involves multiple parties participating in the voluntary negotiation and then the exchange of one’s goods and services for desired goods and services that someone else possesses. Definition by investopedia • Commercial transaction involving the sale and purchase of a good, service, or information. By business dictionary.

  4. WHAT IS EXTERNAL TRADE? • It is the exchange of capital, goods and services across international borders or territories. • It is the exchange of goods and services between countries. By Investopedia FACTORS RESULTING IN EXTERNAL TRADE • Resource Endowment • Technology • Climate

  5. WHAT DOES GHANA TRADE? TRADITIONAL NON-TRADITIONAL • REVENUE • EXPANSION OF MARKET • EMPLOYMENT • GLOBAL SHARE • LANGUAGE BARRIERS • POLITICAL INSTABILITIES • CURRENCY PINEAPPLES GOLD TIMBER COCOA CHALLENGES BENEFITS

  6. THE OVERVIEW OF EXTERNAL TRADE IN GHANA Ghana engages in trade and this has played a pivotal role in the economy’s performance. The Ministry of trade and industry is responsible for the formation of implementation and monitoring of Ghana’s internal and external trade. In 2011, the contribution of external trade to GDP was 79%, a 20% increase over the 2010 value. Nevertheless Ghana’s export earnings still constitute a narrow range of products especially traditional (i.e. Cocoa, Gold and Timber) constituting about $801.5m and non-traditional also about $1629.2m of the country’s foreign exchange.

  7. Measures to Enhance External Trade for Economic Growth In Ghana’s Economy. • Establishing imports substitution industries • Encouraging, supporting and granting incentives to companies who produces exportable goods. • Generally strengthening the level of security at our borders • Diversifying products exported and markets

  8. Establishing imports substitution industries Where local Industries are set-up for the goods imported in the Country that can be produced locally. Such as rice, sugar, tomato products, Cooking Oil etc. • Incentive These incentives could come in the form of direct payments or could come in the form of reduced tax. Such as corporate tax rebate, bonded ware housing, custom duties drawback etc.

  9. Strengthening the level of security at our borders Personnel who work at these borders need to be equipped with the needed logistics, expert training in order to promote transparency and professionalism at our borders. • Diversification Trade diversification is the process by which a business, nation, or other economic entity offers a range of different products or services, as opposed to specializing in just crippled by a poor growing season, while an economy with a variety of agricultural and manufacturing sectors could more easily survive such unfavorable conditions.

  10. Conclusion • In summary, the external trade sector has not been performing too well for some time now and if these measures are put in place, it will help promote rapid economic growth.

  11. ENDOFPRESENTATION

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