4.10 International Trade Strategies DRC

Question 1

What are some examples of international trade strategies?

Answer 1

1. Economic integration
2. Diversification

Question 2

How is “diversification” an international trade strategy in the DRC?

Answer 2

Diversification is the process of shifting an economy away from a single income source toward multiple sources from a growing range of sectors and markets.

DRC:
- MAJOR issue
- Ores and other precious metals represent the absolute majority of the DRC’s exports
–> when those are depleted, the DRC wont have much to trade…

Question 3

How is “economic integration” an international trade strategy in the DRC?

Answer 3

Economic Integration are the agreements between countries that usually include the elimination of trade barriers and aligning monetary and fiscal policies.

African Continental Free Trade Area
–> reduced or zero tariffs, free market access and market information, and the elimination of trade barriers.