application stuff

Question 1

What crops are the most subsidized by the US government?

Answer 1

What crops are the most subsidized by the US government?
The U.S. government heavily subsidizes grains, oilseeds, cotton, sugar, and dairy products.

Question 2

corn subsidies USA

Answer 2

in July 2019 the USDA authorized up to $12.0 billion in financial assistance as part of a trade aid package for certain agricultural goods producers, including corn.

Question 3

nigeria dependence on oil sector

Answer 3

• Oil accounts for about 90% of Nigeria’s export earnings and 60-70% of government revenue
• accounts for 40% of GDP
• Nigeria entered a recession in 2016
• as the oil sector (which drives much of the economy) was severely affected

Question 4

how did an external shock with oil affect Nigeria

Answer 4

2014 when global oil prices plummeted.
- Oil prices fell from a high of around $115 per barrel in mid-2014 to below $30 per barrel by early 2016.

• Nigeria’s economy, heavily dependent on oil exports, contracted significantly during this period
• The crash in oil prices led to a sharp decline in Nigeria’s foreign exchange earnings, significantly impacting government revenue.
• The drop in oil prices led to a shortage of foreign exchange reserves, causing the naira (Nigeria’s currency) to depreciate against major currencies like the U.S. dollar. The Nigerian Central Bank had to devalue the naira several times, and the black-market exchange rate surged.
• The naira’s depreciation contributed to inflation, particularly in food and fuel prices, which hit the poorest Nigerians hardest.
• With oil prices down, Nigeria faced challenges in meeting its budget, leading to higher borrowing costs and inflationary pressures, especially in the import-dependent economy.
• The Nigerian government faced a revenue shortfall, which made it difficult to fund critical infrastructure, social programs, and public sector salaries.
• With high unemployment and a slowdown in economic growth, Nigeria saw an increase in poverty rates during and after the oil price crash

Question 5

arguments against Nigeria being dependent on oil

Answer 5

Recent Efforts at Diversification:
- Nigeria has been attempting to diversify its economy through initiatives like the Economic Recovery and Growth Plan (ERGP), aimed at improving the agricultural sector, boosting manufacturing, and developing the non-oil export sectors.
- The non-oil export sector has seen gradual growth, especially in agriculture (e.g., cocoa, rubber, and cashew nuts) and services like telecommunications.

Growth in Non-Oil Sectors:
- The telecommunications industry, for example, has experienced significant growth in recent years, contributing to the country’s GDP.
- Nigeria is also a major player in sectors such as financial services, entertainment (Nollywood), and technology startups.
- These sectors show that the country is making steps toward reducing its reliance on oil.

Oil Still a Long-Term Advantage:
- Despite the overdependence on oil, Nigeria’s oil resources remain a long-term asset that could fuel its economy for decades.
- Oil remains a vital source of revenue and, with global demand expected to continue for the foreseeable future, Nigeria can still use this advantage to fund diversification projects and reduce vulnerability in the long run.

Nigeria’s Regional Influence:
- Nigeria’s oil exports play a crucial role in its regional influence in Africa. Even as it works to diversify, Nigeria’s strategic position as one of Africa’s largest oil producers allows it to leverage its resources in diplomatic and economic relations, as seen in its participation in OPEC

Question 6

arguments for nigeria being over reliant on oil

Answer 6

Vulnerability to Oil Price Shocks:

• Nigeria is vulnerable to global oil price fluctuations.
• When oil prices fall, like during the 2014-2016 oil price slump, Nigeria suffers from reduced revenue, leading to economic contraction, foreign exchange shortages, inflation, and rising debt. The dependence on oil exports has left the country exposed to external shocks beyond its control.

Underdeveloped Infrastructure:
- The oil sector in Nigeria has historically enjoyed preferential treatment in terms of investment and development, leaving other industries underfunded and underdeveloped.
- This infrastructure imbalance is a direct result of Nigeria’s focus on oil.

Question 7

examples of corruption in Nigeria

Answer 7

1. Diezani Alison-Madueke, who oversaw massive corruption in the petroleum sector, with funds meant for oil development projects being misappropriated. She was accused of diverting billions of dollars in public funds, engaging in money laundering, and mismanaging Nigeria’s oil wealth.
2. Snake Swallowing 5 Million Naira - This incident, which many saw as a cover-up for embezzlement, became a symbol of the country’s endemic corruption.
   (The corruption scandals involving figures like Alison-Madueke have had a lasting impact on Nigeria’s oil revenue, which is essential for the country’s economy. The mismanagement of oil resources has contributed to income inequality, stunted economic growth, and hindered much-needed development projects.)
3. Mohammed Sanusi Lamido - . His public revelation of the $20 billion missing from NNPC highlighted the systemic corruption within the government. Despite being hailed as a hero by some for exposing the corruption, Sanusi was ultimately removed from office . This undermined efforts to address the root causes of Nigeria’s economic underdevelopment.

4.

Question 8

trumps tariffs

Answer 8

Trump said a levy of 25% on Canadian and Mexican imports as well as an additional 10% tax on Chinese goods would come into force on Tuesday.
- Canadian energy faces a lower 10% tariff.