Content Introduction Definition of external trade

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

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.22/04/20142IntroductionDefinition of External TradeThe Factors Leading To External TradeThe Benefit & Challenges of External TradeThe Overview of External Trade In GhanaMeasures to Enhance External Trade for Economic Growth In Ghanas Economy.Conclusion.

CONTENTS

A basic economic concept that involves multiple parties participating in the voluntary negotiation and then the exchange of ones 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.

22/04/20143WHAT IS TRADE?INTRODUCTION

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 InvestopediaFACTORS RESULTING IN EXTERNAL TRADEResource EndowmentTechnologyClimate

22/04/20144WHAT IS EXTERNAL TRADE?

REVENUEEXPANSION OF MARKETEMPLOYMENTGLOBAL SHARE

LANGUAGE BARRIERSPOLITICAL INSTABILITIESCURRENCY

22/04/20145WHAT DOES GHANA TRADE?

TRADITIONALNON-TRADITIONALGOLD

TIMBER

COCOA

PINEAPPLESBENEFITS CHALLENGES

Ghana engages in trade and this has played a pivotal role in the economys performance. The Ministry of trade and industry is responsible for the formation of implementation and monitoring of Ghanas internal and external trade. In 2011, the contribution of external trade to GDP was 79%, a 20% increase over the 2010 value. Nevertheless Ghanas 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 countrys foreign exchange.

22/04/20146THE OVERVIEW OF EXTERNAL TRADE IN GHANA

Establishing imports substitution industriesEncouraging, supporting and granting incentives to companies who produces exportable goods.Generally strengthening the level of security at our bordersDiversifying products exported and markets

22/04/20147Measures to Enhance External Trade for Economic Growth In Ghanas Economy.

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.

22/04/20148Establishing imports substitution industries

IncentiveThese 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.22/04/20149 Strengthening the level of security at our borders

Diversification 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. 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.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.22/04/201410Conclusion22/04/201411END OFPRESENTATION