Study Transport and communication costs in the Pearson Edexcel A Level Business specification, with the knowledge and exam application needed for accurate mark-scheme responses.
Extract A Senegal - Selected indicators - Population of Senegal in 2021 was 17.2 million - GDP of Senegal in 2021 was $25.5bn
Gross Domestic Product (GDP) growth rates
* estimate
Extract B Africa's Free Trade Area The African Continental Free Trade Area (AfCFTA) started in 2021. All African countries have signed the agreement, apart from Eritrea. It is hoped that these 54 countries will grow together to form a single market.
They have pledged to eliminate import tariffs on 97\% of goods traded between African countries over a period of time. It is hoped that this will increase trade between African countries, which will in turn boost economic growth, bringing more prosperity and social equality to those on the continent.
According to the World Economic Forum, African nations currently trade more internationally than with each other. Only 17\% of African exports go to other African countries, whereas in Asia 59\% of its exports go to other Asian countries and in Europe it is 68\%.
Extract C Senegal attracts investors The largest wind farm in West Africa is in Senegal, 70 km northeast of Dakar. Stretching across 41 hectares, the Taiba N'Diaye wind power project has attracted over $400m of Foreign Direct Investment (FDI). When operating at full capacity, it will provide two million people with electricity and supply nearly a sixth of Senegal's power needs.
It is not the only large energy project that looks set to transform Senegal's economy. Reserves of more than 1 billion barrels of oil and 40,000 billion cubic feet of gas have been found just offshore. Another major find by British oil company BP and US operator Kosmos Energy has led to the development of the $4.8bn Greater Tortue Ahmeyim (GTA) project, which has 15 trillion cubic feet of recoverable gas reserves.
As a result of the oil and gas discoveries investor interest has increased, encouraged by the appealing nature of the broader Senegalese market. In a relatively unstable region, with recent coups in Guinea and Mali and turbulence in Côte d'Ivoire, Senegal stands out for its political stability.
Extract D The second wave of globalisation was enabled by technology The worldwide expansion of trade after the Second World War was largely possible because of reductions in costs. This was due to technological advances, such as the development of commercial aviation, the increase in productivity in shipping and the improvements in communication.
The reductions in costs had an impact, not only on the volumes of trade, but also on the types of exchanges that were possible and profitable.
By the end of the 20th century... - Passenger air transport costs were of the costs in 1930 - Sea freight costs were 22.32\% of the costs in 1930 - International calling costs were 0.03\% of the costs in 1930
Assess the role of reduced costs of transport and communication in
increasing globalisation.