Trusted by millions of Kenyans
Study resources on Kenyaplex

Get ready-made curriculum aligned revision materials

Exam papers, notes, holiday assignments and topical questions – all aligned to the Kenyan curriculum.

Explain three ways in which trade is of significance to Kenya’s economy

Explain three ways in which trade is of significance to Kenya’s economy

Answers


gideon
- Economic growth – trade makes goods available where there is demand. It leads to development
of industries in both agricultural and manufacturing sectors.
- Industrial growth – demand for goods stimulates industrial growth more industries are set up to
satisfy increased demand.
- Trade enables Kenya to earn foreign currency which is used in local investment and imports.
- Kenya has developed its transport and communication through trade.
- Source of revenue
– The government earns revenue by changing sales tax on manufactured goods sold locally.
- Trade has created employment in sectors dealing with foreign trade as well as in wholesale and
retail enterprises.
- Trade has stimulated specialization in the production of goods. Countries specialize in areas
where they can produce quality products.
- Development of settlements – many towns owe their origin to starting of small markets.
gideon1 answered the question on October 4, 2017 at 05:02

Answer Attachments

Exams With Marking Schemes

Related Questions