• UNIT 17 :TRADE AND COMMERCE IN THE WORLD

    Key unit competence: The student-teacher should be able to evaluate the
                                                   impact of trade and commerce on the sustainable

                                                   development of different countries in the world.

    Introductory activity

    For different reasons, many countries come together and create regional
    bloc such as European Union or East African Community. Conduct your own
    research and answer the following questions:
    1. Identify different regional integrations operating with Rwanda.
    2. What advantages does a country benefit from being a member of a

    trading bloc?

    17.1. Definition, types of trade and factors influencing international trade
    Activity 17.1

    Madame Kayitesi buys goods in large quantities from Inyange Industry.
    She owns one of the biggest shops in her village. Her products are bought
    by the local people and she takes some to the nearest markets in her
    district. Some of Inyange industry products are exported overseas.
    1. Identify the major imports of Rwanda
    2. Mention the types of trade indicated in the passage.
    3. Explain the factors influencing trade between Inyange industry

    and overseas countries.

    17.1.1. Definition of key terms
    Trade is the activity of buying and selling or exchange of goods and services at
    many levels. within a country or between countries. It also occurs between two
    individuals through the exchange. Trade is part of commerce.

    Commerce
    is the activity of buying and selling goods and services, especially
    on large scale or huge quantities.

    The earliest form of trade was probably “
    barter trade” in which one type of
    commodity was exchanged for another of equal value. The present trade is
    based on the exchange of goods and services for money.

    The present trade includes:
    a. Internal trade: This is the exchange of commodities within a country. It
    is also known as domestic trade. Traders normally need to exchange what
    they have with what they don’t have.
    b. Whole sale: This occurs when traders buy goods in bulky from both the
    manufacturers and importers.
    • Retail trade: This is where traders buy goods from the wholesalers
    and sell them in detail to the individual customers. Goods are sold into
    smaller units to kiosk owners, hawkers, shopkeepers and supermarket.
    c. International trade: This type of trade occurs between different nations
    of the world, on a global scale. Its rationale lies in the fact that no country
    can produce everything that it needs. It involves:
    • Bilateral trade: it is a trade between two countries.
    • Multilateral trade: it is a trade between many countries, through the
    exchanging imports where goods and services bought and brought into
    the country, and exports where goods and services are transferred to

    another country for sale.

    17.1.2. Factors influencing international trade
    The type and volume of trade that takes place at any level in any place is
    influenced by a number of factors. The most important factors are:
    • Capital: This is the greatest single factor influencing trade. Money is
    the engine that runs trade. Traders require capital to establish their
    businesses, purchase their wares and transport the commodities.
    Where capital is inadequate the volume of trade will also be low.
    • Demand and supply: For trade to take place there must be sufficient
    demand and good chain of supply of the items.
    • Transport and communication: Traders and goods need to move
    from one place to another to effect various trade related transactions.
    • Trade barriers: This includes the quota system for international
    trade, where a country may impose limits on imports and exports.
    • Government policy: This is where the government influences trade in
    certain commodities through taxation. For example, the government
    levies heavy taxes on certain goods such as cigarettes and alcohol.
    • Creation of trading blocs: The creation of regional common trading
    markets enhances trade due to increased cooperation between the
    member countries.
    • Political climate of a country: Political problems such as wars affect
    both internal and external trade because wars discourage foreign
    investors and at times destroy industries; whereas good diplomatic
    relationship between countries encourages foreign investments.
    • Population size and structure: This offers ready market for
    consumption of commodities and labor in trading activities.

    Application Activity 17.1

    Discuss how the following factors influence international trade in Rwanda:
    ─ Regional integration
    ─ Government policy
    ─ Population

    17.2. Causes of low levels of international trade in 
    developing countries and importance
    of international 
    trade in the development

    Learning activity 17.2
    Learning activity 17.2
    Most of the industrial products used in developing countries are imported
    from Europe, USA, ASIA etc. African countries also export agricultural
    products to the rest of the world but the gap between imports and exports
    in less developed countries still remains big.
    1. Identify the products exported by European countries in Africa.
    2. Outline the major exports of Rwanda to the developed countries.
    3. Explain the causes of this inequality between exports and imports.


    17.2.1. Causes of low levels of international trade in Developing
    Countries

    The following are the major factors causing the low levels of international trade
    in developing countries:
    • Difficulty to access the foreign markets: The foreign markets are
    dominated by the goods and services from developed countries
    because they have better quality and produce more quantity of goods.
    • Inadequate and insufficient domestic supply on the international
    market: This causes the increase in prices and this affect the final
    consumers.
    • Exportation of unprocessed products: Most of the developing countries
    export unprocessed products due shortage of industries or low level of
    technology.
    • Exportation of bulk and perishable products: Bulky and perishable
    goods such as horticulture products, fruits, vegetables and animal
    products, etc. present high risks to be damaged in transport process,
    or conservation.
    • Anti-competitive practices: Most of the developing countries are
    under anti-competitive practices by private enterprises in restricting
    the market access of developing countries to industrialized countries.
    • Capital inflows: The growing constraints on foreign aid and the
    difficulties in attracting increased foreign private financing and
    investment are affecting the growth prospects of countries lagging
    behind in global integration.

    1
    7.2.2. Importance of international trade in development
    International trade helps in development as follows:

    Foreign trade and economic development: Foreign trade plays an
    important role in the economic development of any country.
    Foreign exchange earnings: Foreign trade provides foreign exchange
    which can be used to reduce poverty. The foreign earnings for
    developing countries are obtained through exportation of products
    especially agricultural products and raw materials.
    Market expansion: The demand factor plays very important role in
    increasing the production of any country. The foreign trade contributes
    to expand the market and encourages producers.
    Foreign investment: Besides the local investment, foreign trade
    encourages investors to invest in those countries where there is a
    shortage of investment.
    Increase in national income: Foreign trade increases the scale of
    production and national income of a country. To meet the foreign
    demand, we increase the production on large scale so Gross National
    Product (GNP) also increases.
    Price stability: Foreign trade helps to bring stability in price level. All
    those goods which are short and prices are increasing can be imported
    and those goods which are surplus can be exported. There by stopping
    fluctuation in prices.
    Specialization: this refers to the quality and quantity of products by a
    given country. Each country adopts the specialization in the production
    of specific commodities, in which it has comparative advantage. So all
    trading countries enjoy profit through international trade.
    To improve quality of local products: Foreign trade helps to improve
    the quality of local products and extends market through changes in
    demand and supply as foreign trade can create competition with the
    rest of the world, and reduces the cost of importing production.
    • Import of capital, goods and technology: The inflow of capital, goods
    and technology in some less developed countries has improved their
    economies, due to foreign trade. Foreign trade is also responsible for
    spreading or acquisition of knowledge and how-to-do from developed
    countries to under developed countries.
    • Cooperation: Foreign trade provides an opportunity to the people
    of different countries to meet, discuss, and exchange views and ideas
    related to their social, economic and political problems.

    Application Activity 17.2

    1. Assess the role of international trade in the economic development of Rwanda.
    2. Suggest ways of reducing the gap between low exports and high

    imports in developing countries.

    17.3. Major financial centers and trading blocs of the world
    Learning activity 17.3

    1. Make research and explain the objectives of International Monetary
    Fund (IMF).
    2. Using specific examples, explain how the trading blocs improve the
    economic development of member countries.

    17.3.1. Major financial institutions and centres in the world

    (1) Major financial institutions in the world
    A financial institution exists to provide a wide variety of deposit, lending and
    investment products to individuals, businesses or both. While some financial
    institutions focus on providing services and accounts for the general public,
    others are more likely to serve only certain consumers with more specialized
    offerings.

    The major financial centers include:

    a. The International Monetary Fund
    The International Monetary Fund (IMF) was created in1945 and has Washington
    D.C. as the Headquarters. It began with 45 members.

    The aims of IMF are to promote international economic cooperation and

    international trade, strives to help stabilize exchange rates among member
    countries. IMF takes a lead in advising member countries and ultimately helps
    to avoid financial crises. The IMF also provides loans to help its members tackle
    balance of payment problems, stabilize their economies and restore sustainable

    economic growth.

    b. The World Bank
    The World Bank or the International Bank for Reconstruction and Development
    (IBRD) was founded in 1944. Its headquarters is in Washington D.C.

    It was set up with the aim of reconstructing the war-affected economies of

    Europe (during the Second World War) and assisting in the development of the
    less developed countries of the world.

    Today, the World Bank is more concerned with the development of member

    countries especially the developing ones. It provides loans for the purchase
    of capital goods necessary for development. In so doing, the World Bank
    concentrates on loans for projects that are clearly profitable. The World Bank’s

    current focus is on achievement of the Millennium Development Goals (MDGs).

    (2) The major financial centres in the world
    A financial centre is a location that is home to a cluster of nationally or
    internationally significant financial services providers such as banks, investment
    managers, or stock exchanges.
    The major global financial centres include:
    Amsterdam: (in Netherlands) is well known for the size of its pension
    fund market. It is also a centre for banking and trading activities.
    Chicago: The Illinois city has the “world’s largest exchange-traded
    derivatives market.”
    Dubai: In the United Arab Emirates, Dubai is a growing centre for
    finance in the Middle East, including for Islamic finance.
    Dublin: In Ireland, is well known because of its International Financial
    Services Centre, “IFSC”. It is a specialized financial services centre with
    a focus on fund administration and fund domiciling. It also conducts
    activities such as securitization and aircraft leasing.
    Frankfurt: (In Germany) Frankfurt attracts many foreign banks which
    maintain offices in the city.
    • Hong Kong: (China) as a financial centre, Hong Kong has strong links
    with London and New York City. It developed its financial services
    industry. Most of the world’s 100 largest banks have a presence in
    the city. Hong Kong is a leading location for initial public offerings,
    competing with New York City.
    • London: (England) London has been a leading international financial
    centre since the 19thcentury. And is the largest centre for derivatives
    markets, foreign exchange markets, money markets, issuance of
    international debt securities, international insurance, trading in gold,
    silver and base metals and international bank lending. London benefits
    from its position between the Asia and U.S.A
    • Madrid: (Spain) Madrid is the headquarters to the Spanish company
    Bolsas y Mercados Españoles, which owns the four stock exchanges
    in Spain, the largest being the Bolsa de Madrid. As a financial centre,
    Madrid has extensive links with Latin America and acts as a gateway
    for many Latin American financial firms to access the EU banking and
    financial markets.
    New York City: (USA) Since the middle of the 20th century, New York
    City, has been described as a leading financial centre. New York City
    remains the largest centre for trading in public equity and debt capital
    markets, driven in part by the size and financial development of the
    U.S. economy.
    Paris: (France). It is home to the Banque de France and the European
    Securities and Markets Authority. Paris has been a major financial
    centre since the 19th century. The European Banking Authority (EBA)
    has a headquarters in Paris fromMarch 2019.
    • Seoul: (South Korea) It is the capital that has developed significantly
    as a financial centre since the late 2000. Seoul has continued to
    build office space with the completion of the International Financial
    Center in 2013.
    • Shanghai: (China)This is one of Chinese and world financial centre. It
    competes with New York and London. China is generating tremendous
    new cap ital and state-owned companies in places like Shanghai.
    • Singapore: Singapore has developed into the Asia region’s largest
    centre for foreign exchange and commodity trading, as well as a
    growing wealth management hub. It is one of the main centres for

    fixed income trading in Asia.

    17.3.2. World trading blocs and regional integration

    (i) Definition

    A trade bloc is a type of inter-governmental agreement, often part of a regional
    inter-governmental organization, where regional barriers to trade, (tariffs and
    non-tariffs barriers) are reduced or eliminated among the member states
    Regional integration is a process in which neighboring states enter into an
    agreement in order to upgrade cooperation through common institutions and rules.

    (ii) Advantages of trading blocs and regional integration

    The following are the advantages of trading blocs and regional integration:
    Foreign direct investment: An increase in foreign direct investment
    results from trade blocs and benefits the economies of participating
    nations. Larger markets are created, resulting in lower costs to
    manufacture products locally.
    • Economies of scale: The larger markets created via trading blocs
    permit economies of scale. The average cost of production is decreased
    because mass production is allowed.
    Competition: Trade blocs bring manufacturers in numerous countries
    closer together, resulting in greater competition. Accordingly, the
    increased competition promotes greater efficiency within firms.
    • Trade effects: Trade blocs eliminate tariffs, thus driving the cost
    of imports down. As a result, demand changes and consumers make
    purchases based on the lowest prices, allowing firms with a competitive
    advantage in production to thrive.
    • Market efficiency: The increased consumption experienced with
    changes in demand combines with a greater amount of products being
    manufactured to result in an efficient market.

    (iii) Disadvantages of trading blocs and regional integration

    The following are the disadvantages of trading blocs and regional integration:
    Limited fiscal capabilities: Some regional integration agreements
    that involve the creation of a common currency most notably the
    European Union’s lead to fiscal crises.
    • Cultural centralization: Strong integration like the European Union
    can lead to the loss of unique minority cultures within a region. The
    European Union has a series of languages that it deems to be the
    official languages of the EU government. These do not include minority
    languages spoken by remote communities in Europe.
    • Loss of sovereignty: A trading bloc, particularly when it is coupled with
    a political union, is likely to lead to at least partial loss of sovereignty
    for its participants.
    • Concessions: No country wants to let foreign firms gain domestic
    market share at the expense of local companies without getting
    something in return. Any country that wants to join a trading bloc
    must be prepared to make concessions.

    (iv) Factors affecting regional integration

    The factors affecting regional integration are the following:
    • Homogeneity of the goods produced among the member states can
    hinder trade. If countries produce the same goods, there is no need to
    trade amongst each other. This situation is seen among East African
    countries which produce almost the same agricultural products such
    as maize, sugar etc. this undermines trade among them.
    • Shortage in foreign exchange. Some countries may not have enough
    foreign money to trade and buy from other countries. This may be
    because they do not earn enough from their exports.
    • Countries may have different ideologies. They may not be comfortable
    with their cultures or opinions. This makes it difficult to synchronize /
    harmonize their economic strategies.
    • In the trading blocs, trade is undermined by poor transport and
    communication. This is experienced mainly in developing countries.
    This makes it difficult to trade and move from one country to another.
    • For business to flourish there must be a peaceful environment.
    Therefore, if a member state is experiencing political instability, it
    will affect trading relations in the whole bloc. This undermines trade
    among the member states.
    • Some countries have trading partners who are not in the trading bloc.
    They prefer to trade with them rather than the member states of the bloc.
    • Member states could experience lack of funds or capital. They are
    unable to pay for goods ordered. This interferes with the functionality
    of the trading bloc.
    • Member states may not use the same language. There will be a language
    barrier among them making it difficult to communicate. This will make
    trading in the bloc more difficult and hinder economic integration.
    • Countries in the bloc may have different levels of development.
    Countries that are more developed will benefit more from the common
    market. The less developed countries will feel unfair trading practices
    against them.
    • In trading blocs, especially Africa, the member countries sell
    unprocessed primary goods. This limits trade because there are
    limited manufactured goods in the market.
    • There is interference from developed countries that are not in the
    trading bloc. They impose conditions that limit trade among the
    member states. This will undermine the union.

    (v) Problems affecting international trade

    Trade, like other human activities is facing some problems at regional and
    international level. They could be economic, social, political, environmental
    and cultural in nature. Problems of international trade include:
    • Protectionisms: There are ways of implementing a protectionist
    policy, and every country in the world protects some of its goods.
    • Tariffs: The effect of high tariffs is to make imported goods equally or
    more expensive than home produced articles.
    • Quotas: If tariffs are ineffective in halting the inflow of cheap foreign
    goods, countries may resort to imposition of quotas. By a quota system
    a country refuses to import more than a specified quantity of a certain 
    commodity.
    • Subsidies: The government of a country may pay subsidies or give
    tax relief, in order to keep home prices down. This operates in much
    the same way as tariff but involves assistance to home industry rather
    than penalization of foreign producers.
    • Trading blocs: In recent times trade has been modified by the
    formation of economic unions such as EEC (European Economic
    Community). Though tariffs are broken down between the member
    nations and there is greater flow of the trade amongst them.

    (vi) Possible solutions to problems of international trade

    The following are the solutions to the problems of international trade:
    • Joining and enforcing trading blocs like EAC, EEC.
    • Common market or grouping which not only reduces tariffs and other
    restrictions within the group but at the same time raises tariff barriers
    against outsiders.
    • Construction and rehabilitation of infrastructure among member
    countries
    • Political negotiations and discussions to reduce and final end political
    instability and insecurity so that a favorable trading atmosphere is
    created.
    • Improving the quality of manufactured goods so that they are attractive
    and competitive on the international market.
    • Foreign investment to diversify domestic economy within countries.
    This may overcome the problem of similarity of goods on the market.

    Application Activity 17.3

    Answer the following questions:
    1. Discuss why Rwanda should make trade with other countries.
    2. Analyse the challenges faced by Rwanda in carrying out trade with
    other countries.
    3. Discuss how “gains from international trade are mostly beneficial
    to rich countries”
    4. Suggest what the city of Kigali can do to become an international
    financial center


    17.4. Case studies

    17.4.1. Regional integration
    Learning activity 17.4

    1. Describe the major objectives of EAC.
    2. Analyse the challenges faced by ECOWAS member states in
    implementing its objectives as a regional block.

    (i) The East African Community

    The East African Community (EAC) is an intergovernmental organization
    composed of six countries in the African Great Lakes Region of Eastern Africa.
    The country members are: Burundi, Kenya, Rwanda, South Sudan, Tanzania,
    and Uganda. The headquarters of EAC is at Arusha in Tanzania.

    The organization was founded in 1967, collapsed in 1977, and was revived on

    7 July 2000. In 2008, after negotiations with the Southern Africa Development
    Community (SADC) and the Common Market for Eastern and Southern Africa
    (COMESA), the EAC agreed to an expanded free trade area including the
    member states of all three organizations. The EAC is an integral part of the
    African Economic Community.

    In 2010, the EAC launched its own common market for goods, labour and capital

    within the region, with the aim of creating a common currency and eventually a
    full political federation. In 2013, a protocol was signed outlining their plans for

    launching a monetary union within 10 years.

     C

    Aims of EAC
    The following are the aims of EAC:
    • To revive free movement of people, goods, money, and services.
    • To create common (tax) tariff.
    • To create large market for goods and services.
    • To promote regional cooperation.
    • To improve communication.
    • To share electricity.
    • To promote industrialization in the region

    (ii) Economic Community of West African States

    The Economic Community of West African States (ECOWAS) was created in May
    28,1975 via the treaty of Lagos. ECOWAS is a regional grouping with a mandate
    of promoting economic integration in all fields of activity of the constituting countries.

    Member countries of ECOWAS include Benin, Burkina Faso, Cape Verde, Cote

    d’ Ivoire, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria,

    Sierra Leone, Senegal and Togo.

    D

    Objectives of ECOWAS
    The following are the objectives of ECOWAS:
    • To promote economic cooperation
    • To uplift living standards of member states
    • To achieve and maintain economic stability of member countries
    • To enhance free movement in member states without immigration
    formalities.

    This regional organization has achieved the following:

    • ECOWAS has frozen all customs and tariffs on goods originating within
    West African and this has led to industrial growth.
    • It has decreased prices among the member states of some products
    like petroleum.
    • It has increased technological exchange among the member states.
    • There has been an improvement of communication in the region.

    17.4.2. Trading blocs

    (i) Organization of Petroleum Exporting Countries
    The Organization of Petroleum Exporting Countries (OPEC) is an organization
    of oil-producing countries. It controls 61 percent of the world’s oil exports and
    holds 80 percent of the world’s proven oil reserves. OPEC’s decisions have a
    huge impact on prices. The country members are: Algeria, Angola, Ecuador,
    Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United
    Arab Emirates and Venezuela.

    OPEC’s three goals

    • To keep prices stable. It wants to make sure its members get what a
    good price for their oil.
    • To adjust the world’s oil supply in response to shortages.
    To coordinate and unify the petroleum policies of its member

    countries and ensure the stabilization of oil markets.

    V

    (ii) The European Union
    The European Union (EU) is a union of 28 independent states based in Europe.
    It is the largest single common market in the world. The European Union has a
    common currency, the euro, which is acceptable in all member states. EU helps
    in promoting trade, agriculture and creation of employment.

    Member states of the EU are Austria, Netherlands, Hungary, Belgium, Portugal,

    Latvia, Denmark, Spain, Lithuania, Finland, Sweden, Malta, France, Poland,
    Slovakia, Germany, Slovenia, The United Kingdom, Greece, Ireland, Italy, The

    Czech Republic, Estonia, Luxembourg and Cyprus.

    X

    Application Activity 17.4
    1. Describe the major aims of OPEC.
    2. Explain how ECOWAS member states have benefited from this

    integration.

    Skills lab
    Trade and commerce has a great impact on the sustainable development of
    different countries in the world. Evaluate the impact of EAC to the sustainable

    development of Africa.

    End unit Assessment
    1. Draw the map showing the member countries of E.A.C.
    2. Conduct your own research to identify different regional
    integrations operating with Rwanda and show their main objectives.
    3. Examine the role of regional integration in the social, economic
    development of Rwanda.
    4. Analyse the reasons for low level of international trade in

    developing countries.

    GLOSSARY
    Acid lava: A molten material flowing from a volcanic vent. Acid lavais high in silicates, viscous,
    and does not flow far. It creates a steep sided dome
    Adit: Horizontal tunnels that have access to the mineral extraction.
    Aquaculture: Refers to breeding, rearing and harvesting of plants and animals in all types of
    water environments.
    Ashes: The solid remains of fires. Specifically, it refers to all non- aqueous, non-gaseous residues
    that remain after something is burned
    Bedding: An arrangement of rock strata in bonds of various thickness and characters.
    Brine: It is water that contains salt.
    Buffer zone: It is an area of land designated for environmental protection.
    Cinder cones: These are the simplest type of volcano. They are built from particles and blobs
    of congealed lava ejected from a single vent.
    Circumnavigation: Originally meant going around something, by ship. Usually it means people
    going around the world.
    Colluvial complex: This is the lower concave slope where there is gradual deposition of eroded
    material
    Condensation: This refers to the process by which water vapour in the air is changed into liquid
    water. Condensation is crucial to the water cycle because it is responsible for the formation of
    clouds. These clouds may produce precipitation, which is the primary route for water to return
    to the Earth’s surface within the water cycle.
    Continental shelf: The submerged, gently sloping margins of a continent.
    Contour: It is a line drawn on a map joining all the places with the same altitude above sea
    level.
    Deciduous forests: Forests or shrubs which shade all their leaves at certain season of the year
    as opposed to evergreen forests.
    Drill: It is a hydraulic method of mining and conveying coal in substantially vertical seams.
    Escarpment: Fault scarp or the wall of a rift valley.
    Extensive farming / agriculture: Is an agricultural production system that uses limited inputs
    of labour, fertilizers, and capital, in comparison to the land under cultivation.
    Family planning: The practice of controlling the number of children one has and the intervals
    between their births, particularly by means of contraception or voluntary sterilization.
    Foot: It is an a measure of length used in some systems, 1 foot = 0.3048 metres.
    Fossil: Is any preserved remains, impression, or trace of any once-living thing from a past
    geological age.
    Gem: A precious stone that has been cut and polished and is used in jewellery.
    Gravity: The force which attracts objects towards one another, especially the force that makes
    things falls to the ground.

    Inch: It is a measure of length used in some systems, 1 inch = 0.0254 metres; there are 12
    inches in one foot.
    Independent variable: These are variables being tested. Whereby its change directly results
    into a change in dependent variables.
    Inland water bodies: Sources of water that are found within a country. They include rivers,
    lakes, and swamps.
    Jewellery: Decorative objects worm on your clothes or body which are usually made from
    valuable metals such as gold and silver and precious metal.
    Leap year: A year that happens every four years and has an extra day on 29 February.
    Light year: The distance that light travels in one year (about 9,500,000,000,000 km).
    Metropolitan: It refers to a large city, its surrounding suburbs, and other neighbouring
    communities.
    Mile: It is an English unit of length, 1 mile = 1,609 metres.
    Mineral deposit: Is an aggregate of a mineral in an unusually high concentration. About half of
    the known chemical elements possess some metallic properties.
    Mineral ore: A naturally occurring solid material, from which a metal or valuable mineral can
    be extracted profitably.
    Open-pit, open-cast or open cut mining: Is a surface mining technique of extracting rock or
    minerals from the earth by their removal from an open pit or borrow.
    Plankton: The food for fish either in form of tiny sea organisms or plants that grow in water
    bodies.
    Population policy: A population policy is a set of measures taken by a State to modify the way
    its population is changing, either by promoting large families or immigration to increase its
    size, or by encouraging limitation of births to decrease it.
    Sewage: Used water and waste substances that are produced by human bodies, that are carried
    away from houses and factories through special pipes (= sewers).
    Shaft: A long narrow, usually vertical passage in an underground mining, used especially for a
    lift/elevator or as a way of allowing air in our out.
    Sluice: A sliding gate or other device for controlling the flow of water out or into a canal to
    wash something with stream of water.
    Subduction: A geological process that takes place at convergent boundaries of tectonic plates
    where one plate moves under another and is forced or sinks due to gravity into the mantle.
    Regions where this process occurs are known as subduction zones.
    Tsunami: The waves caused by sudden movement of the ocean due to earthquakes, landslides,
    large volcanic eruptions or meteorite impact in the ocean.
    Vulcanicity: The process through which gases and molten rock are either extruded on the
    earth’s surface or intruded into the earth’s crust.
    Wood fuel pellets: Pellet fuels (or pellets) are biofuels made from compressed organic matter
    or biomass. Pellets can be made from any one of five general categories of biomass: industrial
    waste and co-products, food waste, agricultural residues, energy crops, and virgin lumber.
    Xerophyte: This is a species of plant that has adaptations to survive on an environment with
    little liquid water such as a desert or an ice or snow covered region.

    REFERENCES
    A.G, B. (2004). A step by step approach . Boston : Mc. Grawhill.
    A.S, S. (2011). statistics and Geography of the World: World problems and development
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    UNIT 16 :TRANSPORT AND COMMUNICATION IN THE WORLDTopic 18