1. The port of Mombassa is the only international port in Kenya. In fact the Port of Mombassa not only serves Kenya but is also the main gateway to the Eastern African hinterland countries of Uganda, Rwanda, Burundi, the Democratic Republic of Congo and Southern Sudan.
Using your knowledge of economy theory, examine the market structure of international ports in East Africa and the implications for the welfare of importers and exporters in that region.
2. To what extent can government fine tune the macroeconomy?
In order to pass this assignment, you must meet the following assessment criteria:
You must address the questions.
You must demonstrate a basic understanding of the relevant economic theory.
You must include at least one relevant diagram in each essay.
Some sources must be referenced in the text of each essay, together with a bibliography at the end.
This assignment may seem intimidating, but if you focus on the importance of international trade, you will see that you can handle it. I will get you started on this assignment; however per BrainMass policy you are responsible for completing it yourself.
In the first paragraph of your essay, I suggest you focus on the role ports play in international trade. Ports have always been vital factors in the economic performance of a region, so this shouldn't be difficult. Ports also generate jobs in the local community surrounding the port. For most countries, international trade is a significant portion of their GDP. You should do some research on how important international trade is to these African nations. You can probably find some useful information in the World Fact Book: https://www.cia.gov/cia/publications/factbook/index.html
Once you have established the importance of international trade for these countries, you can look at different economic models to see how the bottleneck created by this one port can impact things. You should focus on models you've used in class. I will mention several here, though, as I don't know which ones your instructor has emphasized.
The Ricardian model focuses on comparative advantage, which is ...
Assistance regarding international trade and government intervention in the economy.