Question

In 2017, the Ivory Coast exported $5.6 billion worth of cocoa beans and cocoa-derived products, such as cocoa butter. This represented 55 percent of the country’s exports and was worth four times the country’s combined gold and oil exports in that year. Which of the following best explains the international trade economy of the Ivory Coast?

(a) High level of dependency on a single agricultural commodity that increases national economic development and increases foreign direct investment
(b) High level of dependency on a single agricultural commodity that increases national economic risks during times of global economic crisis
(c) Low level of dependency on primary-sector production and resource processing that will increase the country’s level of development
(d) Low level of dependency on a single agricultural commodity that decreases national economic risks during times of global economic crisis

Answer 1

The Ivory Coast has a high level of dependency on a single agricultural commodity, cocoa beans, which boosts national economic development and increases foreign direct investment.

Step-by-step explanation:

The best explanation for the international trade economy of the Ivory Coast is (a) High level of dependency on a single agricultural commodity that increases national economic development and increases foreign direct investment. In 2017, the Ivory Coast exported $5.6 billion worth of cocoa beans and cocoa-derived products, which represented 55 percent of the country’s exports. This demonstrates a high level of dependency on cocoa as a major agricultural commodity.

The fact that the value of cocoa exports was four times the combined value of gold and oil exports indicates that cocoa is a significant contributor to the country’s economy and attracts foreign investment.