Discuss the extent to which economic development in the resource-rich economies of sub-Saharan Africa is likely to be promoted by international trade

Through international trade resource-rich economies in sub-Sahara Africa will be able to increase their exports; since exports are a component of Aggregate Demand, this will increase AD. Higher AD will increase the output of these economies, leading to higher GDP; resulting in higher levels of employment or living standards or raising GDP per capita.

However, higher GDP does not guarantee that economic development takes place as the benefits of economic growth may be unequally distributed or may be concentrated in just one sector of the economy

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Answered by Euan H. Economics tutor

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