In 2015, the Tripartite Free Trade Area (TFTA) was established. It covers 26 countries and is the biggest free trade area in Africa. Removing trade restrictions can enable economies to take greater advantage of economies of scale. Some economists argue that improving Africa's roads would be more beneficial and would do more to reduce a current account deficit on the balance of payments and raise living standards.

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

1. [1] A fall in average costs (1) resulting from an increase in output/scale of production (1).
2. [1] Lower prices
3. [1] increases purchasing power
4. [1] due to greater competition or economies of scale
5. [1] Better quality
6. [1] improve living standards
7. [1] due to greater competition
8. [1] Greater availability/variety of products
9. [1] products can be purchased that are not made in the domestic economy
10. [1] Higher exports can lead to economies of scale
11. [1] and therefore lower prices
12. [1] Lower transport costs may reduce costs of production
13. [1] lower costs may reduce export prices
14. [1] making the country's products more internationally competitive
15. [1] increase demand for exports
16. [1] Could attract more MNCs to set up
17. [1] which tend to export high proportion of output
18. [1] Higher export revenue would enable a country to buy more imports
19. [1] Lower transport costs may enable a country to specialise to a greater extent
20. [1] this would encourage it to export the products it is good at producing
21. [1] and import the products it is not so good at producing
22. [1] Lower transport costs will reduce the cost of getting imports to market
23. [1] lower price of imports
24. [1] increase demand for imports
25. [1] Lower transport costs for consumers can increase purchasing power and increase import spending
26. [1] Could encourage tourism
27. [1] increasing exports and imports of services
28. [1] Giving people access to basic necessities
29. [1] may take them out of poverty
30. [1] Suggests higher incomes per head
31. [1] allowing people to consume more goods and services
32. [1] Improving healthcare
33. [1] reduce death rates/people more fit for work
34. [1] raise productivity
35. [1] raise output/generate economic growth
36. [1] Improving education
37. [1] may increase skills
38. [1] raise productivity
39. [1] raise output/generate economic growth
40. [1] Better quality housing
41. [1] can reduce illness
42. [1] raise productivity
43. [1] raise output/generate economic growth
44. [1] Raising livings standards may cause higher inflation
45. [1] a rising current account deficit
46. [1] Inflation may be more of a problem
47. [1] costs of inflation (max 2)
48. [1] Unemployment might be more of a problem
49. [1] costs of unemployment (max 2)
50. [1] Current account deficit might be more of a problem
51. [1] costs of current account deficit (max 2)
52. [1] Living standards is an average concept
53. [1] and may be associated with rising inequality
54. [1] Some measures that could improve living standards such as taxing polluting firms
55. [1] may reduce economic growth
56. [1] and so may result in lowering living standards (at least in the short run)
57. [1] It may be more important to maintain living standards
58. [1] (because) a rising population
59. [1] may be putting pressure on resources