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CHAPTER 9: TRADE

3/9/2016

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TRADE

​It is the exchange of goods and services between people or countries 

​Methods of trade  

Barter trade
  • Is the exchange of goods for goods
  • Emerged from the natural needs of the people
  • In some areas a form of `silent’ barter trade was practiced between communities who could not communicate in the same language
Disadvantages of barter trade
  • The physical character of some of the items used for barter made them in convenient to handle
  • It was not always easy to agree on the valves of some of products
  • The traders found themselves stranded whenever they lacked double coincidence of wants
  • Some of the products were not easily divisible into smaller quantities
Currency trade
  • Involves use of money
  • Items used as currencies as in pre–colonial Africa were gold dust, cloth, copper rods, iron and cowries shells 
Advantages of currency trade
   Is a store of value and wealth
   Is a convenient medium of exchange
   Is easily divisible into smaller units
   Is used as a measure of value of both goods and services
   International recognized currencies includes
  • Us dollar
  • Japanese yen
  •  The euro
  • The British sterling pound 

​Types of trade 

  • Local trade
  • International trade
  • Regional trade 

​Local trade 

  • ​Involves the exchange of goods between people within the same geographical area
Origin development and organization
  • Took place between group of people who produced different goods mainly because of varying ecological conditions
  • Sometimes trade extended beyond the local community to the immediate neighbors e.g. abagusii and Luo
Impact of local trade
  • Each region developed its own market places which specialized in certain items
  • Helped to strengthen the bond between people in the same locality
  • Satisfied the requirements of the communities in terms of tools, foodstuff medical herbs e.t.c
  • Enhanced the acquisition of new products
  • Led to improvement of transport routes
  • Led to development of towns and market centers’
  • Many people were brought together through trade
  • Encouraged communities to expand production
  • Contributed to the improvement of peoples living conditions

​Regional trade  

  • Involves between two distinct geographical region
  • Include participation of
  1. People who specialize mainly in trade as their means of livelihood
  2. Traders who acts as middle men  between the producers of goods and the buyers
  • Involves a large volume of commodities as compared to local trade
Examples of regional trade include
  • The trans-Saharan trade - carried out between the peoples of the Sudan belt of west   Africa and North Africa
  • The long –distance trade – carried between the peoples of east Africa interior and the Waswahili of Arabs of the east African coast 

​International trade 

  • ​Involves the exchange of goods between different countries in one continent and even beyond the continent e.g. involves the exchange of goods across the Sahara
  • Involved the exchange of goods between the peoples of North Africa (Berbers and Tuaregs)
  • Products from south Sudan were in high demand among the North Africans 
Factors that facilitated for the development of trans-Saharan trade
  • Availability of capital
  • Local trade existed among them giving them good foundation on which trade could thrive
  • Existence of various trade commodities
  • Demands for goods
  • Existed a lot of cooperation between the Berbers and Tuareg who guided the caravans to the market centers’ in the Sudan belt
  • Tuaregs also provided the requisite security and maintained some water points
  • Existence of pack animals such as horses, camels 
  • The caravan trade was boosted by the emergence of strong kings who encouraged the emergence merchants in their activities and offered protection to the traders 
  • Existence of well established trade routes
  • Some activities taking place outside the continent also favoured the development of trade

​Trade goods 

From western Sudan  
  • Gold – originate from wangara region, Bornu upper Senegal and Niger
  • Slaves
  • Kola nuts and feathers – Kano region  
  • Hides and skins – hausaland
  • Ivory – cot d`voire
  • Gum – Mauritania and Senegal
  • Dyed cloth and pepper  
From North Africa
  • Tanghaza, taodeni, bilma and ghadames
  • Horse – Tripoli
  • Glassware
  • Beads
  • Mirrors
  • Perfumes
  • Spices 
  • Dried fruits
  • Firearms
  • Daggers
  • Cowries shells​

​Organization of trans-Saharan trade 

​Involves the exchange of goods between goods between people who lived a great distant apart 

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