- Political strife common in many of the third world countries of Africa is a major hinderance to international trade
- The prices of the primary products they export are low and unstable.
- They face the problem of inadequate capital. The value of manufactured goods which they import is higher than the value of their exports.
- Most of the countries have a high specialization index in agricultural products which are prone to adverse weather conditions and price instability.
- They produce almost similar goods and so face a problem of competition and inadequate market.
- Many of them still maintain historical links with their former colonial master and their pattern of trade still flows following the earlier links.
- Political problems between many of these third world countries discourages investors from investing in these countries.
- Inadequate means of transport also hinder trade. Transport and communication is not well developed in most of these countries.
Kavungya answered the question on April 1, 2019 at 12:25
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