The increasing complexity of trade has serious implications for the worlds poor, who often are disproportionately disconnected from global, regional or even local markets. Poverty is often concentrated in geographic areas that are poorly connected to active economic centers. Firms and communities in these areas miss opportunities to develop skilled, competitive workforces; they are not integrated in global production chains and are less able to diversify their products and skills. It is widely accepted that the level of international trade in an economy may be one of the main sources of its growth (Gurgul & Lach 2010).

In the context of the EAC member countries, describe the reasons as to why it has not been possible to achieve free trade in the region despite numerous trade agreements (10 marks)

Explain the contribution of international trade on economic growth taking the bilateral trade between Kenya and China as the context (10 marks)

The increasing complexity of trade has serious implications for the world's poor, who often are disproportionately disconnected from global, regional - or even local markets. Poverty is often concentrated in geographic areas that are poorly connected to active economic centers. Firms and communities in these areas miss opportunities to develop skilled, competitive workforces; they are not integrated in global production chains and are less able to diversify their products and skills. It is widely accepted that the level of international trade in an economy may be one of the main sources of its growth (Gurgul & Lach 2010). a) In the context of the EAC member countries, describe the reasons as to why it has not been possible to achieve free trade in the region despite numerous trade agreements (10 marks) b) Explain the contribution of international trade on economic growth taking the bilateral trade between Kenya and China as the context (10 marks)