The importance of exports trate in the development of Uganda

Postive importance

• Export trade has led to development of infrastructure such as roads, railway lines and ports
• Export trade has promoted industrialization for value addition
• Export trade has led to development of urban centers which at as collection centers.
• Export trade has attracted foreign investors and capital inflow
• Export trade has led to diversification of the economy
• Widens market for agricultural output
• Sourceof government revenue through taxes
• Has created employment opportunities
• Has promotes full utilization of natural resources.
• Has promoted international relations among the trading partners.

Negative importance

• Export trade has led to profit repatriation
• Encourages smuggling
• Leads to over exploitation of natural resources for profit maximization
• Lead to shortage of goods on domestic market for example fish on the local market
• Lead to inflation on the domestic market
• Lead to urbanization and related side effects such increase crime rate.

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