CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND TO THE STUDY:

The concept of International Trade has been of immense importance in the existence

of the nations of the world because no nation is completely self-sufficient. In

addition, the needs and wants of people in all parts of the world are better served by

exchanging commodities and services1. Trade increases the standard of living for all

countries. For some countries, foreign markets take a third to a half of the total

output and the standard of living depends crucially on the international division of

labour