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 Form 4 Geography Sample Exam Questions and Answers

State three negative effects of a country over relying on import goods.

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Answer Text:
- Hinder growth of home infant industries due to stiff competition/ slows industrialization
- Creates a state of dependency on developed countries/ slows exploitation of national resources
- Hinder diversification of the economy
- The country experiences unfavorable balance of trade/ retards economic development
- Whenever there is poor relationship with the trading partner the country experiences shortage of the import goods
- The country spends her foreign exchange reserve on imports/ faces devaluation of her local currency.