In 2017 the Ivory Coast exported $5.6 billion worth of cocoa beans and cocoa-derived products, such as cocoa butter. This represented 55 percent of the country’s exports and was worth four times the country’s combined gold and oil exports in that year. Which of the following best explains the international trade economy of the Ivory Coast?

Question

Group of answer choices

Low level of dependency on a single agricultural commodity that decreases national economic risks during times of global economic crisis

Nomadic pastoralism is an extensive agricultural system practiced

High level of dependency on a single agricultural commodity that increases national economic development and increases foreign direct investment

High level of dependency on a single agricultural commodity that increases national economic risks during times of global economic crisis

Low level of dependency on a single agricultural commodity that increases national economic development and increases foreign direct investment

Answer 1

The best explanation for the international trade economy of the Ivory Coast, given the information about its heavy reliance on cocoa exports, is:

High level of dependency on a single agricultural commodity that increases national economic risks during times of global economic crisis.

This option reflects the reality that such a heavy reliance on one commodity (cocoa) can pose risks to the national economy, especially during global downturns or fluctuations in cocoa prices.